The Big Three
I recently met with Kate Stalter, host of the MarketBeat Podcast to celebrate their 50th podcast episode and talk about three of my favorite companies to check out in the market: Amazon, Google, and Tesla.
Amazon
Amazon is a good company because they have a product we need now and in the future.
There's not even a close competitor that customers trust that their credit cards are safe stored with them and their products will be delivered on time. This is a company that will survive because not only do they sell everything you need... they sell everything you want.
As of the episode record date, Amazon was down to $105, which is where it bounced four times and then rallied back to $113. There's always a downside potential in which it could go back to that $105 price but the on up side, the first level is $146 and it goes up from there.
If you invested money into Amazon, you don't have to worry about losing it all. The only way for you to lose it all is if Amazon goes out of business. It does look like it's slowing down but we do need to consider the reasons why. Interest rates were low so a lot of people were shopping and spending money.
Companies were paying their employees more money, so there was a lot more disposable income available. Now people are getting laid off and it's costing more money to borrow, so we are getting back to our normal before the pandemic.
In my opinion, Google is in one of the best positions to emerge from this post-pandemic sell off.
Google has nothing to do with interest rates or gas prices so those aren't affecting them. Their biggest market is advertising and it's unlikely those budgets are going to drop significantly.
Even if a larger company wants to pull back some advertising funds on Google or YouTube, a smaller company may take advantage of those openings and they won't feel that loss.
Google also has their G Suite which powers so many businesses that many people do not consider when thinking about Google. Many people have a free GMail account, but not many of us realize the G Suite brings in revenue for Google too.
Checking out Google share prices, in February 2021 Google was trading around $100. After day's rally, they are trading at $102. Pre-pandemic, they were trading at about $76. Think about how many new companies are advertising with Google or adding G Suite to their businesses to keep their share price up and help them recover.
Tesla
Tesla is definitely a fan favorite.
People are considering buying Tesla's vehicles because they don't have to rely on high gas prices to get where they need to go.
Looking at the big picture, before the split Tesla was around $214 with a $225 support level. As of right now, they are hovering around $250 a share, so we are pretty close to that value.
We need to understand not only their growth model but the business coming ahead. We have to look at their future - so many automobile companies are planning electric vehicle releases in the next few years.
While they aren't the largest representative of the vehicle market as a whole, their plans to release an SUV and semi-trucks are going to be game changing. Think of the benefits an electric delivery truck will impact large companies in the future when they don't have to rely on gas.
There are so many untapped markets they can get into... boats, motorcycles.
Tesla also has a lot of products many people aren't aware of, including batteries. Imagine if Tesla is the next manufacturer of iPhone batteries...
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