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Podcast: Where Can Warren Buffett Find an Elephant?

Tesla stock more than doubled over the past three months. Pinterest stock jumps after positive news on its users. And FedEx could be a target for Warren Buffett.

Listen to Wednesday morning’s episode of our mini-podcast Numbers By Barron’s.

Three numbers to start your day:

And the stock has more than doubled over the past three months. The rally began after Tesla’s third-quarter earnings report in November. The electric car maker posted better-than-expected results, and gave Wall Street greater confidence in its future earnings power. Analysts are now modeling significantly higher profit for Tesla (TSLA) in 2020 than they were a few months ago.

And Tesla’s stock continues to be a battleground—with high short interest. Short sellers, of course, make money when a stock price declines—they borrow shares to sell them in the market.

But as Tesla stock has soared, the short sellers have been closing their positions by buying back those borrowed shares. And that has added fuel to the recent rally.

—according to eMarketer. It’s up 9% from a year earlier—and it’s more users than Snapchat (SNAP) has.

That would make Pinterest (PINS) the third-largest U.S. social-media platform, behind only Facebook (FB) and Instagram. Pinterest stock jumped 9.6% on Tuesday after eMarketer’s report came out.

Investors will learn Pinterest and Snap’s official user numbers when the companies release their 2019 results in a few weeks.

It is enough money to buy almost any company out there. And its CEO Warren Buffett has said he’s on the hunt for “elephant-sized” targets.

That war chest has spawned a cottage industry on Wall Street of guessing “What would Warren buy?” Lately, the logistics giant FedEx (FDX) has been coming up a lot.

And that’s a pretty good guess. Buffett likes businesses with good management and competitive moats. And FedEx stock is cheap right now, as fallout from the U.S.-China trade war has hit its shipping volumes.

Numbers by Barron’s is our daily podcast. Find out more here.

Write to today’s host Nicholas Jasinski at nicholas.jasinski@barrons.com

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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