Amazon

  • 07 Dec
    The Delta Of The Delta – A Practical Approach To Growth Stocks

    The Delta Of The Delta – A Practical Approach To Growth Stocks

    • This market is all about growth stocks, so we should know what drives and how it impacts growth stocks.
    • With one example, I’ll show how the change in growth impacts a stock’s price.
    • It’s important to look at real growth possibilities as the market often gets extremely exuberant when looking at a few quarters with increasing growth rates.



    Introduction

    The current stock market is all about growth, and valuations don’t matter that much anymore. The question now is how to analyze growth stocks and what metrics to take into consideration when creating a risk reward model for any given growth stock. More →

  • 04 Aug
    Think The Biggest Companies Of The S&P 500 Will Outperform? History Says Otherwise

    Think The Biggest Companies Of The S&P 500 Will Outperform? History Says Otherwise

    • The strongest companies in the S&P 500 may look invincible now, but history shows us this won’t last forever.
    • None of the companies in the S&P 500’s 1980 top 10 are still there now.
    • Top 10 S&P 500 companies largely underperform the S&P 500 in the long term.

    Introduction

    Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), Amazon (NASDAQ: AMZN), and Johnson & Johnson (NYSE: JNJ) are the 5 largest holdings of the S&P 500 accounting for 11.74% of the index. The other 495 companies account for 88.26% of the S&P 500 which is a pretty strong imbalance, but that’s how the S&P 500 is formed. Its weightings are based on market capitalization. The bigger the market capitalization, the bigger the weighting in the index. More →

  • 23 Jun
    Does It Make Sense To Buy FAANG Stocks Now?

    Does It Make Sense To Buy FAANG Stocks Now?

    • With the exception of AAPL, all FAANG stocks have beaten the S&P 500 in the last 5 years.
    • By using Graham’s growth stock formula, I’ve determined the real value of FAANG stocks in order to see whether they are still a good investment.
    • Surprise, surprise, only one stock is overvalued, while some are still bargains.

    Introduction

    FAANG stocks—Facebook (NASDAQ: FB), Apple (NASDAQ: AAPL), Amazon (NASDAQ: AMZN), Netflix (NASDAQ: NFLX), and Alphabet, i.e. Google (Nasdaq: GOOG, GOOGL)—have been the clear drivers of the current bull market. And all but AAPL have significantly outperformed the S&P 500 index.

    The S&P 500 index is up 78% in the last 5 years, AAPL 73%, GOOG 228%, AMZN 334%, FB 389%, and NFLX a whopping 1,454%. More →

  • 03 May
    Think Only Brick & Mortar Retail Is In Trouble? Think Again.

    Think Only Brick & Mortar Retail Is In Trouble? Think Again.

    • The number of bankruptcies in retail is increasing and the probability of new bankruptcies is still high.
    • In the online environment, the competition is intensifying their efforts precisely at the moment when Amazon has finally reached some kind of profitability.
    • Price wars could make the whole online growth story a bad experience for investors. We’ll use Wayfair as an example.

    Introduction

    We’re seeing significant structural shifts in the retail environment where companies that were once considered blue chips are slowly going bankrupt, think Sears Holdings (NASDAQ: SHLD), while online retailer Amazon (NASDAQ: AMZN) is crushing it.

    The question many ask is: are retailers cheap now and online retailers expensive, or is it the other way around? To answer this question, it’s extremely important to look at how the competition in the online space will affect margins. We’ll look at some situations and try to come to the best option for your portfolio. More →

    By Sven Carlin Amazon Investiv Daily Retail
  • 10 Nov
    Why You Should Switch To Active Investing Now

    Why You Should Switch To Active Investing Now

    • PE ratios in the S&P 500 are all over the place; 7 of the top 20 stocks have PE ratios below 15, 7 from 20 to 30, and 5 above 30.
    • You can buy stable, growing businesses at PE ratios below 15, so why would you stick to passive investing and buying riskier stocks at PE ratios of above 20?
    • Maybe you think passive investing meets the definition of “boring,” something investors such as Buffett advocated. I don’t wish you the excitement of watching your portfolio fall from a PE ratio of 24 to a PE ratio of 15. Therefore, think about rebalancing now before it’s too late.

    Introduction

    Yesterday we discussed how the economy is doing well but that the market isn’t responding accordingly. This is because of the high valuations where only exceptional catalysts can push the market higher while any kind of negative news easily brings it into negative territory. However, by analyzing recent earnings, we have found large discrepancies among sectors in revenue and earnings growth. We understand this is normal for a well-diversified portfolio, but do we have to own more of the overvalued stocks and less of the undervalued stocks as a market capitalization weighted index fund does? More →

  • 09 Sep
    How To Spot The Next Facebook, Amazon, Netflix or Google

    How To Spot The Next Facebook, Amazon, Netflix or Google

    • Earnings aren’t that important but revenue and customer growth is essential.
    • The business has to have the capacity to grow without issuing stocks.
    • Timing is everything with growth stocks.

    Introduction

    “FANG” is the name that has been given to the elite group of technology stocks that includes Facebook, Amazon, Netflix and Google.

    These magnificent 4 have delivered astonishing growth. Since its IPO, Amazon has returned 52,491% (yes, you read that correctly) to shareholders. The other three haven’t quite been that extreme, but have still seen incredible growth, with Netflix returning 9,198% since its IPO, Google returning 1,429%, and Facebook 338%. More →

  • 29 Jul
    Corporate Earnings of the S&P 500’s Top 10: Why It Is Important for You

    Corporate Earnings of the S&P 500’s Top 10: Why It Is Important for You

    • Corporate earnings and fundamentals are variable, pick the stocks that best suit you.
    • There are low PE ratio stocks, high growth stocks, and high dividend yielders – anything you might want.
    • But be aware: some companies engage in buybacks that are detrimental to shareholders’ value.

    Introduction

    When you add up the top ten companies by weight, they account for 17.7% of the total weight of the S&P 500. For investors who are heavily invested in the S&P 500, following the earnings of its top ten companies is essential in order to understand the risks and rewards of being invested in the index. In this article we are going to assess the current market situation by looking at what has been going on with the 10 biggest companies in the S&P 500 index. More →