You could get motion sickness by watching the wild movements of the stock market. But despite the crazy volatility, there are a lot of good stocks to buy if you’re a long-term investor.
I personally invested in three of these excellent stocks last week. Was I worried that they could drop even more in the coming months? Did my fingers tremble when pressing the button to buy? No and no. I am confident about the long-term prospects for the three companies. Here are the stocks I bought last week – and why I plan to buy more stocks in the near future.
Amazon.com (NASDAQ: AMZN) fared better than most stocks during the collapse of the coronavirus market. This makes sense to me, given that the company’s e-commerce and cloud activities should work well even with consumers locked up in their homes.
In fact, I think the COVID-19 pandemic could boost Amazon’s business in the long run. E-commerce was already booming, but even more people could appreciate the convenience it offers during this quarantine period and on-site shelter orders – especially with the AmazonFresh’s grocery delivery service. company.
My intuition is that Amazon Prime subscriptions are also increasing. Free delivery is a big draw, but with so many people at home, the video streaming service included with Amazon Prime is also a key attraction.
But I would like Amazon even if it does not benefit from a tailwind of the coronavirus crisis. I expect the company to become a major player in the pharmacy sector. I think he will continue to be a world leader in artificial intelligence (AI). And I won’t be surprised if the domestic robots from Amazon that are on the way should soon be widely adopted.
The bottom line for me is that Amazon has a fantastic gap and many ways to grow in the future. This is the kind of stock to buy at any time, but especially when it is available at a reduced price.
MasterCard (NYSE: MA) was severely affected by the COVID-19 epidemic. With consumers spending less, the payment processing giant has already lowered its outlook for the first quarter and withdrawn its forecast for 2020.
None of this bothers me, however, because the negative impact of the coronavirus on Mastercard’s activity will only be temporary. Mastercard’s long-term prospects still look very solid.
The same trend in e-commerce that will help Amazon also benefit from Mastercard. Customers who buy online are much more likely to use a credit card than those who buy products from a brick and mortar store. But what if they use a digital payment method like those Pay Pal and Square? There is still a good chance that Mastercard will make money, because in many cases these digital payments are tied to consumers’ credit cards.
Mastercard is essentially part of a duopoly, with Visa, in the payment processing industry. The barriers to entry into this business are enormous. The Mastercard platform becomes even more valuable with a larger number of users – a huge network effect.
These competitive advantages, combined with the great growth prospects resulting from the continuous rise of electronic commerce and the transition from cash to digital payments, make Mastercard one of the most attractive stocks on the market, in my opinion. I will absolutely add to my position in this stock.
Like Amazon, Microsoft (NASDAQ: MSFT) the stock weathered the COVID-19 storm better than most. The technology leader’s Teams real-time collaborative software has particularly grown, with more than double the number of users than just a few months ago.
Currently, my favorite thing about Microsoft is its Azure cloud infrastructure activity. Azure is growing even faster than Amazon Web Services. I expect this will fuel significant growth for Microsoft in the years to come.
I’m not a big player, but I also like Microsoft’s key position in the fast growing market. The company’s Xbox is extremely popular. A next generation version of Xbox is poised to become Microsoft’s most powerful console and could drive even more sales growth for the company.
Many large and small businesses tend to be “Microsoft stores.” Their IT staff know Microsoft and should not switch to other products. I think it gives the company a solid divide, while it has growth opportunities in several arenas.
Microsoft has long lagged behind. It has changed. It is now a hot growing stock that I think will continue to grow.