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Am I the only one who thinks the Wall Street is playing dirty? Right before the report they increase the expectations so tesla miss, if they wouldn't increase i

by Keloo 7y ago

Am I the only one who thinks the Wall Street is playing dirty? Right before the report they increase the expectations so tesla miss, if they wouldn't increase it that should be a beat, same with eps last quarter. It feels like they force the news headlines to be 'tsla miss'. Or maybe I'm a bit fanatic, please correct me if I'm wrong.

JumpCrisscross 7y ago
> Right before the report they increase the expectations Wasn’t the source of the 100k number Elon himself? Wall Street analysts were estimating below Elon (and the actual numbers). It looks more like investors ignored Wall Street and took Elon at face value again.
kevstev 7y ago
The way this would work is that people work out a target price based on that estimate, and the price should rise accordingly. In any case, they are only a few percent off, the fact that its a "miss" or a "beat" needs to be taken in accordance with magnitude. You are onto something though that a "beat" or a "miss," ever so slight, is generally followed by an increase or drop that tends to be excessive, but this tends to revert within a few days. Some stock pickers like to zero in on stocks that "beat by a penny" (per share) because that is often evidence of some kind of accounting shenanigans to just get over the line. I don't follow Tesla stock much, but it looks like there was a significant bump in mid September, perhaps on some of these earnings forecasts being updated, and now the price is just falling back in line with reality.
threeseed 7y ago
Musk said 100k. https://electrek.co/2019/09/26/tesladelivering-record-cars-quarter-elon-musk-leak-email/ https://electrek.co/2019/09/26/tesladelivering-record-cars-q...
jcfrei 7y ago
What's the incentive for Wall Street "to play dirty"? Analysts at investment banks need to retain good relationships with the CEOs of the companies (they are not allowed to disclose any market relevant non public information but it still helps tremendously with their work) as well as the investors (by making good forecasts and retaining them as clients).

by Keloo 7y ago

JumpCrisscross 7y ago

> Right before the report they increase the expectations Wasn’t the source of the 100k number Elon himself? Wall Street analysts were estimating below Elon (and the actual numbers). It looks more like investors ignored Wall Street and took Elon at face value again.

kevstev 7y ago

The way this would work is that people work out a target price based on that estimate, and the price should rise accordingly. In any case, they are only a few percent off, the fact that its a "miss" or a "beat" needs to be taken in accordance with magnitude. You are onto something though that a "beat" or a "miss," ever so slight, is generally followed by an increase or drop that tends to be excessive, but this tends to revert within a few days. Some stock pickers like to zero in on stocks that "beat by a penny" (per share) because that is often evidence of some kind of accounting shenanigans to just get over the line. I don't follow Tesla stock much, but it looks like there was a significant bump in mid September, perhaps on some of these earnings forecasts being updated, and now the price is just falling back in line with reality.

threeseed 7y ago

Musk said 100k. https://electrek.co/2019/09/26/tesladelivering-record-cars-quarter-elon-musk-leak-email/ https://electrek.co/2019/09/26/tesladelivering-record-cars-q...

jcfrei 7y ago

What's the incentive for Wall Street "to play dirty"? Analysts at investment banks need to retain good relationships with the CEOs of the companies (they are not allowed to disclose any market relevant non public information but it still helps tremendously with their work) as well as the investors (by making good forecasts and retaining them as clients).