Many investors, especially those who have invested in tech stocks, will be happy to say goodbye to 2022 in just over a month. Tech-laden after 14-year bull market Nasdaq-100 It has a firm grip on the bear market correction and is still down more than 28% year-to-date.
on the other hand, Dow Jones Industrial Average Despite returning to near breakeven (down 5% as of this writing), tech stocks are still in a funk. As much as it’s disappointment and pain, it’s also an opportunity — and not necessarily unjustified — because many of the top names in the space have been beaten. The company had issues indicating that it did not justify the transaction of
Still, it’s not fatal to long-term performance, so the new cheaper valuation is an opportunity to buy these otherwise great companies at prices that haven’t been seen in a while.
If you were drying some powder at a moment like this, and really, you should always have some cash available to take advantage of market mis-pricing like this.
With $2,000 waiting to be deployed, you can open or add your next position. apple (AAPL 4.86%) When Shopify (shop 10.04%).
Apple’s stock is down about 20% from its 52-week high and could clearly fall as China’s zero-COVID policy sparks protests in the country.
Workers at Apple’s iPhone factory in China, run by Foxconn, were seen rioting over work conditions due to the COVID-19 outbreak, clashing with police as the government ordered citizens to stay indoors are spread over many major cities.
It’s entirely possible that Apple will experience a shortage of iPhones, resulting in the tech giant missing out on next quarter’s earnings. Bloomberg reports that at a time when sales were seemingly softening, Apple could fall short of his 6 million iPhone Pro units due to production losses. iPhone sales of $14.6 billion last quarter fell short of analyst expectations, as did iPad sales, but Mac and wearables sales significantly outperformed.
Services, of course, are expected to be a source of future growth for Apple, with the tech leader saying paid subscriptions across all platforms rose 155 million in the quarter to reach 900 million. It’s also worth noting that Apple remains Warren Buffett’s largest holding. Berkshire Hathaway.
Dollar-cost averaging is useful for Apple because it can benefit if the stock price falls further as a result of the aforementioned, but as has happened many times before, Apple is more resilient than expected. Even if you prove that you own the stock. .
Online e-commerce platform provider Shopify lost more than three-quarters of its value as the pandemic’s boost faded.yet Adobe U.S. consumers spent a record $9.1 billion online on Black Friday, according to Shopify, with sales up 19% year-over-year on the day to a record $3.4 billion at constant currency reached. At its peak, Shopify was making $3.5 million in sales a minute, showing that retail isn’t dead yet. At least online.
Cyber Monday is also a big day, with Shopify hitting a record $7.5 billion in sales Friday through Monday, up 21% from last year on a constant currency basis, according to Shopify.
Shopify has gone from being just a tool that merchants can use to have an online presence to being a provider of a suite of tools that help customers manage their current environment.
With plenty of cash and access to short-term investments ($4.9 billion at the end of last quarter), Shopify can weather short-term headwinds with ease. E-commerce will continue to grow into the shopping channel of choice. This shows that the platform provider has a long growth runway ahead of it.
Rich Duprey has no positions in any of the mentioned stocks. The Motley Fool has positions in and recommends Adobe, Apple, Berkshire Hathaway (B shares) and Shopify. The Motley Fool recommends the following options: January 2023 $1,140 long call on Shopify, January 2023 long $200 call on Berkshire Hathaway (B shares); Long $420 call on Adobe Inc. Jan 2024, long $120 call on Apple Mar 2023, short Shopify $1,160 call Jan 2023, Jan 2023 Short $200 call to Berkshire Hathaway (B shares), $265 short call to Berkshire Hathaway (B shares) in Jan 2023, $430 short call to Adobe Inc. in Jan 2024, Mar 2023 $130 short call to Apple. The Motley Fool’s U.S. headquarters has a disclosure policy.