logo
Why Is Wall Street So Bullish on Tesla? Here's the $1 Trillion Reason

Why Is Wall Street So Bullish on Tesla? Here's the $1 Trillion Reason

Globe and Mail6 days ago
Key Points
Some Wall Street analysts are ultra-bullish on Tesla stock.
There's one catalyst responsible for this bullishness.
These 10 stocks could mint the next wave of millionaires ›
Dan Ives, a notable analyst at Wedbush Securities, has a $500 price target on Tesla (NASDAQ: TSLA) stock -- the highest of any analyst. Why is he so bullish? It all comes down to a $1 trillion opportunity that he thinks should send Tesla's stock price soaring for years to come.
Ives loves Tesla's robotaxi division
When it comes to electric car stocks, Tesla is king. The company produces more electric vehicles than any other automaker in North America. But it's not vehicle manufacturing that has Ives excited. Instead, he's brashly optimistic about the prospects for one key division: Tesla's fledgling robotaxi business.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
"The vast majority of valuation upside looking ahead for Tesla is centered around the success of its autonomous vision taking hold with a key June launch in Austin," Ives wrote to investors earlier this year. Other Wall Street experts believe Tesla is kick-starting what should become a $10 trillion global robotaxi market.
While Tesla's robotaxi division will take years to fully play out, Ives is surprisingly bullish about its near-term impact. Ives believes Tesla "remains the most undervalued AI play in the market today." He anticipates a $2 trillion valuation for Tesla over the next 12 to 18 months -- double Tesla's current market cap.
To be clear, Ives is a clear outlier. The average Wall Street price target for Tesla right now is around $300 -- below Tesla's current trading price. But Ives and other analysts remain excited due to their expectations for Tesla's robotaxi opportunity. Tesla has the capital, manufacturing capacity, and brand name recognition to pull it off. But the timeline could be more stretched than Ives and others believe. Ives has dramatically increased and decreased his price targets in the past, so investors should conduct their own research and form their own conclusions.
Don't miss this second chance at a potentially lucrative opportunity
Ever feel like you missed the boat in buying the most successful stocks? Then you'll want to hear this.
On rare occasions, our expert team of analysts issues a 'Double Down' stock recommendation for companies that they think are about to pop. If you're worried you've already missed your chance to invest, now is the best time to buy before it's too late. And the numbers speak for themselves:
Nvidia: if you invested $1,000 when we doubled down in 2009, you'd have $447,134!*
Apple: if you invested $1,000 when we doubled down in 2008, you'd have $40,090!*
Netflix: if you invested $1,000 when we doubled down in 2004, you'd have $652,133!*
Right now, we're issuing 'Double Down' alerts for three incredible companies, available when you join Stock Advisor, and there may not be another chance like this anytime soon.
See the 3 stocks »
*Stock Advisor returns as of July 14, 2025
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Asian shares retreat after Alphabet and AI stocks nudge Wall Street to more records
Asian shares retreat after Alphabet and AI stocks nudge Wall Street to more records

Globe and Mail

time3 hours ago

  • Globe and Mail

Asian shares retreat after Alphabet and AI stocks nudge Wall Street to more records

