Wednesday, December 8

Amazon and the rest of the big tech companies, impassive in the face of the stock market falls


The pandemic of Covid-19 continues to wreak havoc on international trading floors, as shown by the collapse of the IBEX 35 during the session on Friday after the announcement of Austria a return to confinement for its entire population; But in the face of the uncertainty that surrounds multiple sectors within listed companies, large technology companies remain impassive.

Apart from surprises such as the one starring the manufacturer of graphics processors, Nvidia, which rose 8.25 percent during the day on Thursday thanks to the good health of its quarterly figures, the top 5 of US technology companies remains a safe value for analysts.

A sign of this good health can be seen in the fact that, on a black day for European stocks, Wall Street opened on mixed terrain mainly thanks to the rise in Nasdaq, which with 0.45 percent offset the 0.5 percent drop in the Dow Jones and the flat start of the S&P 500.

NASDAQ 100 (QQ)NASDAQ 100 (QQ)

174,901,07 %

16.482,90

Amazon leads the game

The giant created by Jeff Bezos and now led by Andy Jassy reigns within the benchmark index among technology companies, the Nasdaq. So far this year, Amazon has risen 17.5 percent to $ 3,700 per share (3,311 euros), and analysts do not expect it to decline.

Of the 60 analysts who have voiced their opinion on Bloomberg, 59 maintain the recommendation to buy the stock and 1 to hold it, with some prominent bulls such as Brian Nowak of Morgan Stanley, assigning it a price target of $ 4,000, second only to Eric J Sheridan of Goldman Sachs, which puts the price target at $ 4,100.

James Lee of Mizuho Securities It is one of the most pessimistic despite maintaining the buy recommendation, and gives it a price of $ 3,950.

AMAZON.COM (AMZN)AMAZON.COM (AMZN)

147,064,14 %

3.696,06

The reasons for the excitement about the stock market value are revealed by Poonam Goyal, of Bloomberg Intelligence, which predicts that Amazon may exceed a trillion dollars in gross merchandising value in 2024, boosted by the increase and normalization of online shopping during the pandemic.

AmazonThe analyst suggests, it could account for 16 percent of the world’s e-commerce by 2024, despite considering that the penetration of online product sales could moderate to 41 percent in 2025, compared to 51 percent. in 2020.

The company run by Andy JassyYes, it will have to face the intensive scrutiny of American and European regulators, while continuing to expand its cloud services business, and grow even more with the acquisition of new platforms and increasing its presence in different sectors.

Google follows closely

Alphabet, the matrix of Google, is another sure value that remains unchanged to the ups and downs of the pandemic. Its upline since the beginning of the year draws a 73 percent increase that places the former search engine turned king of the internet at all-time highs of $ 3,000.

From MorningstarHowever, analyst Ali Mogharabi considers the target price of the share to be $ 3,400, an appreciation shared with somewhat less optimistic forecasts Kevin Ortiz, of Research point, and Brian Nowak, from Morgan Stanley.

Each attributes a price of $ 3,156 and $ 3,200, respectively.

Google’s war with Amazon By controlling cloud services, however, it can be a risk factor affecting the long-term future of the company, which is exposed to the same regulatory effect as the e-commerce giant, as well as “risky initiatives in which the company is investing a large amount of capital, “according to the Ortiz report.

ALPHABET A (GOOGL)ALPHABET A (GOOGL)

35,831,21 %

2.996,77

Another untouchable titan and two companies with more doubts

One step below Amazon and Alphabet/Google are found, at different heights, Microsoft, Facebook (now known as Meta) and Apple. Each company, however, experiences a different situation.

Microsoft follows the triumphalist trail set by the leaders of the sector. Its share price stands at $ 341 after having risen 57 percent in value since early 2021. The most bullish views, such as that of Swiss credit, put the stock at $ 400, while the minus, such as JP MorganThey speak of $ 320 as a target indicator.

Robert Schiffman of Bloomberg Intelligence debates whether when analyzing fixed income from Microsoft it can be called “the best company of all time” in terms of credit rating, and aims for annual sales in excess of $ 220 billion by the end of fiscal year 2023.

AppleOn the other hand, it remains within the target price range of analysts, which varies from 140 to 180 dollars, with a market value of 159 dollars that implies a rise of almost 23 percent in the last 11 months. Its leadership within the mobile telephony sector remains indisputable, but may be affected by a contraction in device sales during the last quarter of 2021.

A reputational crisis that takes its toll

Among the 5 great technology companies, Facebook, which has recently changed its name to Meta, is the worst moment due to the reputation crisis caused by the leaks of the informant Frances Haugen about its practices, and its commitment to a metaverse that leaves doubts about how it will materialize.

The current share price of Facebook It stands at $ 338, and despite reputational ups and downs, it has increased in value 29 percent since the beginning of the year. Its future, even so, divides analysts, who leave target prices ranging from $ 250 to $ 445 estimated by Goldman Sachs y Wells Fargo.

James Lee, Analyst at Mizuzho Securities, leave this reflection on the company: “Facebook is following a roadmap similar to its success on social media, building a platform with tools to support an ecosystem of content creators and developers […] in addition, its metaverse will be operatovp with other apps, so the business is moving towards a type of open platform “.

Lee notes that for this strategy to work, Facebook you will have to develop a device that facilitates mass adoption of your metaverse, and to do so at a price accessible to all audiences.



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