Stock Picks
It's blast off, and 2022 is set to be another record year if the word on “the street” is anything to go by nowadays. The first week in Jan’22 has seen our EasyUSD investors going in heavy on tech stocks as these gems turn lower, giving better entry opportunities.
Let’s look at some of the most bought stocks in EasyUSD wallets as the first week of the year sets things in motion. Most USD Bought Stocks in the first week of January 2022:
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No surprise here as the electric vehicle (EV) giant posted record fourth-quarter deliveries, which saw the share price rise into the market close on Monday the 3rd of January 2022. The news undoubtingly saw investors look to capitalize on a rising share price to get in early in anticipation of possibly seeing another rally like in 2021.
Tesla’s innovation and strategy are second to none in the EV space and sustainable energy with its batteries. Its recent signing with Talon Metals Corp’s Tamarack mine project to supply nickel to Tesla in an environmentally friendly way comes as no surprise. Nickel used in EV batteries to bolster energy storage could see commodity prices soar over the coming years as popularity goes mainstream.
Outlook - Safety is still a primary concern after the nearly 500K vehicle recalls in late December, which should put a damper on the share price over 2022 if it continues. Although the "King of Meme" will continue to be favored, there could be better, more cost-effective options in the EV space which should continue to take market share from Tesla. This might still take years, but traditional automotive companies are ramping up production with VW, GM, and Ford's offerings, along with newcomer NIO set to lead the way.
“Metaverse” is the latest buzzword around town, and Nvidia could be leading the charge as our future alternate reality takes shape.
Nvidia Corp has been a firm favorite under the Easy investor crowd throughout 2021 as the visual computing company posted stellar earnings quarter after quarter. Despite the pandemic-driven supply chain constraints, the chipmaker has seen its share price double over the last year.
Semiconductors, dubbed "the new 'oil' of the rapidly digitizing global economy." by Bank of America, are indeed a scorching commodity despite the near-term macroeconomic headwinds.
Outlook – Rising interest rates, pandemic headwinds, inflation, and geopolitics could see semiconductor stocks set for a bumpy ride in 2022. Nvidia’s exposure to crypto could also play its part, but the favorite under the chipmakers has positioned itself very well. The company is seeing secular growth in gaming, artificial intelligence (AI), electric vehicle (EV), and now the metaverse, which should continue to boast well for the bottom line.
Records are meant to be broken, and Apple Inc has led the charge, becoming the first company in human history to reach the $ 3 trillion market capitalization mark. Steve Jobs said it best: “We're here to put a dent in the universe. Otherwise, why else even be here?".
The tech giant and FAANG constituent have diversified its product offering, and its growing services business has become a force to be reckoned with. The share price has been up more than 360% over the last three years, which makes it a no-brainer why Apple is a much-loved Easy investor stock.
Supply chain disruptions are still of concern, but robust consumer demand for Apple products should drive the share price success story even higher in 2022. The pandemic has fuelled demand for apple products as remote work, virtual learning trends increase, and more instore might occur.
Outlook – Tailwinds that can take the share price even higher in 2022 are new product offerings in new markets, which could bolster demand and opportunities across Apple's services division.
Virtual Reality (VR) products are on the table to be released along with a push towards the $77 billion by 2025 augmented reality (AR) market in line with the new metaverse.
Apple also has an enormous user base of over 1 billion people to which it can sell its growing array of service offerings. These offerings, including Apple Pay, TV+, Music, Fitness+, Arcade, News+, Podcasts, Books, have become extremely popular amongst Apple users. Services revenue surged to a staggering $68.4 billion YoY and is expected to reach $100 billion annually by 2025.
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Read: Into the Metaverse We Go
Sources –EasyResearch, EasyEquities, Tesla Inc, Nvidia Corp, Apple Inc, Reuters, Investor’s Business Daily, Koyfin, U.S. Chamber of Commerce, Joe Tenebruso, TipRanks.
Take note: USD wallet data 01/01/22 - 09/01/22.
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Barry is a market analyst with GT247, with a wealth of experience in the investment markets. Now in his tenth year in the markets, Barry "The Beef" Dumas brings a combination of technical analysis and fundamental insights to the table.
