The Big 3 Nasdaq stocks worth watching come market open

Before I start, I am obliged to remind our viewers that this is not advice only general commentary from my extensive research in this area.

NASDAQ has seen record-breaking highs this week as investors regain confidence in the security of American stocks. Amidst the success, Tesla (NASDAQ: TLSA), Amazon (NASDAQ: AMZN)and Apple (NASDAQ: AAPL)all experienced a healthy increase over the week. Making the NASDAQ giants worth watching when the market opens tomorrow. But let’s find out why?

It is no surprise that Tesla (NASDAQ: TLSA) reports yet another strong week, increasing 5.47%. From our last article on Tesla, we predicted that Tesla would experience some inertia and the market would correct them down to $650. The stock did not surge as low as we thought and actually recovered very well posting another green week. Aftermarkets suggest Tesla will bounce around $815-30 during the day, possibly getting as high as $850. Since market correction, Tesla is on track to grow into the $1,000 mark in the next couple of months. An entry below $800 may mitigate some systematic risk, however investing in Tesla now would be a long term strategy. With the risks involved, ensure you do your research and understand what systematic events could influence the price such as the up-coming election.

Amazon (NASDAQ: AMZN) climbs even higher this week growing by 5.29%. This is now the second week in a row, that investors have rallied behind this stock. It’s most recent earnings report was impressive, alongside capturing market share in the monetisation industry, the company has never looked so good. With markets at all-time highs, purchasing Amazon now holds much more un-diversifiable risk with PSE’s that can effect it’s price. However, if the market continues to rally behind Amazon, there’s a possibility of making a nice capital gain. In my opinion, Amazon may flatten out today as the stock begins to find its new equilibrium of $2,150. The biggest threat to entering Amazon now, is that it is hard to predict how long this rally will last. With buy volumes steadying, it is likely Amazon won’t bounce around too much come close Friday.

Apple (NASDAQ: AAPL)continues to support bullish and surprise bearish investors as it has jumped 1.24% over the week. Apple’s surge appears to be off their impressive 8% growth in iPhone sales in the first quarter of 2020. Apple’s Iphone sales in 2019 did not please investors. Meaning, the recent growth indicates Apple’s revival of the Iphone, arguably one of their most successful product lines. Moreover, the 17% rise in service revenue, iCloud storage subscriptions and the like, further adds to the investor confidence behind the tech giant.

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The information above should not be taken as financial advice. Youth Investment Group has no liability for personal financial interests or investment decisions. You should make your own investment decisions based upon your own research and what you believe is best for you.

 

Written by Patrick McLoughlin and Tyger Fitzpatrick

Amazon reaches an all-time high – is it too late to buy shares?

In recent weeks, the world has been closely watching the Tesla share price as investors rallied, pushing the stock into all-time highs before quickly correcting at $750. However, the E-commerce giant Amazon has also been smashing records this week getting as high as $2183.00 on Tuesday 12th of February. This has caused some concern whether or not it is too late to enter Amazon for capital gain in the near future. So let’s breakdown some fundamentals and formulate a concrete decision.

What is the Fair value of Amazon?

In some cases, when a stock becomes popular to the mainstream investor and a rally begins to build behind a stock – it can cause the stock to be overvalued. Stocks can be valued through different methods, some as simple as the Discount Cashflow method or using the P/E ratio. These methods are not very reliable, and should only be used in sequence with other methods and extensive research. However, to see if Amazon is overpriced it is worthwhile finding a fair evaluation. An article written by the Trefis team states “a fair value of $2,218″ for Amazon stock currently found on the Nasdaq website.

“Our Price Estimate of $2,281 for Amazon’s Stock is based on our Detailed Valuation Model for Amazon and implies an 82.7x P/E Multiple on expected 2020 EPS of $26.83.  Trefis Team

This indicates that there may still be room for growth and possibly a chance to capitilise on Amazon shares.

Internal efficiency and opportunity

Amazon beat it’s forecasted earnings report and in-turn created an opening for investors to get in before the stock was set to rise again. Amazon is internally exceptional, with a $1 Trillion valuation and more than 150 million Prime members it is hard to fault the E-commerce giant. Amazon have prioritised their profits effectively forecasting to save $2.3 billion in depreciation expense. The most exciting aspect IMO, is that Amazon is beginning to take Market share away from Google and Facebook regarding advertisement revenue. Amazon made $4.8 billion in Advertisement revenue in 2019 on it’s platform and poses a new threat to the Google/Facebook advertisement Oligopoly.

Evaluation

Before we evaluate the evidence and make a concrete decision, I am advised to ask all viewers to do their own research before making any investment decision. 

From both the valuation and looking at Amazon’s internal figures and opportunities in 2020, it seems that Amazon still has significant room to grow not only in 2020 but in decades to come. Evaluating today’s current price opening at 2,150.80 USD +16.89 . As an investor, I would be tempted at $2,060 USD however this price may not come around for sometime. I would this stock in your watchlist and find the exact price you want to enter with your own research and understanding of the markets.

Here is our free, uncomplicated, and extensive ASX portfolio

https://youth-investment-group.com/portfolio/

If you enjoy our articles or are wanting to learn more, you can subscribe to us for free via email and get updates when we post new articles. From all of us at YIG, thank you for the support.

The information above should not be taken as financial advice. Youth Investment Group has no liability for personal financial interests or investment decisions. You should make your own investment decisions based upon your own research and what you believe is best for you.

Written by Tyger Fitzpatrick, founder of YIG.