Diamonds and Dogs

10/25/18

Tesla (TSLA) is making money. The battery car company is jumping 8% after reporting real profits. The drumbeat for Tesla going out of business should slow as the company reported earnings of $312 million verse estimates of a loss of $169 million. Free cash flow came in at $881 million and the company is targeting profitability and positive cash flow every quarter going forward. At least four upgrades with price target of $396, $400, $418 and $430.

Another chip company bites the dust. Yesterday the dog was Texas Instruments. Today it's AMD (AMD).

AMD is down 16% at a three month low following earnings. The company actually beat earnings estimates as sales rose 4.4% year over year to $1.65 billion. It was AMD's fifth straight quarter of year-over-year revenue and net income growth. But the company lowered guidance for the fourth quarter. AMD received at least five downgrades, but a few analysts defended the stock saying the overall bullish theme is not broken, just another cyclical swing in the wrong direction.