The big tech names have not had a great start to 2022. Netflix, for example, has seen its stock price drop 70% since the beginning of the year, while Meta (down 40%) and Amazon (down 33%) have been close behind.
Tesla shares have gotten punished this year too (down 29%), but the company still stands well apart from its tech peers when evaluated on revenue multiple basis.
In this chart, we illustrate revenue multiples (EV/LTM Revenue) for the FAANG stocks plus Tesla on a quarterly basis since 4Q18. As the chart shows, Tesla underwent a dramatic transformation in the market’s eyes from 2019 to 2020, improving from a valuation of 2.3x revenue in 3Q19 to 25.8x revenue in 4Q20.