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Our article in late March can be read here.
microsoft
One of the actions we wrote about was a Microsoft document. There are many positives to note about the company: Much of the company’s revenue is tied to contracts or subscriptions, such as cloud-based Office 365, business management software, Dyanamics, or Microsoft’s cloud computing platform, Azure. During the global coronavirus epidemic, the company’s teamwork hub, Teams, grew at an unprecedented rate, with a new record of 2.7 billion meeting minutes recorded on March 31, a 200 percent increase from On March 16, with Teams for video calls, the increase was 1,000 percent in March. Meanwhile, Windows 10 is already running on more than a billion devices worldwide. The company’s balance sheet is solid, liquidity is not an issue, as it has $ 134 billion in cash, while its debt portfolio is less than $ 70 billion. Obviously, there are risks, as a result of expected corporate bankruptcies, the company may lose a significant number of users, and there may also be users who terminate their contracts and subscriptions in response to the deteriorating economic environment.
According to the latest recommendations, 32 analysts recommend the company’s values for the purchase, 3 holdings, there is no sale recommendation in the Reuters database, which means that analysts are particularly optimistic about Microsoft. The average price target is $ 186, which is 13 percent higher than the current exchange rate.
On March 25, when we wrote about the company’s shares, the price stood at $ 148, thereafter the price rose 15 percent to a high of $ 170, and closed at $ 165 on Thursday. Climbing to the previous local peak of $ 170 and then around $ 175 is the key.
alphabet
Regarding Alphabet, it’s worth noting that the company has a huge cash base of nearly $ 120 billion, which could make it resilient to the crisis and create new growth opportunities after the crisis. Another positive aspect is that the company operates with high profit margins, the net profit margin has been above 20 percent in recent years, which also provides a type of protection in a crisis. Obviously, there are risks too, much of the company’s revenue comes from ad revenue, the freezing of some ad budgets is obviously sensitive to Alphabet, and it is estimated that up to 40 percent of Google’s revenue could come from Online advertising revenue, which is now in a difficult position. travel, restaurants, traditional retail are related.
Despite the risks, analysts are particularly bullish on Alphabet, with 35 analysts recommending Alphabet stocks to buy and hold 4. The average price target is 1507, which is 25 percent higher than the closing price of the Thursday.
At the time of our March article, the Alphabet was at $ 1,130 and now closed 6.7 percent Thursday at $ 1,206. If the increase continues, the area around $ 1270-1300 could rebound.
Walt disney
At the company and in its shares, the streaming service, Disney +, is clearly a fantasy as the world closes, people spend significantly more time at home than before, and this is reflected in traffic from broadcast providers, Walt Disney recently reported that the number of subscribers to the streaming service exceeded 50 million. Of course, Disney also suffers from the coronavirus epidemic, the company also closed Disney parks in the United States, China, Japan, and France, and filming countless movies and series stopped, and it’s hard to estimate that if life returns to normal somehow, how many will cancel their Disney + subscriptions.
Analysts are optimistic, with 20 analysts recommending the company’s shares for 4 shares. Target prices average $ 134.7, 29 percent above the last closing price.
At the time of writing our March article, the exchange rate stood at $ 98, then rose 10 percent to $ 108, at the level we call a level worth seeing in our previous article (a major Fibonacci level Also), the exchange rate fell in one day on Thursday. Upwards, the most exciting levels range from $ 116 to then $ 123-124.
Netflix
Netflix is practically synonymous with video streaming, what there is now is fantasy (and risk), it is very similar to Disney, only there are no parks here, for example. The possibility of an increase in the number of users and, with it, the income, the risk in a prolonged epidemic is that many productions simply will not be completed or will delay production, premiere, in addition, many can cancel their subscriptions after the epidemic .
Analysts are more optimistic, with 27 analysts recommending Netflix stocks to buy, 9 to hold, 6 to sell. The average of the target prices is 369, almost as much as the last closing price.
When our March article came out, Netflix stood at $ 357, now 3.4 percent higher than it was then. Upwards, it is worth looking at the area between 385-395.
Amazon
Bulk sales have led to a worldwide surge in online sales, with the world’s largest online retailer, Amazon, also struggling to cope with growing demand, and the company announced this week that it is focusing on serving your own clients and close other clients. Recently launched service for UPS and FedEx. The story in the Amazon is that not only during the crisis, but beyond as well, the proportion of online retailers may continue to grow, and not just in the transition period until shoppers go to stores due to uncertainty, without doubt, but presumably later in the coming months. the number one food, health and household goods retailer may be Amazon in several countries, the company’s dominance may continue to grow for years to come (40 percent of the US e-commerce market). In addition, there is a story on Amazon about the Just Walk Out service, which is not only being introduced in its own stores, but is also offering it to the competition, it could be Amazon’s new billionaire business, and the crisis could accelerate the digitization of companies there. Web Services, the fastest growing and most profitable segment of the company.
Overwhelming optimism for analysts: 49 buy 2 retention recommendation. Target prices average $ 2,413, 18 percent more than the last closing price.
At the time of our last article, Amazon was at $ 1,940, and now 5 percent higher, exactly at the level we wrote about, worth noting, past peaks and bottom of a gap are very close to level. of $ 2,045. Amazon is very close to its all-time peak, so if the rise continues, the level around the peak is worth seeing, around $ 2,185.
Zoom Video Communications
This company and its stocks were added to the recent list due to the huge hype, but even then we highlight that it is a terribly expensive stock based on most price indicators. The company’s platform, which basically enables video-based communication, is also used by companies and individuals worldwide. According to many, the coronavirus changes everything, now the barriers on how companies will communicate with their employees and partners in the future are broken, the Zoom application can be a tool in this, the HD audio / video platform allows online conferences up to 1000 participants, Also integrated with Skype and Slack, Outlook, Gmail or iCal can be used to schedule meetings to meet the needs of even the largest companies.
In the past few days, there has been more negative news about the company’s video platform, Google has banned the desktop version of Zoom due to security concerns, Taiwan and Germany have also introduced restrictions, and SpaceX also doesn’t use Zoom. In response, the company is taking advantage of the services of a former Facebook security chief and is trying to repair the security holes.
Analysts are divided, with 7 purchases, 13 holds and 3 sales recommendations among the most recent for Zoomra. The average price target is $ 116.7 percent lower than the current exchange rate.
At the time of our previous article, the exchange rate was $ 144, now Zoom is more than 13 percent lower at $ 124.5. On the upside, it is worth seeing the level around $ 135, as well as whether the exchange rate is maintaining an upward trend.
Cover image: Ben Hasty / MediaNews Group / Reading Eagle via Getty Images
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