NEW YORK (TheStreet) -- I sat down today to talk about high flying stock SolarCity (SCTY) today with Joe Deaux. TheStreet's energy editor. Solar City has become a great trading stock because of the justified hype surrounding one of its main backers, Tesla (TSLA - Get Report) CEO Elon Musk.But is it a great investment? That's the question I tried to answer for Joe in the video above. In a fundamental case for valuation, there is nothing that can justify SolarCity's extreme $2.6 billion market cap with only a yearly revenue stream of about $15 million. Indeed, in the last quarterly report, losses from SolarCity even eclipsed the worst fears of analysts surpassing $100 million. Yet, the stock continues to soar. All of this is because of the prophetic Elon Musk, who founded and sold PayPal to eBay ( EBAY - Get Report) for an astounding $2.1 billion as well as selling his second company, SpaceX, to NASA. It is rare in a generation to see a visionary like Elon Musk, and that wild card makes all the fundamentals of stock analysis somewhat moot in assessing whether SolarCity is in fact a good long term investment. I talk more about SolarCity and Elon Musk with Joe in the video above. At the time of publication the author had no position in any of the stocks mentioned. Follow @dan_dicker This article was written by an independent contributor, separate from TheStreet's regular news coverage.
More from Opinion
Cisco's Hiccup Is an Opportunity as the Stock Goes on Sale
Cisco's outlook disappointed. But given the company's market dominance, robust balance sheet and enticing dividend yield, buying the stock for the long term when the market seems fearful of the short-term prospects may prove to be a smart move.
Cisco Is Priced Attractively Ahead of Its Earnings Report
Despite challenges in the service provider vertical, Cisco continues to showcase strong business fundamentals. With valuations reaching a low point, this could be the time to own shares ahead of a potential post-earnings rebound.
Disney's Earnings: All Is Well in the House of Mouse
Disney's strong fiscal fourth quarter results provide evidence that the company is riding the right trends in high-quality content creation, direct-to-consumer media distribution and strong consumer discretionary spending.
Alphabet's Share Price Weakness Is an Opportunity to Buy
Alphabet shares pulled back after a third quarter earnings miss that did not accurately reflect the strong performance of the underlying business.