Welcome back to Meigu Cafe! Today we're diving into the latest developments for four prominent companies: Tesla, AMD, Apple, and Grab. Let's get started!
Tesla
Cathy Wood's Tesla Target Price
ARK Invest's Cathy Wood, often referred to as a "female godmother," recently discussed a five-year target price of $2,600 for Tesla. She also commented on Elon Musk's participation in a recent live-streamed "battle game" with Donald Trump.
Robotaxi Autonomous Project and Regulation
Wood expressed concern about potential regulatory impacts, especially considering the relationship between Musk and Trump. Achieving success in the autonomous vehicle sector requires government support.
ARK Invest is pushing for a state-by-state approach to Robotaxi autonomous project, allowing each state to decide whether to permit it on the roads.
Valuation Breakdown
Wood believes 90% of Tesla's $2,600 valuation will come from its Robotaxi platform (FSD), rather than electric vehicles or humanoid robots. She remains highly optimistic about this technology's future.
Humility in Investing
The host emphasized the importance of humility when evaluating investors like Cathy Wood and Warren Buffett. While their recent performances may be criticized, they are still incredibly accomplished. Investors should maintain a critical perspective but avoid arrogance.
AMD
Recent Stock Performance
AMD experienced a 5-point increase yesterday. Several analysts on Seeking Alpha have downgraded AMD's rating and target price. What are the factors to consider?
Seeking Alpha Analysis and M&A
The host discussed analyses from Seeking Alpha, pointing to one article titled "AMD Aggressive Merger and Acquisition as a Sign of Desperation," which had a "Strong Sell" rating. The article criticizes AMD's recent acquisition of server company ZT System, followed by its sale of the factory portion.
The host refuted the author's claim that AMD's management is questionable. He clarified that AMD was primarily interested in ZT System's technology and engineers, not its factories.
Valuation Concerns
Another article argued that AMD's valuation is too high. This analysis projected AMD's growth at 20% for five years, then dropping to 4% in the sixth year, resulting in a target price of $99. The host found the approach flawed, arguing that AMD's growth shouldn't suddenly drop off so drastically.
Advancing AI Event
AMD will host an "Advancing AI" event on June 12th, with CEO Lisa Su sharing the company's latest developments.
Apple
WWDC 2025 and Disappointment
Apple held its WWDC 2025 year-end developer conference yesterday. The stock price slightly dropped following the event, suggesting investor disappointment.
Lack of AI Breakthroughs
The event focused on software updates and optimizations rather than significant AI advancements. The development of Siri was not prominently featured.
Liquid Glass
The most notable new feature was "Liquid Glass," aimed at creating a smoother user experience and interface. While potentially appealing, this wasn't seen as a major breakthrough.
Valuation and Google Comparison
The host suggested that while Apple's features are good, its high valuation (nearly 30 times the original value with zero growth) makes companies like Google, which are making AI breakthroughs with cheaper valuation, a more attractive investment.
Grab
Lack of Recent Updates
Many viewers have been requesting updates on Grab. The host addressed this by announcing upcoming live streams covering the company.
Potential Acquisition of GoTo
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Indonesia's Sovereign Wealth Fund: Indonesia's sovereign wealth fund is considering involvement in Grab's potential $7 billion deal to acquire GoTo (GoJack). This indicates the Indonesian government's support for the merger and aims to address monopoly concerns.
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Debt Raising: Grab announced plans to raise $1.25 billion in convertible senior notes due in 2030 for "general corporate purposes," including potential acquisitions.
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Acquisition Speculation: The host believes the funds are likely intended to finance the GoTo acquisition, which would eliminate Grab's main competitor in Southeast Asia.
Is it Time to Sell?
The Indonesian sovereign fund's possible support suggests a positive signal for the acquisition.
Upcoming Events and Resources
Stay tuned for upcoming reports on Oracle, Adobe's financial report, Tesla's Robotaxi, and AMD's AI event. All resources, including investment models, brokerage information, and courses, can be found in the description below.
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