When TSLA and BABA stock fall should you buy them?

TL;DR

Verizon, Tesla, and Alibaba are all experiencing significant drops in stock prices, with each reaching 52-week lows.

Transcript

three stocks 52-week lows Verizon Tesla Alibaba Alibaba was down at one point today almost 19 last time I saw Tesla's down at one point to 204 52-week low and Verizon I don't look at Verizon anymore we looked at Verizon last year the thing I didn't like about it was the debt so let's check it out now and see if anything's changed right Moe yes Papa... Read More

Key Insights

• ✋ Verizon's high debt and unsustainable dividend yield make it a risky investment.
• ❓ Tesla's overpriced stock and questionable financials should be a cause for concern.

Questions & Answers

Q: What are the main concerns about investing in Verizon?

Verizon has a high level of debt, with a debt-to-free cash flow ratio of 31, which raises concerns about its ability to manage financial difficulties. Additionally, its unsustainable dividend yield is another red flag.

Q: Why is Tesla's stock considered overpriced?

Tesla's stock has a price-to-sales ratio of 9.6, which is significantly higher than the industry average for car companies. This indicates that the stock is overvalued, especially when considering the company's revenue sources beyond just cars.

Q: What has led to Alibaba's drop in stock price?

The recent drop in Alibaba's stock price is due to concerns about new economic policies in China. However, long-term growth prospects for the company remain positive, making it an attractive investment opportunity at its current price.

Q: Are there any potential bargains or investment opportunities with these stocks?

While there may be short-term opportunities to make profits from selling put options on these stocks, investors should carefully consider the long-term prospects and their desired entry prices before investing in any of them.

Summary & Key Takeaways

• Verizon's stock is down 3.5% with a 52-week low of $35.80, and its unsustainable dividend yield and high debt make it a risky investment option.

• Tesla is facing a drop of 3% with a 52-week low of $204. Despite analyst estimates and growth projections, the stock remains overpriced and unreliable.

• Alibaba has reached its predicted target of $58, experiencing a significant decrease due to concerns about Chinese economic policies, but it still holds potential for growth.