JThe recent bear market has left many investors scared and reluctant to invest. Many technology pioneers, both inside and outside the Nasdaq Compound, are now negotiated with a fraction of their summits. The composite itself is down about 31% year-to-date.
However, this bear market means that $1,000 buys a lot more stock than it did a year ago. To this end, the market set the price Amazon (NASDAQ: AMZN) and The trading post (NASDAQ: TTD) well within the reach of these investors.
Amazon’s actions are negotiated with substantial discount
Until recently, Amazon shareholders with just $1,000 to invest would have had to settle for a partial stake. But now that Amazon has just divided its shares 20 for 1, small investors are easier to buy actions of this electronic and cloud sales giant.
Even with a large online retail footprint, consumers bought less online, hurting Amazon’s stock. Investors sold off as its North America and International divisions posted negative operating income.
Yet Amazon Web Services, which pioneered the cloud computing industry, continues to fire full steam ahead. It only accounted for 16% of Amazon’s revenue in the first quarter of 2022, but that revenue was up 36% year-over-year.
That far exceeded the company’s 7% revenue growth over the same period in the first quarter. These revenues, which amounted to more than $116 billion, still resulted in an overall net loss of $3.8 billion, compared to a profit of $8.1 billion in the year-ago quarter. This slower revenue growth likely contributed to a 45% drop in Amazon’s stock price from its 52-week high.
Nonetheless, analysts believe it can return to 12% revenue growth for 2022 years. Given the resilience of the cloud and a likely recovery in retail, such a price level could make today a good time to start adding positions to Amazon.
Trade Desk shares are currently selling at a 60% discount
Investors unfamiliar with this company may assume it has something to do with stock trading. While most certainly tapping into a marketplace, this particular trade office buys available ad inventory.
Additionally, to foster a competitive advantage, it helps clients to personalize their media campaigns and set spend parameters to ensure that they are purchasing ad space that would enhance clients’ marketing goals. And it uses other advantages thanks to the software. Thanks to a new platform called Solimar, it can bypass the privacy updates of Apple and Alphabet. In addition, with its Unified ID 2.0 solution, customers no longer need to access third -party cookies, a concern that has harmed certain media values in recent months.
In the first three months of 2022, its revenue of $315 million jumped 43% year over year. That means revenue growth had remained consistent with 2021, when revenue also grew by 43%. Although the company reported a GAAP loss of $15 million, non-GAAP revenue increased 50% to $105 million excluding stock-based compensation and an adjustment for income tax. revenue.
Yet The Trade Desk also predicts a modest slowdown as it forecasts $364 million in revenue in the second quarter, which would mean a 30% year-over-year increase if that figure holds.
Investors turned to the company in the midst of the most modest increases, and it sells with a discount of almost 60 % compared to the summit of 52 weeks. However, the price-to-sales ratio of 18 is a two-year low and fell from 50 in November. This discount and its growth potential could make it a good time for a start-up investment.
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Suzanne Frey, director of Alphabet, is a board member of Motley Fool’s. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a board member of The Motley Fool. Will Healy has no position on the actions mentioned. The Motley Fool owns and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Apple and The Trade Desk. The Motley Fool recommends the Nasdaq and recommends the following options: $ 120 long calls in March 2023 on Apple and short calls of $ 130 in March 2023 on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.