Tesla Goes Up, Amazon Goes Down, AMD Falls Flat
Yesterday the electric car company Tesla released there earnings report and shocked many investors. They posted tremendous success in every metric from sales & earnings to production quotas and more. Amazon fell short of investor’s expectations and AMD’s stock has fallen nearly 50% since its high a month ago. All this movement in the market makes you wonder what to buy.
Is Tesla A Good Investment?
I’m going to preface everything I say with this, I’m a Tesla shareholder and a fan of their products. Tesla is an emerging auto maker that makes exclusively electric vehicles. In the past few months the company and it’s CEO Elon Musk have faced a lot of scrutiny over becoming profitable and the model 3 production. This was the quarter that proved many of them wrong, with Tesla being profitable in Q3. While some investors believe that this will be nothing more than short-term success, I believe that it is the start of a successful future for the company. While each person and what they invest in is dependent on many factors, I recommend Tesla as a long-term investment. With there recent success, I wouldn’t quite invest for short-term gains, as there is often negative press that will drive the price of the stock down for a few days or weeks, before it returns to normal.
What About Amazon?
Moving on to the Internet giant Amazon, they fell short of their sales expectations, though they exceeded the estimated EPS (Earnings Per Share). Due to this, the stock dropped 7% in after hours trading. This puts it in a perfect short-term investment and even a decent long term investment. One bad quarter, or even a few for that matter, isn’t going to stop this company from dominating every market it touches. While the stock may be a bit more volatile right now, it will become a bit more stable in the coming weeks.
Is AMD Failing?
AMD’s stock as fallen nearly 50% from their all-time high a month ago, so does that mean the company’s failing? Many things can contribute to a drop this harsh, but the biggest factor for AMD has been an unsustainable growth rate. While the stock has dropped nearly 50% in a month, it had also nearly doubled from the month before that. With growth that fast, there’s no way it could have stayed at that price. Depending on your view of AMD, this could be a great time to invest. With that big of a fall it’s not likely to fall much more if any in the short-term, but as with anything, you have to assume you’ll hold it for the long-term. If AMD is a company you believe in long-term, then now is a great time to invest.
So What’s The Best Investment?
These three stocks are just a small set of the many good investments out there. The two most important things to remember when investing in stocks are to find a good high quality company and to find a company in and industry you can understand. For me, that’s Tesla, Amazon, AMD, and other tech stocks, for you it may be something else. Once you’ve found your good company, take advantage of these great moments where the stock falls.