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Holy smokes guys we got a couple very big stock moves today in a couple of very popular stocks both stocks i own okay one being tesla which i just read bought shares on friday and this one moved up over 8% a nearly eight and a half percent up over $22 per share today alone all right big move there and then alibaba which is a company i’ve been buying for the past
Month in plan to continue to buy throughout 2008 ii made a big downward move here today nearly four percent so about $6 per share this one moved down today and so we’re gonna talk about both these tesla the part of the reason why i moved up is a big analysts are you know bullish sign and analysts pointed out which we’ll look at in just a minute and also a big long
Shareholder of tesla a big name out there actually said that tesla’s board of director needs to be fixed or the company is doomed literally doomed okay would like go bankrupt so we’re gonna look at both those things in regards to tesla first off let’s talk about alibaba here so alibaba was in the news huge this weekend this was like the biggest news out there alright
So jack ma the executive chairman of chinese e-commerce giant alibaba has says he plans to step down in a year the news comes in a letter sent to shareholders of alibaba as well as customers following conflicting reports over the weekend on the timing of his exit’ so a lot of people first off are not very well educated on alibaba so many people i saw so many people in
The comments section of my videos this week and just in general saying the ceo of ali baba’s you know leaving the company oh my gosh well what does this mean this is such bad news when in wouldn’t in regards to alibaba jack ma has not been ceo of that company for years daniel zeng has been ceo of alibaba for years and years so i don’t know why people are saying the
Ceo of alibaba stepping down no the ceo the one in charge of the daily operations the the overall strategy of the company that is daniel zhang and he’s been in that chair you know that seat for years now okay since basically alibaba went public four plus years ago a mr. ma one of china’s richest men will hand over the reins to daniel zeng who’s currently the chief
Executive officer all right alibaba is one of the world’s most valuable companies and that shares had an amazing year last year mr. zhang who is 46 years old developed the company singles day promotion which is the world’s biggest one-day online retail event that’s a pretty good thing to have on your resume there you’re the one that created singles day mr. zhang
Will become executive chairman on september 10 2009 teen so here from now the company said in a statement the one-year handover period is aimed at achieving a smooth and successful transition all right mr. ma who is currently worth somewhere around thirty six billion dollars will remain a director on ali baba’s board until its annual shareholder meeting in 2020
He is a permanent member of alibaba partnership the world is big he says i am still young so i want to try new things mr. ma said the only the one thing i can promise everyone in that is alibaba was never about jack ma but jack ma will forever belonged to alibaba he said mr. zhang who has been with alibaba for 11 years has demonstrated superb talent since taking
Over as chief executive many years ago all right so my view on this is this shouldn’t come as a shock to anybody okay if you watch any interviews done over the past year or two with jack ma you’re gonna see that jack ma has talked many times about how he doesn’t want to be running the company when he’s old okay and he’s like 60 70 80 90 years old he doesn’t want to
Be running the company he said many times he plans on leaving alibaba he has never said a specific time but you he’d just like get a gist of the whole deal okay this gentleman plans to leave the company and so this shouldn’t come as a big surprise to anybody no would’ve came a surprise if he’s just like left tomorrow okay without announcing everything so one-year
Transition period but once again mr. ma has not been involved in the day-to-day operations of alibaba for quite a while okay i guarantee you he still has some vision for the company and he’s still kind of you know he rallies the troops and all those type of things and i think he’ll probably continue to do that as a part you know being on the board a director still
For years to come but you know he wants to go out and do other things and i respect that not everybody wants to still be ceo of their company at 80 90 years old and you know be a ceo that gets into a casket okay go from ceo title to casket title that’s what some people want to do they want to do that that’s fine that’s not what jack ma wants to do okay he said he
Wants to spend his last years on the beach or whatever he said it out there and whatnot well he’s still young enough to do it so i respect that and in terms of alibaba it doesn’t change they got a phenomenal management team over there they got a phenomenal business model so i have no plans to sell any alibaba shares i will continue to be a buyer of alibaba you only
Throughout 2018 i didn’t by alibaba shares just for jack mom by the way if you bought alibaba shares just because jack ma is part of the company like that’s a big mistake you should never just buy shares because of one person okay it should be because of a team of people that kind of takes me to tesla let’s talk about tesla now so tesla shares moved up huge stay
Following a pair of bullish reports this first report is garbage okay i don’t like it at all this person says we think tesla set up in the sentiment looks relatively favorable for the next few weeks at bernstein analysts in a note to clients on monday we now see the near-term risk reward for tesla as relatively skewed toward the upside given the potential the stock
Reverts toward the middle of the $270 to $370 range that part i hate because it’s just like just like short-term speculation like oh the sheriff’s could maybe go to between 270 and 370 over the next few weeks like that’s just short-term speculation crap i hate that okay i hate that type of stuff okay the next one is actually some valuable information okay an analyst
At bayer wrote and ag note on monday two clients after a tour of the company’s factory that gigafactory one creates a significant barrier for competition and manufacturing capabilities which should be a competitive advantage for tesla over the long run we believe tesla’s gigafactory enables the company to drive down costs through an industrialization of battery
Packed assembly and economies of scale 100% agree with this i think the gigafactory is going to be arguably the biggest competitive advantage tesla will have over the competitors over the next five to ten years all right i think that is you know it has been a massive cost for the company to build with the gigafactory i think as they continue to do that and build
Another giga factory in another giga factory it’s going to be a massive competitive advantage and a massive moat around the company i know elan lust doesn’t like to talk about competitive modes but in my opinion competitive moats are real okay you can’t just build another giga factory overnight these are things that take years and billions of dollars to pull off