MANILA, Philippines (AP) — Asian shares retreated on Friday after Wall Street inched to more records as gains for Alphabet and artificial-intelligence stocks helped offset a steep tumble for EV-maker Tesla. Japan's Nikkei 225 fell 0.7% to 41,511.09 after two days of gains following President Donald Trump's announcement of a trade deal that would place a 15% tax on imports from Japan. That's lower than the 25% rate that Trump had earlier said would kick in on Aug. 1. Data released on Friday showed the inflation rate in Japan's capital Tokyo rose 2.9% year-on-year in July, down from 3.1% in June. Japanese government efforts to moderate inflation are working, though underlying Tokyo price pressures remain elevated, ING Economics said in a commentary. It expects the Bank of Japan to hold interest rates steady at its July 30-31 meeting, but said the central bank would likely raise its forecast for inflation. In the Chinese markets, Hong Kong's Hang Seng shed 1.1% to 25,383.07 and the Shanghai Composite index slid 0.3% to 3,593.38. On Thursday, China and the European Union issued a joint call to action on climate change during an otherwise tense bilateral summit in Beijing riven with major disagreements over trade and the war in Ukraine. Next week, U.S. Treasury Secretary Scott Bessent has said he will meet with Chinese officials in Stockholm, Sweden, to work toward a deal with Beijing ahead of a tariff truce that expires on Aug. 12. Trump has said a China trip 'is not too distant' as trade tensions ease. 'One big question for markets is whether the tariff ceasefire is extended. We expect that an agreement will be attainable, but, in the interim, markets will watch closely to see if there are adjustments to current tariff rates in either direction,' ING Economics said. In South Korea, the Kospi picked up 0.3% to 3,199.91, while Australia's S&P/ASX 200 shed 0.4% to 8,673.80. Taiwan's Taiex dropped 0.1% and in India, the Sensex fell 0.1%. On Thursday, the S&P 500 added 0.1% to its all-time high set the day before, closing at 6,363.35. The Dow Jones Industrial Average fell 0.7% to 44,693.91, while the Nasdaq composite rose 0.2% to a record 21,057.96. Alphabet climbed 1% after the company behind Google and YouTube delivered a fatter profit for the latest quarter than analysts expected. It's leaning more into artificial-intelligence technology and said it's increasing its budget for AI chips and other investments this year by $10 billion to $85 billion. That helped push up other stocks in the AI industry, including a 1.7% rise for Nvidia. The chip company was the strongest single force lifting the S&P 500 because it's the largest on Wall Street in terms of value. But an 8.2% drop for Tesla kept the market in check. Elon Musk's electric-vehicle company reported results for the spring that were roughly in line with or above analysts' expectations, and Musk is trying to highlight Tesla's moves into AI and robotaxis. The focus, though, remains on how Musk's foray into politics is turning off potential customers, and he said several rough quarters may be ahead as 'we're in this weird transition period where we'll lose a lot of incentives in the U.S.' Stocks have broadly been rallying for weeks on hopes that President Donald Trump will reach trade deals with other countries that will lower his stiff proposed tariffs, along with the risk that they could cause a recession and drive up inflation. In other dealings on Friday, U.S. benchmark crude oil added 13 cents to $66.16 per barrel. Brent crude, the international standard, rose 12 cents to $68.48 per barrel. The U.S. dollar edged higher to 147.21 Japanese yen from 147.00. The euro fell to $1.1737 from $1.1748. ___

