5-Chart Friday (8/21/20)

By Charlie Bilello

21 Aug 2020


5 charts from the past week that tell an interesting story in markets and investing…

1) How Do You Like Them Apples?

Apple is now a $2 trillion company, adding $1 trillion to its market cap over the last year. $AAPL

Data via YCharts

How big is $2 trillion?

Who will be the first to $3 trillion? The results of a recent poll…

2) Tesla 2,000

Tesla hit 2,000 for the first time, two months after hitting 1,000. A year ago it was trading at 225. $TSLA

Data via YCharts

Tesla’s market cap is now higher than Walmart. Why is this fascinating?

Sales…

Tesla: $26 billion

Walmart: $542 billion

Net Income…

Tesla: $368 million

Walmart: $18 billion

Created in YCharts

Tesla’s market value is now higher than the combined market value of GM, Ford, Fiat Chrysler, Daimler, Ferrari, Honda, BMW, and Volkswagen.

Created in YCharts

3) The Stay-At-Home Economy

E-Commerce Retail Sales were up over 44% year-over-year in the 2nd quarter, the highest growth rate since 2000.

4) Housing Boom

The US Housing Market Index (a measure of homebuilder sentiment) hit 78 in August, tying the record high from December 1998.

5) Free Money

US Retail Sales hit new highs in July, a strange juxtaposition against the broader economic backdrop. But if there’s one thing we’ve learned this year, it is this: if you give the US consumer free money, they will spend it.

Unlike prior recessions, the stimulus money in 2020 has not just replaced lost income, it has enhanced it. Real Incomes are up significantly over the past year due to government transfer payments, and are expected to jump higher once again if the second stimulus bill includes another round of checks.

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And that’s it for this week. Thanks for reading.

Have a great weekend everyone!

-Charlie

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Disclaimer: All information provided is for educational purposes only and does not constitute investment, legal or tax advice, or an offer to buy or sell any security. For our full disclosures, click here.

About the author

Charlie Bilello

Charlie is the founder and CEO of Compound Capital Advisors.

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