Victor Pedersen
Edited
Hello copiers! There are many crosscurrents going on at the moment and they all influence the stock market. We've entered a more volatile period, but we're still seeing economic growth, and this may continue to push the market higher. • Amazon’s Outlook Let’s get $AMZN (Amazon) out of the way first. The e-commerce giant recently reported its quarterly results. Revenue was $113.08 billion vs $115.06 billion expected. Amazon expects to bring $106 billion to $112 billion in revenue in the third quarter, which also missed analysts’ estimates of $118.7 billion. It’s not all bad and I think investors should take some time to appreciate Amazon's strong profitability. Net income in the quarter was $7.8 billion, or $15.12 per share. This was up from $10.30 per share in the second quarter of 2020 and easily surpassed analysts' average forecast for earnings per share of $12.30. And its ads business posted 87% growth! Amazon is still a force to be reckoned with in e-commerce. Indeed, with 27% growth on top of last year's 40% growth, it’s still relatively safe to call the e-commerce giant a growth stock. The price continues to stay within the same range but I believe patience will be rewarded. • Twitter is having a great year and the best is yet to come $TWTR (Twitter) reported great results with revenues of $1.19 billion vs. $1.07 billion expected, this resulted in an astonishing 74% year-over-year quarterly revenue growth. EPS also blew past estimates, reaching $0.20 vs $0.07 expected. Twitter is testing out “Shop Module” The Shop Module is a dedicated space at the top of a profile where businesses can showcase their products. Users can scroll through the carousel of products and tap through on a single product to purchase. And don't forget “Super Follows”. Twitter has always been used for content creators to promote their products elsewhere, but soon they will get a chance to sell directly at Twitter. My main reason for being bullish on Twitter lies solely on its upcoming features that are still in early stages of testing. The fact that Twitter posted great earnings even without its new and upcoming features, only reinforced my extremely bullish outlook. • China’s rollercoaster China has been leading the world throughout the cycle, they were first into lockdown, they were first out of lockdown, they were the first to see the reflation trade, they were the first to see value outperform growth, they were also the first to really see their rates come off and now you have China with growth concerns and some stimulus as well. China could very well be the leading indicator for slower growth in the second half of the year. Although if you follow the media, you already know the attention is focused on a different subject. In China, corporations have begun to feel the impact of rising restrictions regarding monopolistic behavior and new policies affecting online food delivery and education platforms. Chinese stocks sold off broadly after the central government confirmed its directive, among others, to turn after-school tutoring companies into non-profit entities. And the Chinese authorities earlier this week suggested that the crackdowns had gone too far, prompting a rebound in Chinese stocks. It's going to be a rollercoaster of mixed signals. I currently hold three Chinese stocks: JD, Tencent, and Alibaba. Despite being down over 30% from their all-time highs, I’m still confident in their long-term business outlook and ability to grow. Alibaba and Tencent are tactical picks to get some exposure, whereas JD ranks among my high conviction stocks. I’ve read nothing but innovative and good news about JD and I believe it’s currently being held back by the overall market sentiment. I will continue to monitor political activity in China and while I believe that China is still placing a high priority on innovation, in the short-term its government appears to be more focused on reining in big tech and equalizing the distribution of wealth. Impactful earnings: $SQ (Block Inc.) - August 2nd Square has laid the groundwork for future growth by building out two very strong commerce eco-systems internally (Seller and Cash App) and strategically acquiring a third (TIDAL). They recently launched Square Banking, and with their track record of execution, I am feeling optimistic that Square will deliver. $CRSR (Corsair Gaming Inc) - August 3rd How often do you find a stock that offers both value and growth? I believe it’s a good chance to get in before institutional investors fix their eyes on Corsair. Corsair is a winner in the gaming, e-sport and streaming space, and I expect the trend to continue. $U (Unity Software Inc.) - August 10th In short, I’d like to see better monetization across the board and I’m always curious to hear about their plans for the metaverse! That’s it for now! The discord server is ready, but I won’t open the gates until I have more time to spend on the community. As always, thank you for copying!
Like CommentShare
Show more comments18 of 93
9 replies
4 replies
8 replies
2 replies
1 reply
3 replies
1 reply
3 replies
1 reply
3 replies
1 reply
2 replies
11 replies
null
.