If the Tesla (TSLA) longs weren’t happy enough with the company’s 406% spike in the last year, CNBC’s “Options Action” bull argument on Friday was that Tesla — dubbed “the investment equivalent of crack” — is showing striking similarities to another high flying tech name, Amazon (AMZN).
“[T]here are analogs in life and this might be one of them”, market technician Carter Worth of Oppenheimer Asset Management said in its presentation. “So I want to start with Amazon. Obviously one of the great winners in the market. What I have done is gone back in time. This was a period where the stock was basing and it exploded in four months, essentially moving from $20 to $100, up about four and a half times. If you just burn that on your retina… I want to look at Tesla now. Same sort of circumstance where it bases and then also in a four-month period of October of last year to right now, this stock has moved from $30 to about $130. Exactly four months and four and a half fold. So both AMZN and TSLA, same formation, here they are. Here are are those dates. That’s kind of a remarkable thing, meaning when something’s brand new, no one’s quite sure what it is, what it’s worth and where it’s really going because it’s breaking molds and that’s what each of these stocks in a way is doing”.
TSLA is up $104, or about 307 percent year-to-date, putting the electric carmaker’s stock into a prime position on Wall Street and making it a favorite pick among growth investors.