Nasdaq Q2 Revenue Jumps 13 Percent
Nasdaq Q2 Revenue Jumps 13 Percent

Globe and Mail

time5 hours ago

  • Globe and Mail

Nasdaq Q2 Revenue Jumps 13 Percent

Key Points - Nasdaq (NASDAQ:NDAQ) beat both GAAP revenue and non-GAAP earnings expectations in Q2 2025, posting double-digit growth in recurring revenues and non-GAAP operating income. - Record results in Market Services and robust client demand in both Financial Technology and Capital Access Platforms were key strengths this period. - The company raised its quarterly dividend to $0.27 per share in Q2 2025, updated its 2025 non-GAAP operating expense guidance to a range of $2,295 million to $2,335 million, and maintained its 2025 non-GAAP tax rate guidance, while highlighting increased investment costs and regulatory-driven sales cycle delays. These 10 stocks could mint the next wave of millionaires › Nasdaq (NASDAQ:NDAQ), a global technology company powering capital markets and financial services, reported its Q2 2025 results on July 24, 2025. The company delivered GAAP revenue of $1.31 billion and non-GAAP earnings per share (EPS) of $0.85, both surpassing consensus estimates of $1.28 billion and $0.81, respectively. Recurring revenue grew 9% and operating income (non-GAAP) grew at a double-digit rate, driven by strong client demand and innovations across both its Financial Technology and Capital Access Platforms. Overall, the quarter showed operational progress, though rising costs and lengthening sales cycles in regulatory technology signal areas to watch going forward. Source: Analyst estimates for the quarter provided by FactSet. Business Overview and Focus Areas Nasdaq operates at the intersection of technology and finance. It is best known for running the Nasdaq Stock Market, but its reach extends to providing trading, data, software, and analytics to financial institutions and corporations worldwide. Nasdaq manages and provides its products and services through three business segments: Capital Access Platforms, Financial Technology, and Market Services. The stack of offerings ranges from traditional exchange listing and trading to modern SaaS (software-as-a-service) platforms that help banks and corporates manage everything from regulatory compliance to market analytics and risk surveillance. Over the past few years, the company emphasized steady recurring revenue, cloud and AI innovation, and international expansion. Recent strategic focus includes deepening cloud integration, boosting cross-selling after its Adenza acquisition, and increasing the share of SaaS in its recurring revenue streams. Key drivers of success remain technology leadership, robust regulatory compliance capabilities, and the ability to attract new clients through innovation and trusted infrastructure. Quarter Review: Results, Product Momentum, and Segment Detail The second quarter saw Nasdaq achieve broad-based growth and notable outperformance across its main business lines. Revenue and Profits: The revenue figure of $1.31 billion (GAAP) represented a 13% jump over the same period last year. Non-GAAP EPS came in at $0.85, up 24% over the prior year, while operating income grew by 16%. Non-GAAP operating margin also edged higher, from 53% to 55%. This indicates that the company achieved greater efficiency, even as it invested in new technology and talent. Solutions Segment: Solutions revenue—which covers both Capital Access Platforms and Financial Technology—grew 10% year-over-year, with both core sub-segments making strong contributions. Financial Technology: This segment includes cloud-based risk, compliance, and trading solutions. It recorded 10% growth in revenue, with annualized recurring revenue (ARR) for Financial Technology growing 12% year-over-year. Regulatory Technology made progress with a new large client and several upsells, but did note extended sales cycles due to shifting U.S. regulatory timelines. Capital Access Platforms: This product line includes listing-related data, workflow, and index solutions. It posted 9% organic revenue growth, driven by a 17% rise in Index revenue. Net inflows into Nasdaq-linked exchange-traded products (ETPs) totaled $20 billion, and the number of ETPs tracking the company's indices increased sharply. Market Services: This unit, which comprises trading platforms and associated services, delivered a record $306 million in net revenue, an increase of 22%. Volumes across U.S. equities and derivatives hit all-time highs, and the company reported its 46th straight quarter of leadership in IPO listings, with 38 new operating company IPOs raising more than $3.5 billion. Market share for U.S.-listed securities, combining on- and off-exchange activity, hit 61.6%, up from 59.0% in Q2 2024. Recurring Revenue and SaaS Growth: Annualized recurring revenue reached $2.93 billion, which is 10% above the prior year. Of this, 37% now comes from SaaS products. Expenses and Margins: Operating expenses on a non-GAAP basis rose 9%, largely reflecting increased investments in technology and people. But with revenues advancing even faster in some segments, non-GAAP margins still improved. Product and Innovation: Technological innovation was a central theme this quarter. Nasdaq Verafin's 'Agentic AI' digital workers, now in beta, promise to automate compliance reviews and lower client workload. The company also expanded its partnership with Amazon Web Services (AWS) for cloud-based market infrastructure. Recent technology wins include managed marketplace deployments and cloud-based platform launches for clients in Latin America. Capital Strategy and Shareholder Returns: The company continued to emphasize a focus on organic growth and deleveraging after the large 2023 Adenza acquisition. During the quarter, it returned $155 million to shareholders via dividends and $100 million through stock buybacks, and repaid $400 million of debt. Management reaffirmed its goal of more than $100 million in annual run-rate cross-sell revenue by the end of 2027. Dividend Update: The company raised its quarterly dividend by 13% to $0.27 per share, continuing its trend of regular increases. Looking Ahead: Management Outlook and Watch Items Management maintained non-GAAP operating expense guidance, now at $2.295–$2.335 billion for FY2025, reflecting minor foreign exchange effects but otherwise an unchanged outlook. Non-GAAP tax rate guidance for 2025 remains at 22.5%–24.5%. No change was announced to medium-term revenue growth targets in any segment for FY2025, with leaders expressing confidence in the current sales pipeline, especially for Financial Technology products. No explicit top-line or EPS guidance was shared for the full year. Delays in regulatory technology sales cycles, driven by shifting U.S. regulatory timelines, present a risk to growth. Intensifying competition from both established exchanges and new entrants—like the Texas Stock Exchange—remains on the radar for listings market share. Overall, Nasdaq credited broad client engagement, cloud and AI innovation, and a stable recurring revenue base as tailwinds for future performance. Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted. Where to invest $1,000 right now When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor's total average return is 1,037%* — a market-crushing outperformance compared to 182% for the S&P 500. They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you join Stock Advisor. See the stocks » *Stock Advisor returns as of July 21, 2025

