Trading Signals 05/02 – 09/02
Stock Trading Strategy: Tesla, Amazon, Google
What is Tesla?
Tesla (TSLA), a trailblazing American electric vehicle maker, boasts a market value over $1 trillion, attracting keen investor interest due to its significant market presence and volatile stock performance. The company, known for its direct sales model, bypasses traditional dealerships, offering a unique network of charging stations and promoting clean energy.
Tesla operates as an automaker, energy solutions provider, and tech innovator, recognized for its electric cars like Model S and Model 3, solar panels, and advanced autopilot technology. Under Elon Musk’s leadership, who took the reins in 2008, Tesla, founded by Martin Eberhard and Marc Tarpenning in 2003, has become synonymous with the push towards sustainable energy.
What’s Attractive About the Company?
Tesla transcends typical car manufacturing, excelling in AI, robotics, and battery tech. Elon Musk sees AI as a key to Tesla’s future value surge. The company’s focus on Full Self-Driving (FSD) and the Dojo supercomputer positions it for breakthroughs beyond the automotive sector. Its energy storage business is highly profitable, and its extensive Supercharging network is set to generate more revenue as other automakers come on board.
What Factors Affect the Tesla Stock Price?
Technical indicators paint a bearish sentiment at the moment, yet there’s potential for TSLA to surge to $1,244.38 by 2025, as per extended trend trading analysis. Currently, it might not be the most advantageous moment for initiating new Tesla stock positions, given the volatility and the inherent risk of trading on a bearish stock market, which could lead to capital depreciation.
What is Amazon?
Amazon is an American company, the largest in the world in the fields of e-commerce platforms and public cloud computing in terms of revenue and market capitalization.
Describing Amazon’s business model is not a trivial task, as this global trading giant expands its presence each year, both geographically and in terms of the products and services offered. To illustrate the scale of the business, it’s noteworthy that while you read this article, Amazon has likely added about a million dollars to its revenue.
Brand Prestige: Ranks just below Apple in brand value.
Customer-Centric: Offers competitive prices and personalized services, building loyalty.
Innovative Edge: Constantly introduces new products and improves existing services.
Cost-Effective: Maintains low operational costs due to no physical stores and minimal inventory.
Wide Range: Provides an extensive selection of products, all in one place.
Strategic Partnerships: Features over 2 billion third-party products and collaborates with local firms for tailored delivery services.
Logistics Excellence: Renowned for fast and reliable delivery.
What Factors Affect the Amazon Stock Price?
In the second quarter of 2023, Amazon’s revenue exceeded market expectations. To make its shares more accessible for investment, Amazon executed a 20:1 stock split. Amazon became the second company in history to achieve a market capitalization of over one trillion dollars.
In 2023, the shares increased by 66.37%, and since the beginning of this year, the price has risen by another 9%. It can be said that the market is bullish, and technical indicators suggest the possibility of continued growth. It’s important to watch the support level at 143.30 and the resistance at 156.27. If the resistance is breached, the path to 170 could be open.
What is Google?
Google’s business model is a multifaceted platform. What started as a search engine company has evolved into a tech behemoth offering a plethora of services. Can you imagine today’s business, education, or entertainment without Google? Google has made the “Yellow Pages” obsolete, enabling users to find businesses in their city or across the globe with just a click.
Moreover, Google’s search engine has reduced the need for students to visit libraries, providing access to collections and files worldwide. Essentially, for any question that pops into our head at any time, we can simply pick up our phone and quickly search for the answer.
Google’s strengths lie in its dominant search engine, handling 70% of global searches, and its Android OS, running on 80% of the world’s smartphones. This positions Google as the top ad company globally. It capitalizes on its search and mobile prowess by integrating users into its ecosystem through apps like Maps and Gmail, which also help in tailoring ads. Additionally, Google earns from app sales on its Play Store. This strategy of offering free software, funded by advertising, sets Google apart from competitors like Microsoft, which depends on selling software.
What Factors Affect the Google Stock Price?
In 2023, the price increased by 65.77%. If the price can break through the $150.82 resistance, it might continue towards the record high. Conversely, if it breaks the 23.6% Fibonacci level downwards, the price might head towards the previous support at $141.99.
Many investors believe now is a good time to buy Google stocks due to the company’s strong performance, though it’s worth noting that the price could still drop.