By and large, US stocks have taken little notice of the situation on the ground regarding the covid-19 pandemic.
Stocks have continued to climb even higher. Since the worst of the crash that happened when the pandemic struck, the markets have tended to shoot up when positive news (such as progress on a vaccine) hits, but also climb steadily even when there are few encouraging developments.
If you’re a stock trader, you really can’t ignore these three stocks that have been making headlines for their excellent performance throughout the pandemic and the year.
Digital Media: Facebook (FB)
Like many other tech stocks listed on the Nasdaq Stock Market, Facebook has been performing well in 2020.
In its first full quarter since the covid-19 pandemic, the company blew away expectations with its first full quarterly results. The social media giant delivered strong revenue and earnings, sending its stock soaring 8% on the day.
More recently, investors are licking their lips after eyeing Facebook’s recent ventures into e-commerce, a likely huge source of growth for the future.
Recent ventures include Facebook Shops, an online shopping platform created in partnership with Shopify that will allow users and businesses to create and sell products and services from directly within the platform.
The social media giant has also teamed up with BigCommerce to introduce e-shops for Instagram that will facilitate e-commerce transactions without having to leave the platform.
These are significant moves by the digital titan that may see it capture significant market share in online retail, and is a big reason why so many investors are bullish on Facebook.
Automobile: Tesla (TSLA)
The incredible run for Tesla shares in 2020 seems unstoppable.
Tesla recently undertook a stock split, designed to attract new investors by lowering the price per share. The stock is now up more than 80% since management announced a 5-for-1 stock split on Aug. 11. The gain is about 495% year to date. Performance of Tesla stock has been vastly superior to the comparable returns from the S&P 500 and Dow Jones for the year.
However, the recent performance is not only down to the stock split. Having recently been added to the S&P 500 has attracted lots of purchases from hedge funds and other financial institutions that track the index.
In addition, some well-respected analysts, such as Bill Salesky at Argus Research, raised their target prices for Tesla recently, inviting a wave of purchases from investors following analyst advice.
Where Tesla stock goes from here is anyone’s guess, but analysts and investors seem confident, at least for now, that the only way is up.
Tech: Apple Inc. (AAPL)
Apple keeps rolling on so far in 2020. A recent stock split has attracted investment from investors looking to take advantage of the lower price per share.
A trifecta of enthusiasm over the split, excitement about upcoming releases such as the introduction of 5G, and continued optimism over services such as Apple Pay, Apple Card and Apple Music, all contribute to the ever-rising price of the world’s best-renowned brand.
A run of positive analyst reports are also keeping investors more than buoyant. JP Morgan recently reiterated their support for “buy” positions on Apple stock.
Deutsche Bank analyst Jeriel Ong similarly repeated his Buy rating on the stock, but also warns that the relentless move upwards suggests “a market environment driven less so by fundamentals and increasingly by emotion.”
Keep a close eye on these stocks for the rest of the year. Watch for earnings reports and announcements of new products, services and strategic partnerships. Also, keep a close eye on the market as a whole by tracking indices such as the S&P 500. While the stock market as a whole is performing very well, these companies are still susceptible to any stock market crash should we see one this year.
The only thing that is for certain is that these stocks are hot investments right now, and there’s never been a better time to trade them with TIOmarkets than now.