In the first week of February I used this column to comment on Netflix being dropped in the FAANG-to-magnificent-seven transition, with Tesla managing to be included. The crux of it was that I felt much better about Netflix, where the economics seem to have improved a lot, than Tesla, which is suffering from heightened competition in electric vehicles and some big questions about genuine customer demand.

At that stage, Netflix was trading at $567 a share, having rallied like crazy in the first month of the year from below $470. At the time of writing, Netflix is trading at $622 a share, which is a gain of 9.7% since the piece I wrote in February. Conversely, Tesla was at $189 in early February, having crumbled from $248 at the start of the year. The negative momentum and deteriorating fundamentals have continued, with the company now trading at $171 a share. I maintain that Netflix should be in the magnificent seven, not Tesla. ..

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