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What is a better buy facebook stock our tesla stock that is what we are talking about here today guys this is going to be a fun one so many people over the past few months have thought about buying shares in tesla or thought about buying shares in facebook mainly because these two stocks have been in the news a lot facebook dropped huge after earnings it was a huge
Opportunity for people out there and then tesla shot up after earnings and a lot of people are looking at these two companies with everything going on and they have even contemplated buying one of these stocks so they’ve actually get done so i’ve in the past you know what is it two weeks now have bought tesla shares and about facebook shares so i kind of want to
Give you the viewpoints on six different categories we’ll go through and kind of give you my opinion on each of those which stock is a safer stock which stock has a better ceo which stock has a better team around them okay which ones are more disruptive company we’re also going to talk about the gain as far as what company could pull off a game changer type buyout
Of another company that could you know help their business propel in a massive way and then the last category which might be the most fun one which stock has the most upside potential that if everything goes great for that company over the next five and ten years what type of you know potential is it as far as the stock gain on it guys so i hope you really enjoy
This by the way let me know in that comment section if you own either one of these stocks or if you’re thinking about buying either one of these stocks i would love to hear from you guys as always down there in that comment section make sure you follow me on instagram if you have not already so let’s give you this guy’s the first category is safer okay whenever you
Go into making any investment you got to think about risk versus reward so in this category you got to think about it tesla is in a position where they do have some cash still left on that balance sheet but they got a lot of debt on that balance sheet still and they’re losing tons of money okay face book on the other hand has well over 40 billion dollars in cash
Just sitting on their balance sheet right now no debt massively profitable this one’s not even a close comparison okay never mind that tesla’s mainly thought about as a car company right now do they have an energy business yes but we’re not sure if that’s going to be profitable whereas facebook on the other hand has these ridiculous profit engines of the facebook
Platform instagram platform they have all the other platforms that have tons of users that they have hardly even tapped yet like messenger what’s happened what not it’s not even a close comparison between these two okay facebook is winning that category without question guys it’s really not even a comparison between the two which is very important good clean a set
Whenever you’re going to an investment you gotta think about what is my risk you can’t just think about the upside you also think what’s my risk with that investment okay which company has a better ceo now this one’s gonna be very controversial i love elon musk i really do i think that guy is definitely a visionary i think he’s pulling off some amazing things i
Think to get tests of the where it’s at now is it’s a very impressive feat okay however i do not put him above mark zuckerberg okay i know mark zuckerberg gets a lot of hate but this guy created a social media platform that has over 1.4 billion people on it all right then he goes in buys instagram for a billion dollars four or five years ago and makes that into a
Company that’s now worth over a hundred billion dollars how many ceos have been able to go buy another company and get a hundred x return on that investment within you know a four or five year span i can’t think of many okay guys this guy didn’t go to buys whatsapp for 19 billion that’s what you don’t work out a lot more in 19 billion now all right i got over well
Over a billion plus users on there so what i think a best ceo and never mind that with zuckerberg who’s built his company much bigger you we’re talking about it’s nearly you know it’s somewhere around eight to 10 times the size of tesa obviously the company’s massively profitable all those type of things so when i look at it i like elon musk a lot i really do i
Think he’s i think he is a good ceo does he screw up from time to time absolutely has zuckerberg screwed up maybe not in the same ways maybe the zuckerberg screwed up more behind the scenes but at the end of the day who’s a better ceo in my opinion it’s the suck okay mr. zuckerberg so you know instagram alone like you know what he’s done with facebook’s starting
That company out of his dorm room and to grow it to what it was and then buying instagram for a billion dollars they think of all the other companies that could have bought instagram for a billion dollars they just didn’t have the vision for it he had the vision for it now that’s a if that was a standalone company to be worth over a hundred billion dollars guys
And they just bought it four or five years it’s unreal what he’s been able to do they’re better team so on this one they’re in my opinion tesla has a pretty good team around them you know elon musk has a pretty good team around him but he doesn’t have you know if you’re considering him michael jordan he has no scottie pippin there okay he’s got some some pretty
Talented people and whatnot but zuckerberg has sheryl sandberg sheryl sandberg could run any company in the world in my opinion she could run apple she could run facebook she could run amazon microsoft it doesn’t matter she could run those companies successfully google she’s an amazing amazing second hand okay zuckerberg that also a great ceo for bringing her in
Very early on in my opinion she’s one of them she’s the most talented number-two probably in the world okay she’s probably the most talented number-two meaning the second in rank at a company probably of any public company out there alright guys so better team got to give it to facebook once again like i said you know tess has some good people but they don’t have
Sheryl sandberg okay that’s a different we were talking about different levels to this game okay different levels that’s scottie pippen over there more disruptive which which company is a more disruptive company so i would love to give this one a facebook but i can’t give this one to facebook facebook is very disruptive okay they’ve completely changed the the
