Honestly, the last days or weeks have only been crazy in the American markets. First, the huge market sales have lowered the best of first -rate stock prices at the bottom of two figures (%). Yes, I’m talking about Microsoft, Apple, Google, FB, Amazon, Nvidia and AMD among several other quality choices.
Almost all youtuber, with millions of followers and huge channels / subscribers base envisaged a global recession /market accident obvious.
Then we had the results sessions, as always, it’s a series of good and bad days. While the markets applauded excellent Apple, Google, Amazon and Microsoft results; The results of Netflix and especially Meta (FB) were extremely bad. I still don’t think the results are so bad, to be honest, Meta has lost a 1m subscriber base in Na territory, but their ARPU elsewhere, including the United States and Canada, was significantly good. I agree with the point that the company and its family of applications have reached a saturation point with 3B + users in the world. But the action is now negotiated at less than 17 EPs, which, with income of 32b + per quarter, is extremely low. In addition, income between applications are consistent. I don’t think Meta will condemn or disappear.
Remember that Meta commands almost 20% of digital advertising revenues, then only for Google.
Going through other results, the 20: 1 Stock Split alphabet bought a lot of tumult from Jim Cramer to everyone. In addition, the results were crazy. The stock jumped ATH after the hours. The stock has since returned to 2,800 levels (from $ 3,000 +).
One thing to note here is that the market has no clear direction, from what I can see.
On the days, we have this percentage of huge gains, for example – the results of Alphabet, the results of Amazon (after an hour, I mean, enormous in fact of about 300 points), to correct later and in fact dive into subsequent sessions or the next day, abandoning all huge gains.
I have two points here:
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Does the increase / inflation of the Fed interest rates cause this dilemma of volatility on the market? Or
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Is the multiple high p / e of these mega-capital companies that seem crazy, which is in fact. Do we recognize that after the huge 2 years about 2 years?
While P / E from Microsoft is now at 32 ($ 305 per share), Apple is at 29 and Google at 25ish.
Amazon’s P / E is still at 50.
I mean, where are we going with these figures? I am as impatient as you, looking at the market. While Alphabet has abandoned all of his ATH gains results and $ 2800 exchanges, Amazon has a similar story. Apple is somehow loud above the levels of $ 170 and Microsoft is just more than $ 300 USD.
In addition, looking at Tesla, who is one of my other favorites, it seems to be negotiating comfortably between $ 850 and $ 950.
Hmmm, let’s see where it all ends. So what is your plan right now, are you holding money and are you waiting for the decline more, or are you DCA? (Cost to an average dollar your favorite actions)
In both cases, remember one thing, be it the actions mentioned in this post or the Blue Chips that you like, they will eventually acquire with valuation and strong foundations. So worry less and stop targeting for the funds, buy your favorite AAPL on the dips instead and stay strong.
To be clearer, please do not sell shares in red. You will only lose money when you press this sales button. The stock market will eventually recover and move north. The beauty of Blue Chips actions is that they will always win with the fundamentals they have, whatever happens, it’s more when.
If you ask me personally at these levels, which of the actions that I will be more interested / comfortable to choose, I will say everything – Microsoft, Apple, Google, Tesla and Amazon in the report below (out of 100):
Microsoft – 30
Apple – 30
Google – 30
Amazon – 5
Tesla – 5
And please, don’t get me wrong, I never liked FB or Meta Stock, I always preferred Google to Meta in all day. And Netflix I don’t like either. It’s just a personal choice. Meta and Netflix are also excellent actions.
Regarding the above notes, Microsoft, Apple and Google are extremely well diversified and the industry / sector leaders, hence the 30% of base points in each is where my dollar goes, with the remaining 5% each to Amazon and Tesla.
Although Amazon had excellent results, I always feel the company even with AWS at N ° 1 above Azure and Google Cloud, not a good investment compared to other Blue Chips discussed here, in this article. The reason is, Dollar Ralke again in the Amazon Premium subscription and an additional thrust to the consumption pockets. Just like inflation at a record level, with a premium subscription of $ 139 is just just Amazon? In addition, the EP is 50 years old, I do not think that Amazon action is appreciated enough, the growth expected at 50 times income for next year.
Continuing, Tesla is always risky with a potential for fantastic future growth, and Elon is a little crazy with her tweets overnight who disturbs the stock. Do not get me wrong, Tesla is a large revolutionary company, but with the risks and the spectacle to one man in Elon, it is a bit risky. I prefer to secure my money in MFST or AAPL every day.
Do not forget that the two most important measures of the action reports are the growth of the FCF (free cash flow) and the diversification of income. In particular recurring income / subscription. Apple earns almost $ 100 billion in cash or free cash flows each year. And the best part is that it is to grow in Yoy. Service income is what matters most in the balance sheet of course as well as product sales.
In addition, AMD has also had incredible results, its PE is currently 39+ again, so I also expect a kind of correction here. In comparison, although Microsoft’s PE is 32 years now ($ 300 course), I feel safe in investing, with all diversification / product services, and I am sure that my investments are safe, while with AMD, I am not yet fully convinced with the huge Intel expansion plans, to add more.
This is all for the moment, remember that the market is the place where money is earned, always buy low and sell long-term quality actions to create generational wealth, whether it is a company in which you believe. I believe in Blue Chips. It’s just me. And never sell quality stocks in red or do not exchange them overnight.
Thank you for reading! Bye now.