I think this is a big competitive advantage i think that that analyst i think is actually you know a very valuable comment the other one just fat you mean the other one should just go on the strip and make predictions on and when you know what the dice will come up and down the next role or something like that or what the cards will come up on the next blackjack
Game that speculation game is nothing but speculation it’s just just stupidness okay stupidness so people think they can predict stocks in a short term you know no one’s ever done it successfully over the long term no one will ever do it successfully over the long term bottom line now let’s talk about this you know another shareholder who’s a lone shareholder
Okay jean monster came out he said if tesla doesn’t overhaul the board right now it could spell the end of the company all right first off here first off don’t do this write this guy off as a short sellers tesla stocks are a stock or bearish or something like that he is not he’s a long shareholder at tesla he believes in the company’s vision he says that if they
Don’t fix the board this company is doomed okay i think they need to make two moves with tesla i think they also need to fix the board okay get the whole organization right and i think they need a strong number two for elon musk okay when i look at something like facebook right facebook has a superstar ceo they got the zuckerberg okay but they also have arguably
The best number two in the entire you know corporate space okay in sheryl sandberg like that’s amazing all right and they just got a phenomenal company so as controversy come up it can just kind of roll off facebook where sometimes with tesla it sticks all right elon musk is a phenomenal talent this guy’s a phenomenal talent but in my opinion he absolutely needs
A stronger organization around him then sports this happens all the time you might be wondering why i wrote randy moss on the board back there i always bring things back to sports okay there are a lot of very talented people in sports one of them being randy moss okay his unbelievable receiver all right in 2006 with the oakland raiders this gentleman caught 42
Passes for 553 yards and three touchdowns he goes through new england patriots and next year a phenomenal organization and his duction goes off the charts he catches 98 passes 1,500 yards and 23 touchdowns which is our record in the history of the nfl and who knows if that record will ever be broken maybe someday it gets broken in the nfl and in sports all the
Time you have phenomenal talents sometimes these phenomenal talents get caught up into things sometimes they get caught up into drugs sometimes they get caught up in domestic violence sometimes they’re just hard to work with and noah you know and no one wants to work with those people because their personalities are hard to get along with they’re just drama there’s
Always something about them okay elon musk is a phenomenal talent but he needs a strong organization around him to really bring out the best in him and in my opinion tesla does not really have a super strong organization they got an ok organization they’re ok but they got one really you know super talented guy in elon musk a very special talent ok so when i look
At this they need to build out the organization so they have a new england patriots type organization ok the the if i was to say one company has a new england patriots type organization it is apple and if you wonder why apple continues to flourish all these years later after steve jobs has been long gone ok why this company continues to flourish and continues to
Grow is they got a phenomenal organization from top to bottom they have this phenomenal organization and they continue to flourish if tesla wants to get to that level they have to get a team around elon musk that can overlook him and take his talents to the next level and say dude dude cool it over here because the fact is elon musk has helped tesla stock price
Get to where it is and he’s also heard it in a major way and it’s a reason why it’s at the level it’s at right now ok if it wasn’t for elon musk in doing some of these antics i’ve got the truck company in a lot of trouble the stock price would likely be much higher than it is today however you know it doesn’t i don’t think it’s a big deal to go on on a podcast and
Smoke some so much smoke some pot ok i don’t think that’s a big deal however a lot of other people do and that’s what matters because you’ve got to understand tesla needs tesla shares to be a certain prices or they’re gonna have to pay massive loads of debt back ok if the shares are in around i think it’s around $360 come six to nine months from now like they’re
Gonna have to pay 920 million dollars in debt however if the shares are just over 360 incomes six nine months and from now the company doesn’t have to pay that debt at that time it’s a beautiful thing okay so which basically means elan i must stop messing up but it’s hard to just say that to somebody and then they just you know fix everything they need a strong
Organization okay so absolutely need to build off the board of directors they need a really strong number to at that company that’s really gonna take this on and say hey man i can do this okay i want a lot of money no different than you know sheryl sandberg gets ridiculous amounts of money she’s prepped by far and away in my opinion than the the highest paid number
Two in the world okay she makes more money than most big-name ceos you know who are the number ones a company make but she’s worth every dollar tests the needs that person okay because this company has an unbelievable opportunity in front of them but if they don’t execute and there’s this talented guy is just gonna be wasted no different than randy moss would have
Wasted on the raiders he catches three touchdowns in an entire season he goes in next year to a team with a great organization and he catches 23 and sets an all-time nfl record happens all the time and sports you know those talent just needs to have the right team around them the right organization and they can flourish they have the wrong organization and they’re
Gonna you know lead to their own demise and they’re not going to be able to achieve anything in life so that’s where we’re at with this one guys i think tesla needs a stronger team around them they can do that you know this company has all the potential in the world to reach very far out there alibaba once again i plan to continue to add shares i would love to hear
Your guy’s opinion on either one of these stocks either one of these companies anything we talked about here today i would love to hear from your opinion on that oh wait who’s the greatest receiver ever and then i felt i would love to hear from you guys that should be jerry rice who’s a number two best receiver okay who’s a number two thank you for watching have a great day
Transcribed from video
WHY ALIBABA DROPS AND TESLA POPS HUGE By Financial Education
