The new investment portfolio for 2022 includes shares in 5 companies NVIDIA, Alibaba, AMD, Meta Platforms, Twitter. Our analysts forecast a portfolio return of 25% and recommend investing 80% of free cash in this portfolio, with the remaining 20% allocated to the IPO and other asset purchases.
NVIDIA | ISIN: US67066G1040 | Symbol: NVDA | Type: Stock.
NVIDIA is an American manufacturer of GPUs, chips for smartphones and computers. The developer is considered one of the largest in the world. In 2015, about 80% of all video cards purchased by manufacturers of equipment were from NVIDIA, and in 2016-2017 the company showed a sharp increase in sales and revenue amid the growing popularity of cryptocurrency mining. NVDA stocks showed stable growth - in the period from 2018 to 2020, they almost doubled in price. By mid-February 2021, the price reached $ 614.
For 3Q2021, the company reported a record revenue and net income of $7.1 billion and $2.97 billion, up 50% and 62% respectively. The company is poised for continued strong growth in the next few years with the launch of its next generation of graphics cards, as well as the expansion of its footprint in the data centre market. In addition, Nvidia products can be used to create technology for the Meta Platforms "meta-universe" - this direction is gradually gaining momentum.
Based on existing factors, Nvidia can continue to demonstrate an upward trend and high rate of revenue growth.
Alibaba | ISIN: US01609W1027 | Symbol: BABA | Type: Stock.
Alibaba Group is an online commerce company. The main platform of the company is Alibaba.com, additional ones are Taobao and Tmall. 80% of e-commerce in China is realized with the help of the main platform. The company itself does not produce goods and services, but is an intermediary: it works in the format of an auction, the products are made in China. The infrastructure of subsidiaries is used for cloud computing.
The Chinese government has taken a number of measures to reduce the impact of the IT giants, and many companies in the technology sector have yet to return to pre-pandemic levels. Alibaba is one of the main casualties of the situation. In November 2021, quotations fell by a further 17% due to weak Q2 2022 financial year results and the growth rate of its China Commerce business has also fallen significantly.
The stock trades at a significant discount to its peers and could be a good investment in the medium term.
Advanced Micro Devices | ISIN: US0079031078 | Symbol: AMD | Type: Stock.
Advanced Micro Devices, Inc. manufactures integrated microcircuit electronics. It is one of the world's largest suppliers of CPUs and GPUs and a leading developer of computer technology for the commercial and consumer sectors. AMD stocks have almost doubled in 2020 and continue to be of interest to private investors and funds. Among the major stocksholders of AMD is JP Morgan. AMD is Intel's most powerful competitor, second in the world in the microprocessor market. At the moment, the company is systematically expanding its stocks.
Intel's share is shrinking as the cloud providers Microsoft, Amazon and Google prefer to buy AMD's development. After the agreement with Meta Platforms, the IT giant's shares showed a significant rise.
Sales of Data Center processors doubled in the last quarter y/y, and the business already accounts for 20% of AMD's total sales. According to forecasts, this growth will continue in the next 2-3 years, which will be a new growth driver for the company.
Meta Platforms | ISIN: US30303M1027 | Symbol: FB | Type: Stock.
Meta Platforms Inc. is the largest social network in the world. Ranked among the five largest technology companies, along with Microsoft, Amazon, Apple and Google. The main assets of the corporation: social network, mobile application Facebook Messenger, Instagram and WhatsApp. The monthly traffic of online platforms exceeds 2.5 billion users. Facebook and Instagram are some of the largest advertising platforms on the internet. The scale and popularity of social networks make Facebook stocks a highly sought after asset.
The corporation created a special division, Facebook Reality Labs (FRL), which develops Oculus VR helmets and other VR/AR solutions. More than half of the increase in the total R&D budget has recently gone to FRL. Approximately 20% of the company's employees now work at FRL. Meta's management has decided to concentrate on the new direction while the current business continues to generate high cash flow. This decision could prove to be very successful in the long term.
Twitter | ISIN: US90184L1026 | Symbol: TWTR | Type: Stock.
Twitter Inc. Is an American company that has created a platform for the exchange of messages and the publication of short posts in the microblogging format. The service is available free of charge. The main office is located in San Francisco. The company has servers in the cities of San Antonio and Boston. Today, the social network unites the whole world, and the profit of Twitter Inc. for 2020 amounted to $ 1.29 billion. Twitter stocks were first listed on the stock exchange in 2013. Their price immediately increased by 85%.
Twitter's management is actively experimenting, adding new popular features, including competitors' ideas, and trying different monetization directions. This strategy is quite successful: thanks to it, the site not only keeps up with new trends but also selects different monetization options and thus tries to diversify income streams. However, not all new features are catching on. For example, Fleets, similar to Instagram Stories and Snap Stories, launched in November 2020, disappeared less than a year later (at the beginning of August 2021): the service's metrics showed no increase in audience engagement or the inflow of new users.
How to Buy Shares
If you don't have an investment account yet, open it now: this can be done online, in just 10 minutes. All you need to do is fill out a short form and verify your account.
Once your account has been opened, you can buy shares in any of the following ways, whichever is more convenient to you:
1. Freedom24 Web Platform: In the Web Terminal section, type the company ticker in the search box and select the company in question from the results. Open a secure session in the trading window on the right, select the number of shares you want to buy, and click Buy.
2. Freedom24 iPhone App and Android: Go to the Price screen and tab the search icon in the top right corner. In the search dialog that shows up, type the company ticker and select the company in question in the search results. You will then see the stock in the market watch; tap it and go to the Order tab in the dialog that shows up. Specify the number of shares you want to buy and click Buy.
Freedom Finance is a trusted stock broker offering over a million classic trading instruments (stocks, ETFs, bonds, futures options) through the Freedom24 online platform. It provides direct access to major US, Asian and European stock exchanges (NASDAQ, NYSE, CME, HKEX, Deutsche Börse, London Stock Exchange). Blue chips and promising startups. Tech giants from the S&P500 and Asian tigers. Dividend aristocrats and local players. Russian oil and gas industry and the German auto industry. Choose the stocks of the most reliable and fastest growing companies and add them to your portfolio in a couple of clicks.
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Usually, with the beginning of public trading on the stock exchange, the value of shares begins to grow. It is warmed up by traders who did not participate in the IPO. Lock Up is coming - a 93-day period of prohibition on the sale of shares purchased during the IPO.
During the Lock up period, you can lock in the price with a forward contract. It usually costs 10-15% of the current share price.
At the end of the Lock Up period, you can dispose of the shares at your discretion - leave it in your portfolio or sell it.
An IPO is a highly anticipated product and IPO shares are always limited, so it is important to upgrade your Freedom24 Client Rating before the IPO date in order to increase your IPO allocation and get more shares.
The easiest way to quickly increase your rating is to build a strong investment portfolio with Freedom Finance from promising stocks such as NVIDIA, Alibaba, AMD, Meta Platforms, Twitter.
Register on the Freedom24 platform and verify your account in 10 minutes now. It's easier and faster than opening an account on a social network or email.
Investments in securities always involve the risk of capital losses, and past results do not guarantee future returns.