Altisource Q2 Revenue Up 11 Percent
Altisource Q2 Revenue Up 11 Percent

Globe and Mail

time6 hours ago

  • Globe and Mail

Altisource Q2 Revenue Up 11 Percent

Key Points - Revenue (GAAP) rose 11% to $43.3 million in Q2 2025, reflecting year-over-year improvement in Adjusted EBITDA across both major business segments. - Net income turned positive at $16.6 million, driven by an $18.5 million one-time tax reserve reversal for India in Q2 2025. - But underlying operating cash flow (non-GAAP) remained negative. These 10 stocks could mint the next wave of millionaires › Altisource Portfolio Solutions (NASDAQ:ASPS), a provider of services and technology for the mortgage and real estate industries, published its Q2 2025 earnings on July 24, 2025. The most notable news was a sharp swing to positive net income (GAAP), largely due to a substantial tax benefit from reversing reserves tied to prior uncertainties with Indian tax positions. Revenue climbed 11% to $43.3 million, up from $39.1 million in the same quarter last year, with adjusted EBITDA (non-GAAP) rising 23% to $5.4 million. With no available analyst consensus, it is not possible to gauge this quarter's results against Street expectations. Overall, the second quarter showed stronger service revenue and profitability compared to the same period in 2024, but the headline numbers were heavily influenced by non-operational gains and persistent cash outflows. Metric Q2 2025 Q2 2024 Y/Y Change Diluted EPS (GAAP) $1.48 ($2.33) $1.86 Adjusted Diluted EPS (Non-GAAP) $0.19 ($1.67) — Revenue (GAAP) $43.3 million $39.1 million 11% Adjusted EBITDA (Non-GAAP) $5.4 million $4.4 million 23% Net Income (GAAP) $16.6 million ($8.3 million) $24.9 million Business Overview and Strategic Focus Altisource is a specialized services and technology company concentrated in the mortgage, real estate, and loan origination markets. It offers a portfolio of technology platforms and business process services supporting mortgage servicing, property management, and mortgage origination. Key product lines include technology solutions such as Equator, a loan servicing platform, and RentRange, which provides data analytics for real estate investment. Its growth strategy depends on deep relationships with major clients, technology-enabled solutions, and effective management of debt and overall financial leverage. One customer, Onity, accounts for a substantial portion of revenue, leading to client concentration risk. The company also emphasizes innovation in software-as-a-service (SaaS) and automation, while actively managing debt and seeking opportunities in evolving regulatory and market conditions. Quarter Highlights: Revenue Growth, One-Off Gains, and Debt Moves During Q2 2025, Altisource saw service revenue rise 11%, supported by improvements in Adjusted EBITDA in both the Servicer and Real Estate, and Origination segments. Service revenue increased by $3.9 million year over year, Segment-level margins increased slightly. However, gross margin on service revenue dipped from 34% in Q2 2024 to 32% in Q2 2025 (GAAP). This decline occurred despite top-line growth. The most significant profit driver was the $18.5 million reversal of reserves related to uncertain Indian tax positions, including $9.6 million for taxes and $9.0 million for accrued interest. This non-operational item transformed the company's net income for the period; without it, adjusted net income would have been much lower at $2.2 million (non-GAAP). Excluding this effect, adjusted diluted earnings per share (non-GAAP) moved to $0.19 from a loss a year earlier, demonstrating improvement, but on a much smaller scale than the GAAP figures. Debt reduction and restructuring were also major features. After a term loan exchange in Q1 2025, long-term debt consisted of a $160.0 million senior secured term loan and a $12.5 million super senior term loan, compared to $232.8 million at the end of 2024, aided by a $12.5 million Super Senior facility and $45.4 million in equity issued in exchange for debt. Net debt (non-GAAP) at quarter end was $142.2 million. This reduction is expected to lower annual GAAP interest expense to