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Tesla Has the Highest PE Ratio Among the World’s Ten Largest Companies

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Tesla earnings

Using a stock’s price-to-earnings (P/E) ratio is one of the quickest ways to learn whether a company is overvalued or undervalued. If a company’s stock is undervalued, it may be a good investment based on the current price. If it is overvalued, then investor should consider whether the company’s growth prospects justify the stock price.

According to data presented by StockApps.com, Tesla has the highest PE ratio among the world’s top ten companies by market cap. Last week, the price-to-earnings ratio of the tech giant hit 473 or seven times more than the second-ranked Amazon.

Tesla`s PE Ratio Almost Halved in a Year

The PE ratio is calculated as a stock’s current share price divided by earnings per share in the last twelve months. A high PE ratio could mean a company’s stock is overpriced or that investors are expecting high growth rates in the future. On the other hand, a low PE can indicate either that a company may be undervalued or that it is doing exceptionally well relative to its past trends.

Although Tesla has the highest price-to-earnings ratio among the world’s ten largest companies, the YCharts data showed its PE ratio almost halved in the past year.

In October 2020, the PE ratio of the tech giant stood at around 875. By the end of the year, this figure jumped to over 1,300. In January, Tesla’s PE ratio hit an all-time high of 1,401 and then dropped to 680 by the end of June. Statistics show the company’s price-per-earnings ratio more than halved in the following week, falling to around 350 in the first days of July.

Although this value jumped to 473 over the past three months, that is still 45% less than the PE ratio measured in October 2020.

Far below Tesla, Amazon ranked as the company with the second-highest PE ratio among the top ten. The price-per-earnings ratio of the eCommerce giant stood at 58.1 last week, significantly down from 95.8 a year ago.

As the company with the third-largest PE ratio among the top ten, Microsoft saw its PE ratio slightly increase from 35.5 to 37.4 during the last year.

Health Equity the Company with the Highest PE Ratio Globally, 6,759 as of Last Week

Although Tesla has convincingly the highest price-to-earnings ratio among the top ten companies, the tech giant ranked on the thirty-eight place of the global PE ratio list.

According to MarketBeat data, HealthEquity has the highest PE ratio globally. Last week, the price-to-earnings ratio of the US health care company stood at 6,759 or fourteen times more than Tesla.

The US transportation manufacturing corporation, The Greenbrier Companies ranked second, with a PE ratio of 4,565.

American online retailer of pet food, Chewy, and medical devices manufacturers NuVasive and Tandem Diabetes Care close the top five list, with PE ratios of 3,273, 2,879 and 2,544, respectively.

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Nigeria to Expand Internet Access with 90,000km of Fibre Optic Cable

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In a bid to bridge the digital divide and enhance internet accessibility across Nigeria, the Federal Government has approved an initiative to expand the country’s internet infrastructure by laying an additional 90,000 kilometers of fiber optic cable.

The announcement was made by the Minister of Communications, Innovation, and Digital Economy, Bosun Tijani, who said the project will bolster national connectivity and optimize the utilization of existing submarine cables landed in Nigeria.

Tijani explained that the project will increase Nigeria’s fiber optic cable capacity from the current 35,000 kilometers to 125,000 kilometers.

This expansion positions Nigeria to become the third-largest terrestrial fiber optic backbone in Africa, trailing behind South Africa and Egypt.

The project will be overseen by a special purpose vehicle (SPV), a separate legal entity established to manage the implementation, finances, and operations of the fiber optics initiative.

Drawing inspiration from successful public-private partnership models like the Nigeria Inter-Bank Settlement System Plc (NIBSS) and Nigeria LNG Limited (NLNG), the SPV will ensure efficient governance and operations.

According to Tijani, the extensive fiber optic coverage will enable Nigeria to leverage the benefits of its eight submarine cables more effectively, thereby driving increased utilization of data capacity beyond the current 10 percent usage rate.

Moreover, the enhanced connectivity will facilitate the connection of over 200,000 educational, healthcare, and social institutions across the country, promoting inclusivity and broadening access to internet services.

The minister said the project aims to address the digital exclusion of approximately 50 percent of the 33 million Nigerians currently without internet access.

By expanding internet connectivity, the initiative is poised to contribute significantly to the country’s economic growth, with projected GDP growth of up to 1.5 percent per capita over the next four years.

Last week, a report by the Groupe Special Mobile Association revealed that 71 percent of Nigerians lack regular access to mobile internet.

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Biden Set to Quadruple Tariffs on Chinese Electric Vehicles in Defense of American Workers

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Electric car

President Joe Biden is preparing to quadruple tariffs on Chinese electric vehicles (EVs) as part of a broader strategy aimed at safeguarding American workers and industries.

The decision, expected to be announced imminently, reflects the Biden administration’s commitment to confronting perceived unfair trade practices and protecting domestic interests.

