SMCI
Super Micro Computer
-- 42.000 TSLA
Tesla
-- 357.090 NVDA
NVIDIA
-- 138.630 MSTR
MicroStrategy
-- 380.300 INTC
Intel
-- 23.930 According to nerdwallet, growth stocks are issued by companies in the rapid development stage and are a subjective evaluation of people. Most of these companies belong to emerging industries or industries with great development potential, which usually have high price-to-earnings (P/E) ratios and high price-to-book ratios. Investors are rewarded from future capital appreciation rather than dividends.
The company is a mobile payments company that was founded in the United States in 2009. In December 2021, it underwent a name change and is closely associated with blockchain and cryptocurrency. In the past three years, its revenue soared by more than 274%.
The company is a one-stop SaaS e-commerce service platform. In 2022, it entered into a strategic partnership with JD.com, China's e-commerce leader. In the past five years, its net income has increased by 7000%.
The company is a leader in e-commerce platforms and payments, and is the largest online marketplace in Latin America. In the past five years, its revenues have surged 405%.
MsMay : Chart 1 Square Inc (ticker symbol SQ)
Chart 2 Shopify (ticker symbol SHOP)
Chart 3 Mercado Libre (ticker symbol MELI)
crypto pro 41 : Chart 1 ($Square inc) SQ
Chart 2 ($Shopify) SHOP
Chart 3(Mercado Libre) MELI
Spritz : 1. $Block (SQ.US)$
2. $Shopify (SHOP.US)$
3. $MercadoLibre (MELI.US)$
Xiaoxi_penguin : Chart 1: $Block (SQ.US)$
Chart 2: $Shopify (SHOP.US)$
Chart 3: $MercadoLibre (MELI.US)$
SQ changed its name to Block due to its focus in blockchain. It has 10% liquidity in bitcoin and is aiming to build a bitcoin-based platform. This shows that its growth reliance of the performance on bitcoin is quite massive. With the current market where bitcoin is not fully recognised and even being banned by a few countries, the expansion of the crypto platform will be restricted. However it is not to say that bitcoin won’t be the future huge thing. With the number of bitcoin mined reducing each year, the value of bitcoin will keep increasing. The only problem is how many of the major companies accept bitcoin as a payment? Are those companies providing essential products/services? If this is realised, SQ will take its place in the future trend. However, if not, SQ will be facing tremendous amount of pressure by its competitors. Personally I think SQ’s sideway focus on bitcoin might hinder its main operation to a certain extent and bitcoin will struggle in the short term. Thus, I won’t go for short term but if it shows signs of positive feedback from the companies internationally in regards to crypto, might consider a long term investment.
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As on e-commerce, one of the largest factors for its success would be traffic. As of 2022, Shopify has 56.5 million per month as compared to Amazon’s 197 million per month in terms of traffic. This attracts more sellers Amazon as compared to Shopify, which in positive loop, attracts even more customers to Amazon. Saying so, Shopify provides sellers the ability to customise their own marketplace while Amazon provides the marketplace, which makes Shopify having a competitive advantage over Amazon. However, recently Amazon has started with its e-commerce platform, which makes the tide shifts towards Amazon. Shopify’s experience in e-commerce platform might be able to hold for a while but not for long if Shopify doesn’t come up with a better solution to step-up its game. In terms of stocks, with the increase of needs in e-commerce products, shopify might have a higher growth rate as compared to amazon, which makes the stock to escalate for the short term but I won’t bet on the long term aspect on it due to it’s restricted expansion caused by amazon once amazon gains experience in e-commerce platform.
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For MELI, when I was looking at the chart, I was like “Oh god, a double top, that’s an extreme bearish sign”, which reminds me of Top Glove stocks, which goes downtrend for an extended period of time. But later, I recalled the problem in regards to Top Glove, which is because of the consumers’ needs have declined significantly. So the fundamental of stock isn’t about looking at how similar are the trends, but about the reason behind it, and whether the company could recover from it. MELI is riding the two largest e-commerce and payments in Latin America, making it a leading large e-commerce platform there. Within Latin America, it is able to grow at an extreme speed, especially during pandemics or post-pandemics. However, MELI’s fintech business might be a problem for MELI, which causes its drop in stock. As credit card grows to a larger portion of the company’s business, more loan outstanding on credit cards create more loan losses and lower profit margin, which is quite a worry. If MELI is able to overcome this issue, MELI has a potential to strive higher. Although it surpasses eBay in market cap, it still remain much smaller in size as compared to Amazon. Thus, although it has the potential to do extremely well within Latin America, in terms of international perspective, it is not well prepared yet, which restrict its expansion at a certain point. Thus, before it solves the loan losses, it would be very risky for the short term. However, for the medium term, it does have a large potential to escalate until a point where it has to expand its business, and there is a high potential for it to reach a plateau.
Ah keong : 图表1. $Block(SQ.US)$
图表2. $Shopify(SHOP.US)$
图表3. $MercadoLibre(MELI.US)$
Ah keong : Figure 1.$Block (SQ.US)$
Figure 2.$Shopify (SHOP.US)$
Figure 3.$MercadoLibre (MELI.US)$
103047546 : Figure 1.$Block (SQ.US)$
Figure 2.$Shopify (SHOP.US)$
Figure 3.$MercadoLibre (MELI.US)$
阿姚朋友 : Figure 1.$Block (SQ.US)$
Figure 2.$Shopify (SHOP.US)$
Figure 3.$MercadoLibre (MELI.US)$
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