approximately $9.5 million, creating future savings in cash flow and improving the balance sheet. The company also implemented a 1-for-8 reverse stock split on May 28, reducing shares outstanding and altering share price dynamics. Despite the positive headline results, operating cash flow (GAAP) remained negative at ($0.3) million for the quarter and ($5.3) million for the first six months of 2025. Negative cash flow from operations (GAAP) signals continued pressure on the ability to fund future investments internally, even as the company works to stabilize its financial base. Corporate and other segment losses offset improvements in the main business lines, underscoring ongoing challenges with cost discipline outside core operating units. No dividend was declared or paid during the quarter. ASPS does not currently pay a dividend. Industry and Market Context Market conditions during the quarter shaped Altisource's growth in important ways. The broader mortgage industry saw a modest pickup: foreclosure initiations were up 22% for the five months ended May 31, 2025 compared to the same period in 2024, but volumes remain well below pre-pandemic levels, with foreclosure initiations still 22% lower than in 2019 and foreclosure sales 51% below that benchmark for the same period. Mortgage origination volumes rose 14% for the six months ended June 30, 2025 compared to the same period in 2024, driven mainly by a 58 % jump in refinancing activity, while purchase activity fell slightly. However, management noted that the current environment remains 'close to historically low' in terms of industry delinquencies, continuing to constrain organic growth for foreclosure- and default-related services, as referenced in recent disclosures. The company reported some wins in new business during the period, estimating annualized stabilized service revenue from sales wins of $1.1 million in its Servicer and Real Estate business and $3.3 million in Origination. Technology remains a central theme, but the company reported no quantitative progress on platforms like Equator or in SaaS adoption metrics. Management continues to describe technology-enabled solutions as an area of focus, yet offered no new data to measure this area's contribution during the period. Regulatory factors impacted results through the tax reversal in India—removing significant uncertainty and legal overhang. Though management underscored that regulation remains an ever-present aspect of operating in the mortgage and real estate services sector. Outlook and What to Watch Management offered no explicit financial guidance for the next quarter or the full year. Executives highlighted their expectation that higher industry defaults and foreclosure volumes would boost results in Altisource's most profitable business lines. They noted a weighted average sales pipeline between $36 million and $44 million in potential annualized service revenue, with the majority of future opportunities likely to be realized in 2026 and beyond. The company remains focused on growing business lines with favorable industry trends, managing costs, and building financial flexibility following the recent debt restructuring. Investors may want to monitor whether operating cash flow can turn positive, how well sales pipeline wins convert to recurring revenues, and any changes in client concentration or major contract renewals. Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted. Where to invest $1,000 right now When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor's total average return is 1,037%* — a market-crushing outperformance compared to 182% for the S&P 500. They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you join Stock Advisor. See the stocks » *Stock Advisor returns as of July 21, 2025 JesterAI is a Foolish AI, based on a variety of Large Language Models (LLMs) and proprietary Motley Fool systems. All articles published by JesterAI are reviewed by our editorial team, and The Motley Fool takes ultimate responsibility for the content of this article. JesterAI cannot own stocks and so it has no positions in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store