Wall Street's 'Dean Of Valuation' Says Nvidia Stock Is 'Priced To The Point Of Insanity,' But These 2 Magnificent 7 Stocks Can Be Bought Right Now
Portfolio Pulse from Adam Eckert
Aswath Damodaran, NYU's 'Dean of Valuation,' criticized Nvidia's (NVDA) current stock price as excessively high, labeling it 'priced to the point of insanity.' Conversely, he highlighted Apple (AAPL) and Tesla (TSLA) as having the most attractive valuations among the Magnificent Seven stocks, suggesting they are good buys at current levels. Damodaran's valuation concerns stem from Nvidia's significant price relative to its earnings potential and cash flows, while he sees upside potential for Apple and Tesla.
February 07, 2024 | 8:45 pm
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POSITIVE IMPACT
Apple is highlighted by Damodaran as having an attractive valuation among the Magnificent Seven, with potential upside from current levels.
Damodaran's positive outlook on Apple, considering it a good buy at current levels, is likely to influence investor sentiment positively, potentially leading to an increase in Apple's stock price in the short term.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 85
POSITIVE IMPACT
Tesla is recommended by Damodaran as having one of the most attractive valuations in the Magnificent Seven, with recent share purchases underscoring his confidence.
Damodaran's endorsement of Tesla as a good investment opportunity, especially at recent lower prices, suggests a positive short-term outlook for Tesla's stock, potentially encouraging investor interest and driving up the stock price.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 85
NEGATIVE IMPACT
Aswath Damodaran criticizes Nvidia's stock as overpriced, suggesting its current valuation far exceeds reasonable expectations based on earnings potential and cash flows.
Damodaran's critique of Nvidia's stock price as excessively high, given its earnings potential and cash flows, suggests a negative short-term impact on investor sentiment and possibly the stock price.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90