Warren Buffett once said that investors should be “fearful when others are greedy, and greedy when others are fearful.” It seems that Syfe Trade investors have taken his mantra to heart.
Tesla, Meta Platforms and Apple were the top 3 most bought stocks on Syfe Trade last week. Despite the ongoing pressures on tech and growth stocks, investors largely viewed the pullback as an opportunity to load up on these three stocks at discounted prices.
Curious about Tesla, Meta and Apple? Here’s a quick primer to help you kickstart your own research into these stocks.
1: Tesla
Tesla is the largest electric vehicle (EV) manufacturer in the US. Its sales have soared in all markets, especially in Europe and China. According to Zacks research, robust demand for Models 3 and Y has been boosting Tesla’s revenues.
The company recently reported solid Q4 2021 earnings, outperforming revenue and profit estimates. Earnings grew 65% year-on-year and Tesla posted a record $2.3 billion profit for the quarter.
Over the past year, Tesla has shown that it can navigate challenging manufacturing conditions well. Despite the global chip shortage, Tesla’s vehicle deliveries rose 87% in 2021. The company expects 50% average annual growth in vehicle deliveries over the next several years, and its two new factories in Texas and Germany, respectively, are expected to begin production soon.
In an investor update, Tesla shared that its much-anticipated Cybertruck will begin production in 2023 and that it’s working on its first humanoid robot.
2: Apple
According to Morgan Stanley, Apple is their “top pick for 2022”. The company is highly profitable and generated $93 billion in free cash flow in 2021.
Apple primarily makes money by selling its devices (iPhone, iPad, Macbook, various wearables) and by providing services to those devices. The latter includes payment services like Apple Pay and cloud services such as iCloud and App Store purchases.
In its fourth quarter earnings report, the company reported services revenue of $19.5 billion, a record 24% growth over the prior-year period, and overall revenue of $123.9 billion. In fact, Apple’s services revenue growth outpaced its overall revenue growth.
Most recently, Apple announced a new financial services innovation – a Tap to Pay feature for the iPhone that allows people to buy goods from merchants in the US by tapping their phones together. This effectively turns iPhones into point-of-sale terminals.
3: Meta Platforms
Meta is the parent company of popular social media apps Facebook, Instagram and Whatsapp and currently generates a significant bulk of its revenue from digital advertising. With ad revenue faltering, it announced a pivot into the metaverse, which Bloomberg Intelligence estimates to be an $800 billion opportunity by 2024.
Meta shares have fallen by more than 20% at this time of writing as investors sold off after the company reported disappointing earnings for its 2021 fourth quarter. Meta revealed increased competition from TikTok and how Apple’s privacy changes have affected its advertising platform. CFO David Wehner has estimated that the iOS challenges will cost Meta roughly $10 billion in ad revenue this year.
Despite these challenges, Meta was still hugely profitable in 2021. It surpassed $100 billion in annual revenue for the first time and made more than $46 billion in profit.
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