Today we are watching…
1. Amazon (#amzn)
Amazon hits $3K. There are some of us old enough to remember when Amazon hit a stock price of one thousand dollars, back in the olden’ days of 2017. This puts real distance between Bezos and Bill on the Forbes list; it’s a legendary e-commerce giant, but could there be a pullback? The big Bezos bet was on customer service. He wanted customer “obsessiveness” to keep him in business until he could reap all the pricing power from that loyalty in the late-game, to make mega-profits. But, you can’t be customer-obsessed and profit-obsessed at the same time. Investors need to get their timing right on this name. If Amazon is cashing out its customer loyalty, what comes after?
2. Citi (#citi)
The bulls and bears in markets have never been at loggerheads like this. We’re seeing stocks keep going up despite rising coronavirus cases, and the financial boffins at Citi think we’re in for more of this throughout the rest of the year. The bank recommends waiting for a dip rather than chasing the market higher, taking a “defensive tilt.” The bank also thinks that markets will be roughly in the same place they are now this time next year. This is great news for active stock pickers who can root out individual winning situations to beat a stagnant market. It’s less good for the passive index fund holders that stand to get beat!
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.