According to sources familiar with the matter, speaking on condition of anonymity due to the sensitivity of ongoing negotiations, the Biden administration will unveil measures to significantly increase tariffs on Chinese EVs and other key sectors.

The total tariff on Chinese electric vehicles is set to soar from 27.5% to 102.5%, marking a substantial escalation in trade barriers.

The impending tariff hike comes after nearly two years of review and deliberation, during which the Biden administration scrutinized the economic implications and strategic importance of various industries.

The decision to quadruple tariffs underscores the administration’s determination to address what it perceives as unfair trade practices that undermine American competitiveness and jeopardize vital sectors.

President Biden and his advisors have meticulously crafted the tariff measures, balancing the imperative to protect American industries with the need to avoid disruptions to the supply chain.

While specific details of the tariff adjustments remain undisclosed, the overarching objective is clear: to shield American workers from unfair competition and bolster domestic manufacturing capabilities.

The 2024 presidential race looms large over the flagship announcement, as Biden seeks to differentiate his approach to trade policy from that of his predecessor, Donald Trump.

While Biden is poised to largely renew Trump’s original tariffs, he aims to strike a delicate balance, eschewing widespread hikes that could trigger retaliatory measures and exacerbate global economic tensions.

The decision to quadruple tariffs on Chinese electric vehicles is not without its critics and potential repercussions.

Some industry observers warn of potential disruptions to supply chains and increased costs for consumers, while others question the effectiveness of tariffs as a tool for achieving broader economic objectives.

Nevertheless, the Biden administration remains steadfast in its commitment to protecting American interests and promoting fair and reciprocal trade practices.

By quadrupling tariffs on Chinese electric vehicles, President Biden sends a clear message that the United States will vigorously defend its industries against perceived threats and ensure a level playing field for domestic businesses.

As the announcement of the tariff escalation draws near, stakeholders across industries are closely monitoring developments and assessing the potential implications for their operations. With tensions between the United States and China showing no signs of abating, the Biden administration’s tariff measures are likely to further shape the dynamics of global trade and economic relations in the coming months.

Only time will tell how China will respond to the Biden administration’s tariff escalation and whether it will impact broader efforts to foster constructive dialogue and cooperation between the world’s two largest economies. For now, the stage is set for a renewed intensification of trade tensions, with the fate of American workers and industries hanging in the balance.

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ChatGPT Integration Set to Redefine iPhone User Interaction

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ChatGPT

Apple Inc. is reportedly finalizing an agreement with OpenAI to integrate the startup’s ChatGPT technology into its upcoming iOS 18 operating system.

This strategic partnership signals Apple’s deepening commitment to infusing artificial intelligence (AI) features into its flagship devices, promising a significant evolution in user experience.

According to sources familiar with the matter, who requested anonymity due to the confidentiality of ongoing negotiations, Apple and OpenAI have been ironing out the terms of the pact, aiming to seamlessly integrate ChatGPT capabilities directly into the iOS ecosystem.

ChatGPT, renowned for its advanced natural language processing and conversational abilities, stands poised to revolutionize how iPhone users interact with their devices.

The inclusion of ChatGPT in iOS 18 heralds a new era of intuitive and personalized interactions for Apple device users.

Leveraging the power of AI, ChatGPT enables natural language understanding, enabling users to engage in more fluid and contextually relevant conversations with their iPhones.

From answering queries and providing recommendations to offering assistance with tasks and even engaging in casual conversation, ChatGPT’s integration promises to elevate the iPhone’s functionality to unprecedented levels.

Apple’s move to integrate ChatGPT into its operating system comes amid a broader industry trend towards embedding AI-driven features into consumer electronics.

With competition intensifying in the AI space, Apple aims to fortify its position by leveraging cutting-edge technologies to enhance user experiences across its product ecosystem.

The impending announcement of ChatGPT integration underscores Apple’s strategic focus on AI innovation, a vision championed by CEO Tim Cook.

Cook, who has previously acknowledged using OpenAI’s ChatGPT, has emphasized the company’s commitment to deploying AI features thoughtfully and responsibly.

The forthcoming Worldwide Developers Conference (WWDC), slated for next month, is expected to serve as the stage for Apple’s grand unveiling of its latest AI-driven initiatives.

With rumors swirling about a flurry of new AI features poised to debut at the event, anticipation is mounting among tech enthusiasts eager to witness the next evolution of iPhone capabilities.

While the partnership between Apple and OpenAI represents a significant step forward in AI integration, challenges and concerns remain.

Chief among them are privacy considerations and ensuring that AI technologies are deployed in a manner that prioritizes user consent and data security.

As Apple prepares to usher in a new era of iPhone user interaction powered by ChatGPT, the tech world eagerly awaits the transformative impact of this landmark integration.

With the convergence of cutting-edge AI and Apple’s signature hardware-software integration, the stage is set for a revolution in how we engage with our devices.

Only time will tell how ChatGPT’s integration will redefine the iPhone experience, but one thing is certain: the future of smartphone interaction has never looked more promising.

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