Sometimes NON GAAP can be very useful but it can also be #$%$. Enjoy some analysis on why TESLA's latest earnings are #$%$. I break it down for you guys. Somethings you should be aware of in terms of revenue recognition.
Great post James. But the numbers don't matter...it's all about the story (sarcasm). I work with a guy who bought at $20/share and hasn't sold a share. I ask him why not take some profits and it was like he never even considered it. I think I offended him. He went on and on about how Elon Musk is such an extraordinary guy that TSLA will get as big as he wants it too. I have to admit, he's been right so far (for staying long). I just can't imagine paying up like that for a company. Perfect example of why I don't short stocks. I would've shorted TSLA at $40. That would've hurt! I keep expecting the inevitable drop, but it just keeps climbing. INSANE!
lol ya I know. IN the long run numbers do matter though. I was interested in their accounting from their quarterly filing. I just felt like not one analyst picked up on this. Also I enjoy looking into this stuff because while I won't consider buying Tesla it is important to keep my accounting skills sharp so I can use them on real companies.
Ya there is a story that warren Buffett said he would ask students to value a tech company. And he said he failed anyone who answered.
Thats the key with Tesla. Not even I would think about shorting. Its value is such a wide range of values. That its valuation at this point is made up. I would err on shorting if I had to pick one. However its best not to touch either way.
Also ya Elon Musk is an all star. But I would murder your co-worker in a debate. It sucks. He thinks he is so smart that he is right. So he thinks he is smart. This quote is from me not Buffett and its a bit more crude but as I say.
An Idiots can make money
A smart person can lose money
However an idiot is most likely to lose money while a smart person is most likely to make money.
Your co-worker is too absorbed in Musk's rocketships etc. So is a friend of mine. At the end of the day Musk is more concerned about the environment than profits. He isn't a guy I would bet on for a stock. Though I definitely admire him.