Facebook is one of the most popular applications on smartphones, as well as the most desirable addition to investors’ portfolios. Indeed, this social network is the globally most popular stock among Saxo Bank investors, a Danish investment firm, in the first quarter of this year. This is despite the fact that the beginning of the year was very stressful for numerous companies listed on the stock exchanges, with some sectors experiencing a period of frantic sell-offs, leading the European Stoxx-600 index to record its worst quarter since 2009. As we enter the second quarter, the financial sector and stocks of companies in the consumer discretionary sector are worthy of investors’ attention, particularly Amazon and PayPal, which analysts at Saxo Bank believe will likely exceed expectations.
– The leading stocks on the global list and in the Central and Eastern European region among our clients are the stocks of Facebook, Google, Apple, and Amazon. These are companies with solid results over the past year, and investors continued to buy them in the first three months of this year. However, a certain correction has occurred as technology companies face challenges in the new economy, and opinions are divided on the prices and values of their stocks – comments Peter Garnry, head of the equity sector at Saxo Bank. He also adds that Facebook has not felt the market turbulence, as its stock price has risen by 10 percent thanks to excellent business results and continuous growth in advertising revenue.
In the consumer discretionary sector, analysts at Saxo Bank believe that Amazon’s stock presents an opportunity for a long position, despite its value falling by 11 percent in the first quarter, and they expect the price to exceed current forecasts in the coming months. They conclude this because Amazon’s cash flow ratio per unit of assets is improving again, following years of capital investments in supply centers. Additionally, Amazon’s revenue of $107 billion indicates the beginning of global expansion, and from the latest publicly available information, it is suggested that the company is seeking to implement vertical integration of its supply chain by incorporating its own transportation logistics to further reduce costs. These steps will only strengthen Amazon’s communication that they are the cheapest and most reliable retailer in the world.
