Tesla CEO Elon Musk and Meta Platforms CEO Mark Zuckerberg have been making headlines recently, but not for the usual reasons. It seems that these billionaire entrepreneurs are considering a physical fight, and the discussions have been progressing, according to the latest media report.
It all started last month when Musk replied to a tweet about Zuckerberg’s Meta Platforms potentially developing a rival to Twitter. Musk cheekily responded with, I’m up for a cage match if he is lol. Zuckerberg, never one to back down from a challenge, replied with a Send Me Location post on Instagram. Now, the New York Times reports that the two CEOs are in active negotiations for an exhibition match, with the Ultimate Fighting Championship’s Dana White producing the event.
While a cage match between Musk and Zuckerberg might be entertaining, it’s important for investors to remember that the real battle between these two lies in the stock market. Both Musk and Zuckerberg lead two of the most important companies in the world, Tesla and Meta Platforms, respectively. So, let’s take a closer look at how their companies match up in a face-off based on real fundamentals.
Surprisingly, despite operating in different industries, there are several similarities in the metrics of Tesla and Meta Platforms. For instance, both companies have had impressive stock performance. On Monday, Tesla shares surged by 7% after the company reported better-than-expected vehicle deliveries for the second quarter. This rally brought Tesla’s year-to-date return to 127%. Meanwhile, Meta Platforms saw a return of 138% over the same period. Additionally, their market values are also quite similar.
However, there are some notable differences when it comes to valuation multiples. Tesla has a much higher price-to-earnings ratio, which is partially justified by its faster growth rate. It’s worth noting that Tesla’s profit margin is likely to decline this year as the company focuses on its growth strategy through lower car prices.
Ultimately, it’s impossible to predict the outcome of a hypothetical cage match between Musk and Zuckerberg. But for investors, it’s crucial to focus on tracking the battle between their respective companies. While the idea of a physical fight between these two titans may be exciting, the real fight for investors lies in the stock market.
In conclusion, Musk and Zuckerberg’s potential physical fight may be grabbing headlines, but it’s the battle in the stock market that investors should be paying attention to. Both Tesla and Meta Platforms have shown impressive performance, and their valuation multiples highlight their unique growth strategies. So, let’s leave the cage match discussions behind and focus on the real fight that matters for investors.
