The stock market has yet again hit ATH. It always seems to do so every other month despite the sharp decline back in Q1 of 2020.
Swarms of new investors around the world has entered the market thereafter, injecting trillions into markets around the world; predominantly the US. MEME stocks, FAANG and plenty other sectors have benefited from the sheer volume of trades in the past year. This has caused most of the S&P500 companies to be extreamly volitile and their stock prices to be inflated.
Fundamentals and value investing would be the approach in the coming years ahead. In the short term, Markets would continue to carry on with it’s usal unpredictable swings as tailwinds from economics factors continue to shake up the foundation of the US markets. Untill then, it’ll be wise for investors to spend their time researching on the companies they love and understand their valuations.
These are the two companies that possesses great growth potiential in the streaming and e-sports sector. These are following elements that lead me to being an investor in them. 1.Profitability 2.Strong Balance Sheet 3. FCF positive, Active acquisitions and excellent CAPAX/Investment spending 4. PE Ratio <20 5. Current Assets > Current Liabilities 6. Profit Margin > 10% 7. Excellent Growth Forcast
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