Apple Long Term?

Nothing in today’s tech industry is certain. Companies come and go all the time. The industry is dominated by the companies like Motorola, Nokia, Samsung, and of course Apple. It’s extremely hard for smaller companies to throw their hat in the ring especially when a company like Apple consistently stomps out competition.

In the mobile phone industry a few small Chinese companies have had successes in making high quality, yet affordable smart phones. This has hurt some of Apple’s market share. Like always, Apple came back with a plan to gain back some of the market share they were losing to companies that were providing affordable options. They released the IPhone SE which had all the great features of the new IPhone 6s at a much lower retail price. Apple was able to use a lot of components from their previous phone, the 5s, to reduce cost while still making a high quality phone. The phone was a great success and this really helped their sales. This just proves that a company like Apple will always smite the little guy. They are always adapting and on top of their competition.

Apple doesn’t just rely on their devices to make them money. They have multiple services such as itunes, apple care, app store, and the icloud that brings in a decent amount of their revenue.

So they can control a market, but are they worth investing it? Well maybe not to make a money in the short run but definitely in the long run. Market Watch had a great graph illustrating the revenue they had earned in the last ten years just from their services. In 2016 they have earned over 24 billion dollars in revenue. A staggering amount considering in 2007 they only earned 4 billion. The industry is growing, no one can deny that. Apple constantly is finding new ways to generate more revenue, and without fail every year they increase that number from last year. According to Cultofmac Apple is expected to release there Q2 report early next week, so consider that when making your decision.

Thats all I have for this week. I hope this blog was entreating and informative for you. As always, if you have any questions or comments feel free to leave a comment or contact me directly. Until next time!

What should you do with Netflix?

Last week Netflix released their quarterly report. Unfortunately, even thought they exceeded expectations the stock plummeted quickly on the 18th. This left many investors, including myself stumped. I was pleased to see the great earnings on Monday, but was alarmed to see the stock dropping at a rapid rate on Tuesday and Wednesday. The question is why? Many suspect, including Marketwatch.com that the reason the stock did not continue its previous growth was because Netflix can’t maintain consistent subscriber growth. While Netflix was able to increase revenue they are consistently gaining less and less subscribers.

In the past few years Netflix has tried everything to increase the amount of subscribers. They have created original content for their show that is only available on Netflix. They have attempted to increase international subscribers but fail to reach different cultures due to the fact that they have limited content for different regions. They have attempted to address this by adding new content, but this had little effect. Despite their best efforts, Netflix can’t seem to meet expectations for growth. For investors, this is a big problem. Until Netflix resolves the issue of limited subscriber growth I am pulling my investment. I have made a decent amount of money with them so far, and I am sure that they can resolve this issue. All things considered, they did change television as we know it.

Thats all I have for this week. I hope this blog was entreating and informative for you. As always, if you have any questions or comments feel free to leave a comment or contact me directly. Until next time!

What To Watch This Week!

There is a lot of big things going on in the market this upcoming week. Three large companies are expected to give there quarterly report. Netflix will release their Q1 on Monday. They are expected to show respectable numbers, but it’s not all good news for Netflix. CNBC believes that there will be a lower number in the subscriber growth compared to resent quarters, but only due to a lack of original content. However, Netflix has invested a large chunk of change into making new content. This is a double edge sword of course for Netflix. On one hand they create more subscribers, on the other hand they just reduced the bottom line due to the large investment in future content. All things considered they are expected to yield a $.38 increase per share. I am currently invested in Netflix and I’m excited to see what tomorrow brings. Another stock to watch is American Express. For the last two years they have been really struggling. An onset of problems, including losing their partnership with Costco, has kept them from making headway in the market. This quarter they look to make a rebound. According to SeekingAlpha they should be making quite a comeback. If their projections are correct American Express would make a great longterm investment. The last stock I have watch on this week is Johnson and Johnson’s. They are set to release their earnings report on Tuesday, and considering their performance in the last year it should be a great report. They have consistently beaten the market since last year, and are expected to do it again Tuesday. In 2016 sales rose 7% thanks to their pharmaceutical devision. Johnson and Johnson’s expects the pharmaceutical devision to increase sales by another 4%-5% this year. This will surely increase the bottom line and put more money in shareholders pockets.

Thats all I have for this week. I hope this blog was entreating for you. As always, if you have any questions or comments feel free to leave a comment or contact me directly. Until next time!

 

Should You Invest In Tech Companies?

In the last decade tech has been a large part of the US economy. There are high expectation for tech companies in the coming months with President Trumps plan to cut taxes and regulations on these industries. So, should you feed into the hype?

Tech can be a very unstable industry to invest in. Smaller tech companies like Nvidia are very volatile, and unpredictable. Last month they fluctuated from $98 to $109, and back down to $103. Even big companies like Apple are not a 100% safe bet. May 13th of last year apple hit it’s lowest price since October of 2014. However, since then they have grown at a stable yet impressive rate.

No one can deny that americas use of tech will continue to grow. In my lifetime I have seen the cellular phone develop from a large bulky device with a big antenna to a sleek, innovative machine. In just 21 years. Time will only tell what kind of amazing devices we have at our disposal in another 20 years.

To come back full circle. Should you let President Trumps proposal on changing the taxes and regulations on the tech industry influence your investing strategies? My advice would be to stay away from small, and risky companies strictly because they are all around hard to predicts. Instead, invest in large name tech companies that are showing strong signs of innovation such as Apple and IBM. I would strictly invest in companies that are American based, due to the fact that President Trump’s motto is “America First.” Another thing to think about is the fact that a lot of these tech companies heavily rely on foreign labor and foreign parts. So that may be a big factor.

That’s all for this week. I hope this weeks blog was helpful. As always if you have any questions please do not hesitate to leave a comment or ask me directly! Till next time!

Who to Invest Through!

My recommendations on the three most popular e-brokers.

One of the biggest struggles I faced when I started investing was choosing which brokerage firm to invest with. The good news is there are plenty of options. First, you have many factors to consider. First, what sort of investing to you want to do. Are you looking to just put some money into a safe mutual fund or ETF (Exchange Traded Fund), or do you want more control to invest in any stock you so choose. Second, how about fees? What are you willing to pay? There are many investing applications that only charge a monthly fee, or a very low per-trade charge. To help you decide who you want to invest your money through I have created a list of the top three investing apps along with the pros and cons to each one.

etrade

First up, ETrade. ETrade is one of the most popular investment companies today. Etrade’s most attractive feature is that it allows you to invest with any publicly traded company. Another benefit of using ETrade is that there are multiple charts and ratios you can use to make wise investing decisions. One of ETrade’s draw backs is the fees, each trade is $9.99. Compared to other e-brokers this is a fairly high trade rate.

robinhood

Next, is an investing app called Robinhood. The great thing about Robinhood is there are ZERO fees! However, there are limited trading options and the app is only accessible on a mobile device. Here is Business Insiders review/take on Robinhood.

stash

The last App is Stash. This is another investing application. However, they have take a lot of the scary and challenging aspect of investing. What they have done is composed a variety of ETF’s to choose from. They give a description of what each ETF includes, and its risk level. There are fees for this app however. If your account is less that $5000 there is a $1 a month charge. If your account is more than $5000 you will be charged a .25% annual fee.

I hope my first blog was informative, and helpful. If you have any questions or comment please do not hesitate to directly contact me, or leave a comment below! Until next time!