Stocks investment

Learning Team B

FIN/402

03/16/2020

Troy Mahone

The stocks in this portfolio are the following: PepsiCo, Apple, Microsoft, Aritzia, and Amazon. An assessment was conducted to establish if the stocks should remain in the portfolio.

Stock Reviews and Discussion

If I review the investment in PepsiCo., the business has reflected a slight decrease in the stock price, as being traded daily on the floor, the reason which we can assume is the over all market turbulence, being caused by the Oil market, and it is directly impacting US economy, and hence reflecting the same on the stocks trade in the market.

Apple Inc., stock has also reflected a bit decline as directly related to activities being performed in the market, more over the share is constantly moving the range of $30 up/down, being range bound, hence reflects that the business is performing well, and keeping at the place in the market. Citing Chinese government data, Reuters recently reported that Apple sold just 494,000 iPhones in the country in February. That was a steep decline from the 1.27 million units the company had shipped in the prior-year period and the two million units sold in January. The situation was bad across the board, as overall smartphone shipments fell 54.7% annually during the month, according to the China Academy of Information and Communications Technology.

Microsoft has reflected a steady decline, although it is not much material, and market expectancy is to correct it, I believe the more effect on Microsoft stock price down fall is related to news spread in the market, that Bill Gates is resigning himself, from the position of the President and leaving the board, market sentiments are attached to this news, but I believe in coming few months, business is going to show tremendous growth in the shares value. I feel that Microsoft offers many types of shares like mutual funds holders, individuals, stakeholders and other institutional shares. With these shares they are often bought and sold. The rates of shares range 42.14% to 6.18%.

Aritizia has shown some of the great moment during the last tenure, touching up the higher side and then again the lower side, is a mixed up reaction, as it moved between range of $200-250 in few days, the reason of such movement is overall market performance, the oil war, and the Corona virus worldwide economic impact. The current state of our society has resulted in a very volatile market. In times like these investors may be cautious towards putting their savings into stocks. However, this is also a good time to buy at low prices. ATZAF has seen a decline in market price over the past month, however a significant amount of that decline can be attributed to nation-wide panic. Most of the clothing inventory held by Aritzia comes from Vietnam. Countries in Asia are being hit especially hard by the virus and as a result North American companies are seeing experiencing breaks in their supply chains. The company itself if still strong and considered a good buy. Share price was at a lifetime high in February, immediately before the nationwide emergency was declared. Investors should hold what they have and wait to see if the price continues to drop, then purchase more. If the stock continues to perform how it did prior to the emergency, it could mean high returns for investors who buy during this period of falling prices.

Amazon has also reflected, just like all other stocks in portfolio, a slight downward trend, but yet has not taken up much correction, as the other stocks have taken, over all the stock is still in good and positive outlook. As of March 13, 2020, Amazon has a 6.46% (108.39) increase ($1785.00). According to Amazon Analyst Research Ratings, investing in Amazon common stock is a strong buy, with an average price target of $2430.54 (high estimate is $2700 and low $2150). In millions, the total value of holdings is $512,614, with the total shares outstanding being 498, with 57.69% being institutional ownership. The total institutional shares are 287,178,635 with 3,099 holders (Nasdaq, 2020). While the market continues to decline, online businesses like Amazon, continue to strive – shipping necessary items, straight to your front door!

Conclusion

The market overall is impacted because of world events, and still showing resistance to downward trends, the portfolio worth is slightly moving up/down, depending upon market sentiments, but this is clear that the over all market is being impacted by the Oil war, and the Corona virus global economic impacts.

We believe the portfolio is still healthy and will show related correction over the period of time.

References Nasdaq. (2020, January 9). Amazon.com,Inc Common Stock. Retrieved from Amazon: https://www.nasdaq.com/market-activity/stocks/amzn/analyst-research Deagon, B. (2020, March). Is Amazon Stock A Buy Right Now? Here's What Earnings, Charts Show. Retrieved from Investor's Business Daily: https://www.investors.com/news/technology/amazon-stock-buy-now/ Smart, S. B., Gitman, L. J., & Joehnk, M. D. (n.d.). Fundamentals of Investing. Pearson.