Hello everyone, and welcome back to Investing with Antoaneta. Before we dive in, I just want to throw out a quick reminder to like the blog, leave a comment and share it with your friends if you enjoy my content and want to see the platform grow. It really helps with staying ahead.
Today, we’re having a look at my personal stock favorites for June. And, I’m going to tell you right away that all of the companies that we’re going to talk about today are tech-related (in one way or another). We’ve looked at most of them in a previous blog (I’ll leave the links in the description below the blog), so today, I’ll just give you a quick rundown on what they do and why I chose them.
So, let’s get started.
Here are my Top Five Stock suggestions for this month:
And, if you stick with me until the end, I’ve got a really interesting bonus stock for you.
Now, Adobe is a company mostly known for its software products like Adobe Acrobat (the PDF reader I’m sure most of you are using), Photoshop, Adobe Flash, and dozens more. Their revenue comes from three major segments — media (68% — 72%), experience (about 25ish percent) and publishing & advertising (the remaining 4% — 7%).
Here’s why I like Adobe:
Current financial stats
I’ve got three words for you: Casual Mobile Gaming. It’s … big. If you thought that the big money is only in PC gaming or consoles, think again. Casual Mobile games are incredibly popular, and their combination of micro-transactions, ads, and massive networks bring in tons of revenue. And the lockdowns were exceptionally kind to Farmville’s creators because the company reported a record-breaking 85% increase in active users year-over-year, with their monthly active users going up by 139%. As a result, you’ve got a revenue increase of 68% and net bookings increase of 69%. Advertising revenue was also up by a substantial 108%, and Zynga recently announced the acquisition of the mobile ad platform Chartboost. They did have a slight (and expected) hiccup at the end of the quarter and finished at a loss, but it was much lower than the initial predictions.
Here’s why I like Zynga:
Current financial stats
Crowdstrike, ticker symbol CRWD, is a cybersecurity provider based in California. And, if I run them by my quick “tech stock checklist”, they certainly tick all of the boxes. First of all, they’ve got a really interesting “proactive” approach to cybersec, where they use pattern analysis to detect “suspicious” behavior and act before it becomes a real threat. And, yes, I know that I’m oversimplifying things and that this isn’t exactly a new concept, but they’ve been doing a fantastic job so far, and their work has also been recognized on an international level.
Reports-wise, they ended 2020 on a really high note with revenue growth of 82%, along with gross and operating margin expansions across the board. Management is expecting to add another 50% revenue growth in fiscal 2022, and with all of the recent buzz around cybersecurity, I’m very positive that they could get there.
Current financial stats
I will be releasing a blog about Amazon in a few days, and I will be analyzing only Amazon, I think they deserve a dedicated blog, so for now and, well, things are looking as fabulous as ever for them.
Here are my key takeaways: 1`
- Great fundamentals — Amazon is one of the few companies out there that has consistently put out amazing numbers year after year. Over the last five, Amazon went from $700 all the way to $3200+. They’re always growing, always expanding, and always reinvesting back into the business.
- Growth, growth, and more growth — Reported profit is up 84%, and revenue is up 38% year-over-year.
- Solid Management — even though Bezos is stepping down, the new CEO will be none other than the person behind AWS (the service that makes up almost 60% of AMZN’s operating income)
- Solid diversification — On top of e-commerce, Amazon is also big into the cloud (AWS holds about 32% of the global cloud market), Digital Advertising (US market share already into the double digits), on-demand streaming (Prime Video), and even gaming (Prime gaming).
- Lots of room to grow even more — There’s massive demand in every field that Amazon is involved with, and the markets are largely untapped (just a tiny portion of retail purchases are done digitally — 7.5% for the US and 14.5% for the UK). And, obviously, there’s almost infinite demand for streaming, gaming, and advertising.
Now, I know that Coinbase is a bit of a controversial stock for many investors, but hear me out, okay? When it first went public, it was selling for about $320, and then, just two days later, it briefly went for $429. Now, less than two months later, it’s sitting at 230ish.
This must mean that it’s a bad stock, right?
Well … no. Not in my opinion, at least.
Anyway, here are some highlights from their quarterly report:
- Verified users: 56 million (up from 43 million Q4 2020)
- Monthly Transacting Users: 6.1 million (up from 2.8 mil Q4 ‘20)
- Trading Volume: 335 billion (up from 89 billion)
- Assets on the platform: 223 billion (up from 90 billion)
- Net revenue: $1.80 billion (up from $585 million!)
- Net profit: $771 million-plus (four times higher than their Q4 numbers … and 24 times higher than the previous year’s Q4 profit)
And, yeah, if you compare last quarter’s results to the ones they had during the first quarter of 2020, you will see exactly why I believe in this company long-term. They’re already pulling some incredible numbers, and crypto isn’t even fully “accepted” by the general public yet. It’s still picking up speed.
They didn’t even have dogecoin available on the platform at the time of the report.
I’m going to keep adding to my position, and, of course, I’m sticking to my incremental approach. I’ll keep building my position bit by bit because I’m almost certain that it will keep dropping. I expect that it will eventually go as low as $150ish or maybe even lower. And Cathy Woods also warned about this — she said that there’s going to be massive volatility around Coinbase. Still, she is also very optimistic about this stock, and she’s also buying.
Oh, and don’t think that I’ve forgotten about the bonus stock — it’s coming right up. This month, it’s going to be Jay Chaudhry’s Zscaler.
Bonus stock: Zscaler
Last Wednesday morning, Zscaler stock was up 12%, and if you’ve had a look at the cybersec field recently, you’d know exactly why that is.
Zscaler is a software-as-service security company based in the US. They provide secure cloud infrastructure to businesses and organizations without any on-site requirements. Or, in other words, they “take the hassle out of computer security”. Considering all of the fuss around corporate security recently, that is a pretty solid selling point if you ask me.
And, of course, they’ve got some great numbers to back it all up. Zscaler has demonstrated an excellent ability to grow during the lockdowns. Their latest revenue reports show a 60% increase in revenue year-over-year, alongside a calculated billings increase of over 71%. They also managed to more than double their adjusted net income from Q3 of 2020. Add to the recent acquisition of Trustdome (access management infrastructure, or, a fancy way of saying “a way to control who gets to access what”) and their contract with Smokescreen Technologies, Zscaler is definitely setting up for the long haul.
And, there you have it, folks. This time, I only included a single bonus stock, but it’s so great that I was honestly considering changing the format from top five to top-six … except it’s harder to clickbait that, so it just turned into a bonus suggestion. Oh, well.
I’m very optimistic about all of these companies (I mean, I wouldn’t really be adding to my positions if I wasn’t, now would I?), and I’m pretty happy with how they’re trading right now.
Still, I’d like to take a second to remind you that all of this is just my opinion and my own investing decisions. And, yes, many of the tech stocks that I talk about here on this channel had a great last year, and they’ve gone up in a big way as a result. But I’m not buying them because of the “right now”. I’m buying with the intent of holding for years. Because, here’s what’s gonna happen — a lot of these stocks that went up big time during the lockdowns are going to drop back down in price sometime in the future.
If you’re looking for more of the same, but with extra details, go ahead and check out our Private Investing Group. We’ve got free books and courses, discussions, exclusive blogs, real-time chat, and more!
The link is, as always, down in the description.
And that’s all I’ve got for today! Don’t forget to give me a like if you enjoyed the blog regarding My Top Five Stock Suggestions For June, and feel free to drop any questions or ideas about future content in the comments section.
Thank you all for reading, and until next time!
Originally published at https://lifestyletipsbyantoaneta.com on June 8, 2021.