It’s September 2018, a rare occasion where 2 companies from the top ten largest global companies (by market capitalisation) trading at more than 30% discount from its peak (52 weeks). I highly recommend these two must buy shares NOW before they break away into the $250 mark by 2020. These two companies are still seeking growth and expansion to various business and market.
Yes, I am recommending these shares for long-term investment, preferably in your millionaire stocks and shares portfolio. Would also highly recommend for your kid’s stocks and shares portfolio.
Let’s not waste time and focus on these two amazing companies.
Facebook was at a peak high of $217.50 in July 2018 and the shares fell almost 20% in a single day. It was due to lower estimated earnings at a higher operating cost. The increase in cost was to fix the broken system scandal which hit 87 million users in the Q2 2018. Facebook is basically the toxic stock on the wall street today. Short term seller thinks Facebook days are numbered.
Ali Baba has been hit by two massive waves to force the stock to slump. First is the Trump trade war between China and the US which would drive the cost of imports and exports. Second is the surprise retirement announcement and stepping down of their most charismatic CEO and Founder Jack Ma.
These two companies shares are trading at more than 30% discount, however, the future of the business is still focused on customer driven-business growth.
As a user, do you noticed you have spent more time on FB, IG and WhatsApp on your daily routines? Last 18 months, many users have been shopping, selling and watching more videos than previous Amazon, eBay and Youtube.
Facebook is integrating the whole experience into one platform silently allowing users to evolve to its requirements.
As a business, FB is seeking earnings for more forms of social, live sports, e-sports, game streaming and eventually spending money on the platform. FB ultimate goal is to make money from all parties (Customers, Marketers, Sponsors, Movie production and Online Vendors).
Ali Baba seems to be everywhere but not much presence in Europe. Recently, I’ve seen AliPay, AliExpress parcels and Ali Baba sponsored movies. The company is slowly expanding its roots like a journey to the west.
With the recent announcement of support and assistance to help develop the Russian and India logistics. Yes, Ali Baba is venturing into undeveloped e-commerce areas which Amazon have failed.
Cloud computing and Large Data analysis are being a focus at the moment to plant a foundation into the future plans. We have to wait and see how this intelligence can evolve into a consumer level goods and service.
If FB and BABA were trading above $210 today, I would not be writing this blog today. As explained in my previous article on the ‘Easiest & Hardest Stock Strategy’; its never easy to buy low, because we are full of fear and negativity. Filter out all the media and reports and just focus on the business alone.
Are FB and BABA going bust? Are they no longer growing? Will you see your kids and grandchildren using these two companies goods and services?
In 2020, you will be reading this article and realising you should have bought more shares from these two amazing companies at such a discounted price. I was the same in 2016 when Apple was hovering under $100 because the investors think it was the end of the era. Two years later the company doubled in size and became the first $1trn value company. Quality and Integrity together cannot be toppled.
I would personally buy both shares at $160. If it drops lower (150 and 140), then buy in stages to level out the average. Lets focus on the long term prospects.