Online space in in general you know with social media and you think about some of the apps some of the apps or websites we spend the most amount of time on as humans their facebook apps okay their facebook platform what they’ve been able to do is amazing they’ve changed the entire advertising industry okay from a tv and radio based model to now social media based
Model alright they fundamentally change a lot of things they’re doing some disruptive things in vr very disruptive company one of the most you know what are the top 10 most disruptive companies over the past let’s say two decades it’s unbelievable what they don’t pull up however i got a protest of them because tesla is changing or is changing to huge industries
And i haven’t been changed in a hundred years okay we’re talking about the automobile industry from being a you know internal combustion engines to electric vehicles and then on top of that we’re talking about there they’re gonna potentially change the entire energy system okay with solar roofs with the storage products and battery packs i can go people’s garages
And whatnot it’s amazing what that company has been able to do and you know as far as i disruptive already and what they’re pushing forward and it’s not just the fact that they’re pushing their company for it therefore they’re forcing every single company to try to keep up with them okay every single ice automaker out there right now it’s trying to keep up with
Tesla and trying to focus on on old man we need to get on this electric wave man we better get on this now okay they’re fundamentally changing some huge industries that haven’t been changed in 100 plus years and so for that reason i got to give the more disruptive category to tesla although once again facebook has done some amazing things away they’ve disrupted
The advertising industry and just the way us as humans interact with the internet and what not so more disruptive i’m giving it to tesla game-changer by out who is the potential to do a game-changer type buyout without question once again this one is facebook this isn’t even a close one okay basically this the situation we have is tesla basically has only enough
Money to keep themselves going right now okay they just focus on themselves facebook on the other hand they got 40 plus billion on that balance sheet with the next quarter – that will be up over sixty billion dollars so 60 billion just sitting in cash make a buyout you know 98 plus percent of companies out there if they want to okay and it made sense for them to
Do it and also it’s a company that’s proven that they could have a transformative buyout when they bought instagram when they bought whatsapp and whatnot facebook would be a very different company if we only thought about facebook as just a facebook platform we would not have the valuation it has on it guys it would have at least 200 billion dollars in valuation
Chopped off it would probably be around a three hundred billion dollar market cap rather than somewhere around a you know half a trillion dollar market cap where it’s at now so that’s something thing about their i mean clovis’s facebook and more upside you know everybody loves upside so which stock has more potential to go up more let’s say over the next let’s say
Over the next decade okay here’s my views on it facebook they have a lot more room to enable monetization not just on facebook platform but mainly i’m talking about instagram and whatsapp and messenger are gonna be huge things for the company in the future over the next 5-10 years okay so with that being said i can see facebook as being a 2 or 3 bagger over the
Say the next decade okay so i can see you know facebook being somewhere around 2 to 3 x as long as they you know execute on everything they do you could probably make two to three times your money over the next you know five to ten years tests on the upside on the other side wins the category overall because tesla has a chance to 10x this company if they execute
In the pull awful of things i believe they have the potential to pull off okay meaning they get massive amounts of market share we’re talking an iphone esque market share in north america okay so we’re talking about in 50% market share i think tesla is a great opportunity they pull that off and they also you know it’s being around the world they get market share
Around the world they don’t have to win around the world okay they can just get 10% of this market mention 10% or 15% of china long term and some of those markets like like apples being able to do i think that’s this type of company then you look on the energy side what this company’s gonna be able to do over the next decade is a really phenomenal sell the way i
See tesla i think this could be a 10 bagger over the next 10 years whereas facebook i definitely see something good upside there but it’s really only about a 2 to 2 to 3 bagger in my opinion as far as the upside facebook has so tesla does win that category so when you look at this ok you’re gonna see tesla win 2 categories more upside in more disruptive company you
Can see facebook win four categories game changer by um better team around and better ceo and safer so when you look at this you’ve got to view it two ways okay if you’re looking for more speculative play that has more upside then tesla’s probably your way to go okay however if you’re looking for for you know my safety over the next five to ten years if i put money
In it don’t look at the stock the next five to ten years which one’s gonna have less risk involved and it’s probably gonna be higher it’s probably got to be facebook at the end of the day okay so the way i view it it just depends on which one you’re looking for so which is why i bought tesla as my speculative stock and then i bought some facebook shares recently as
Just kind of you know another stock to have that if i need a lower cost basis on it but the original share the thing it was around 173 or 174 or somewhere around there but if it goes you know let’s say it goes into the 160s 150s all lower-cost bases on that whereas tesla i won’t i just bought tesla as my spec stock you know the eighteen thousand or whatever i’m
Holding that in tesla stock for the next five ten years we’ll see where that’s at so the different philosophy there so it really depends on which route you want to go you want to go more upside potential or you want to go with more risk or do you want to go with you know something that’s safer more sure bet over the next five ten years that you could stuff in the
Filing cabinet not even look at it guy so anyways let me know what your guy’s opinion down in there and that comment section is i would love to hear from you guys do you think facebook’s are better by tesla stocks are better by i would love to hear from you guys as always thank you for watching have a great day
Transcribed from video
TESLA STOCK vs FACEBOOK STOCK. 10x Return coming? By Financial Education
