Day trading expert Nikit Shingari talks about investments and stock buying. An avid programmer, he has been trading and investing in the stock market for years now.
Nikit highlights some stocks that have increased investments in the digital media industry. They are Netflix, Twilio, and Zoom.
Zoom is currently on the verge of expanding its growth. This growth is expected to last for a long time. However, Twilio’s stocks have fallen and investors took the chance to invest in the firm. Also, due to bad forecasts, Netflix’s stocks have fallen like Twilio’s.
Why Netflix, Twilio, and Zoom are Getting Investors
Why are the above-mentioned digital platforms getting more investors even when their stocks have fallen?
Most companies can agree that things have been shaky since last year. Many factors contributed to the fall of stocks in the marketplace. They are; poor performance, poor economy, low interests of traders, and so on. Poor performance means that such companies have lost the trust of their investors and customers. Some big companies have recorded low-quality operations which have affected their revenues.
Meanwhile, the reverse is the case for some companies with fallen stocks. Instead of losing investors, many people invested when their stocks fell. This happened to some of the biggest companies in the tech industry. Investors used the opportunity to buy more of the fallen stocks. This is because the stocks were sold at a cheaper price when the company is facing a crisis. If the company was not having a problem, the stocks price would have been high. Many investors wouldn’t be able to afford the price of those stocks.
Let’s Talk About Zoom First
Zoom is the go-to app for:
- People who work remotely
- Executive e-meetings
- Digital interviews
- Digital conferences and seminars.
- Educational e-meetings
- Online classroom for teachers to teach students or instructors teaching learners.
Zoom is currently trendy like all other video communicating platforms. The question is whether people will stop using Zoom. Or will it continue to exist and be popular among internet users? For business owners, will it replace physical communications with their customers? Will it stop people from traveling for business purposes?
While many think that Zoom will replace face-to-face meetings, others disagree. Those who agreed said that Zoom has made it easier for people to connect. Those who disagreed said that if a business is facing a crisis, it will need solutions. The workers will have to physically go to the office to sort it out and face their leaders.
These are the different opinions of the masses that have been existing for the last few months.
Meanwhile, Zoom’s value went high during high patronage. However, it has fallen in value since then. While the number of users is still increasing despite what the gathered data showed. Their generated revenues also increased and their financial outlook is good. This can largely be attributed to the number of people using Zoom phones and video features. Business owners prefer Zoom to facilitate their meetings and reports.
Unfortunately, this doesn’t affect the value of their stocks which have fallen for some reason. Their shares are sold at a rate that is eleven times less than their previous rate. It is even cheaper than the rate they were sold when the stocks fell during COVID-19. It is hard to say if the stocks will soon grow by a fifty percent rate.
This is why investors rush to buy Zoom’s cheap stocks because they can make profits. They buy shares at a cheap price but get good returns from the booming company.
This digital platform is a communications platform that engages users. Twilio is an app that allows users to create automated client assistance platforms. Users can also update their statuses and respond to their customers. Twilio is also used to power phone apps or software.
Things have not been easy for Twilio either. Their stocks have fallen since three months ago. There was a poor direction in the company which partially contributed to its decline. The marketplace is not helping either due to its attitude towards companies that depend on growth evaluation.
The company’s share has reduced at a more than 50% rate since last year. However, investors are keen to invest in the company. They believed the company will perform better later.
Despite this, it is predicted that the company might expand its operations soon. Part of this is because its customer base (old and new) is not small at all and keeps increasing. These customers spend good money on the Twilio app which generates money for the company.
Twilio might not have high revenue, but its flexible policy for stock purchases makes it attractive for investors. They also have no issues when it comes to funding.
The next trend in technology is mobile apps which will boost the economy of any nation. Hence, Twilio will continue to be popular and get investments from investors.
Like the case of Zoom, people can buy Twilio’s stocks at cheap prices and make money.
Netflix is a platform used to stream and watch videos. For more than two years, Netflix has enjoyed good patronage from users and high profits. They maintained the margin until the stocks begin to fall. The fund for producing content is almost the same as the money generated from customers.
However, the number of Netflix subscribers has reduced partly due to the presence of other video platforms. These platforms are free, unlike Netflix which has a fee.
According to Nikit Shingari, Netflix majorly relies on its subscribers to generate profits. They need them to stay afloat. They offer video services to users for a price. The company then use the money on creating content and improving their platform. This in turn will bring more customers to the company. Hence, their stocks have fallen since the beginning of this year. The stocks fell at a rate of more than 30%, the worst ever. The fall can be linked to the reduction in the subscription rates which affected investors’ trust in Netflix. Fewer subscriptions mean loss of trust and loss of investments.
On the other hand, this is a good chance for investors to buy their stocks at a cheap rate.
Fortunately, things turned a little bit around December when the number of those who subscribed increased. This increased the number of shares sold. Investors predicted that Netflix will improve before the end of the year.
However since subscribers have increased, investors have increased too. They can also buy cheap Netflix stocks and make profits.
In conclusion, investors can buy the stocks of Zoom, Twilio, and Netflix for cheap prices. In the long run, these investments will yield good returns for them.