Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Tesla Motors Inc. (TSLA) And Netflix Inc. (NFLX) Suffering From Self-Inflicted Wounds: Dan Nathan

Tesla Motors Inc. (NASDAQ:TSLA) might join Netflix, Inc. (NASDAQ:NFLX) and, Inc. (NASDAQ:AMZN) on the downward movement in the market after reporting earnings on November 5 according to CNBC’s Dan Nathan. CEO, Elon Musk sentiments that the company might be overvalued continues to be a point of concern with analysts, especially on the fact that valuation aspects might have been disregarded.

Tesla Motors Inc (NASDAQ:TSLA)

Netflix, Inc. (NASDAQ:NFLX) continues to be severely punished in the market after missing estimates in its recent quarterly filing. An increase in monthly subscription charges saw the number of subscription decline considerably affecting the company’s revenues.

“These are kind of self-inflicted wounds by the company in Amazon and also in Netflix, but it got investors to wake up to certain issues about their financials,” said Mr. Nathan

The last time Netflix, Inc. (NASDAQ:NFLX) increased its prices, the stock sunk by huge margins until Carl Icahn got involved, and the stock found its way back. Netflix is to face immense competition going forward especially after HBO announced plans to start offering video content directly to customers.

Despite underperforming in the recent past, CNBC’s Michael Khouw remains bullish about Tesla Motors Inc. (NASDAQ:TSLA)’s prospects going forward. Khouw believes that Tesla will perform better in the long-term based on the fact that its vehicles are enjoying impressive demand in terms of orders from customers.

“Tesla Motors Inc. (NASDAQ:TSLA) has a little bit of capacity constrained it is not that they have demand problems for their product. You are expecting it to grow to a fairly ambitious valuation here, and it is hard to see how quickly you can do that. This is a capital intensive business you have to build plants, “said Khouw.

Tesla Motors Inc. (NASDAQ:TSLA)’s main challenge in terms of competition will come when other auto companies unveil their own electric cars into the market.

Warren Buffett and BillionairesFree Report: Warren Buffett and 12 Billionaires Are Crazy About These 7 Stocks

Let Warren Buffett, David Einhorn, George Soros, and David Tepper WORK FOR YOU. If you want to beat the low cost index funds by an average of 6 percentage points per year look no further than Warren Buffett’s stock picks. That’s the margin Buffett’s stock picks outperformed the market since 2008. In this free report, Insider Monkey’s market beating research team identified 7 stocks Warren Buffett and 12 other billionaires are crazy about. CLICK HERE NOW