MAGA Stocks for Inflation & Crash
In today's article, we're talking about MAGA stocks to buy today. That's right. We're talking about MAGA. MAGA makes America Great. On the stock market, MAGA has a whole other meaning as an acronym for great stocks to buy today. I'm a little excited about this topic.
Anyways, the famous New York Stock Exchange FANG Index, which you might be familiar with has been cracking lately, an investor seems to be running away as fast as they can from it. Now for those of you who don't know the word FANG, it was first coined by Mad Money host the one and only Jim Cramer, think back in 2013.
Yeah, I know it's been a while now, FANG refers to the stock of four prominent American technology companies, and that is Facebook. Now meta, Amazon Netflix, and Google alphabet. Now originally, it was just FANG, Facebook, Amazon, Netflix, and Amazon. But later in 2017, Apple was finally added to the club, giving it an extra a and making it FANG.
Now FANG stocks have been darling of the tech investing for I think several years now for all right reasons. And mainly because each of its members has nearly doubled in the last five years, Facebook or the so-called meta went from $134 to an all-time high of $378 Last year on September 10, 2021.
Amazon on the other end went from $827 to an all-time high of $3,773 Crazy, I know, but Netflix also went from $144 to a whopping 700 bucks. And lastly, Google or alphabet also went from 830 $4 to an all-time high of 3000 bucks. This clearly proves your last five-year investment hasn't just doubled, but it even tripled or even quadrupled in some cases.
Yeah, crazy. But boy has that all changed this year in 2022. Or has it and just last one month, we have seen major price swings in this famous tech stock and massive volatility overall, resulting in major losses and declining growth prospects for both Facebook and Netflix. Now, Mater recently released a q4 earnings report.
And it was disastrous, to say the least, how disastrous you may ask, well to the point that the stock dropped 26.4% in a single day, wiping $240 billion of its market cap in just one day. I can't even digest those numbers. It is the largest one-day value loss in US corporate history.
This has to do with the declining active user numbers for Facebook and a $10 billion operating loss. Now Netflix on the other end has also just lost $50 billion in a single day. And nearly 50% of its stock value just because it's expecting slower growth in q1 of 2022.
It looks like they're expecting 2.5 million new subscribers compared to 4 million at the same time last year. That's right. Okay, so now going back to where we started the New York Stock Exchange FANG plus index, which tracks these popular stocks, along with a few other tech companies has gone down 10% Already this year.
Now, you may ask me Is this the time to move on from FANG investment? Well, the matter has admitted that people are not spending enough time on Facebook and the active user base along with engagement is overall also down. And at the same time. Netflix has also mentioned earlier that it is not seeing any growth in US and Canada.
In fact, all of its recent growth has come from international markets like India, Brazil, and other countries. So I think yeah, it might just be the time to move on and say goodbye to FANG stocks. But then where do we invest now? Oh, well, that's where MAGA comes in. I don't know about you all been Maga stands for Microsoft, Apple, Google, and Amazon.
This is where I'm investing in this space. Google and Amazon have both been showing amazing growth and even in the recent earnings reports. Amazon has shown us they're unstoppable, literally unstoppable. Their numbers are through the roof and we'll discuss them in a little bit.
#1. NUMBER
The first stock on the list is Microsoft ($MSFT). Microsoft stock currently trading at $305 which is up 25% From the last year. Now, this is a perfect stock if you're looking for an investment that is more secure with strong growth drivers and earning growth that can outpace any inflation.
Matter of fact, Wall Street is also super bullish about Microsoft stock with a strong buy rating, with a high price target of $425 and a medium price target of $375.69, which is a whopping another 25% upside potential from today's stock price. And hey, the excitement is there for all right reasons.
See, the good thing about Microsoft is that they have their hands in multiple things from being at the forefront of the gaming world to buying an advertising business called extender for a billion dollars to now a new partnership with CVS Health, which was recently announced and Microsoft is going to end quote unquote, further enable CVS digital transformation.
It's a mind-blowing business no doubt about that with a whopping balance sheet of $123 billion. So definitely a great stock to consider getting your hands on.
#2. NUMBER
The second number is Apple($AAPL). So Apple stock is currently trading at $175, which was also up 30% In the last year, with a market cap of $2.8 trillion. I mean, Apple speaks for itself, we don't even have to discuss much. Apple is a recession, inflation, cash crash everything proof company.
It has proven itself over and over and over again in the last decade. And if you're still not convinced, check out their latest q1 2022 earnings report beating revenue expectation at $123.9 billion and beating earnings per share by 11.17%.
That's right. And Wall Street is still super optimistic about Apple stock with a strong buy rating at a high price target of $215 and a median price target of $192.18 Which is still a solid 10% increase from today's stock price.
#3. NUMBER
And then moving on to GOOGL is for Google stock. So Google stock is currently trading at $2,787, which is up 35% In the last year, with a market cap of $1.84 trillion. Now recently, we got the biggest and jaw-dropping news of all time by Google or alphabet when they announced their 241 stock split. Now, this is assuming the shareholders will vote in favor of the split, which I don't see why not. It's awesome.
We will see the split by mid-July of this year 2022. This is great news and it is going to make it more affordable for retail investors. And check this out. Wall Street is also very optimistic about alphabet stock. With a strong buy rating at a high price target of 3900 and a medium price target of $3,499.
That is a whopping 26% increase from the current stock price. Now, this can mean a lot when the split actually happens. So I'm very excited about the future.
#4. NUMBER
Now moving on to the last for one and only e-commerce giant Amazon stock ticker symbol a MZN. Now Amazon stock is currently trading at $3,228 with a market cap of $1.64 trillion.
Now just last week, Amazon said the stock on fire literally on fire when it reported its q4 earnings, smashing earnings per share are $27.75 and revenue of $137.4 billion crazy numbers.
I know. Amazon also announced it will raise its prime membership fee to $139 per year from 119 in the US effective February 18, I think for new members, and hey, almost every analyst I tracked has a strong buy rating towards Amazon stock with a high price target of $5,000 and a medium price target of 4201 dollars.
That is a whopping 30% increase in the stock price. That's right. And, like I said earlier Amazon stock and the company overall is just unstoppable. I am sure we will have no regrets investing in the stock. If you have the patience of putting your money into it. Sit back Don't worry about the short term and check back into your account in the next couple of years.
It sure is going to be incredible. And it was that is what makes up MAGA stocks Microsoft, Apple, Google, and Apple and Amazon this are the four best stocks in my opinion that I'm currently investing in as the market is super volatile. And this is the best place to park your money in this company.
As always, I'm not a financial advisor so please please do your own research before investing and choose wisely, but I hope this article helped.
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