NASDAQ

Young investors choose Amazon stock

Summary

Jim Cramer breaks down stocks that young investors are buying Description video: \”Mad Money\” host Jim Cramer explained why he thinks younger investors, while inexperienced, have an edge over adroit investors in this market. Subscribe to CNBC PRO for access […]

Jim Cramer breaks down stocks that young investors are buying

Description video:
\”Mad Money\” host Jim Cramer explained why he thinks younger investors, while inexperienced, have an edge over adroit investors in this market. Subscribe to CNBC PRO for access to investor and analyst insights: https://cnb.cx/2Vtntx6 \n\nStocks on Tuesday rebounded from a weak morning trade, powered by moves from younger traders, CNBC’s Jim Cramer said after the close.\n\nBefore the S\u0026P 500 managed to set new highs during the trading day, the broad index was down 0.35% at its lows. The index swung up 0.28% by the end of the session, closing at a record 3,702.25.\n\n“You need to know that this rally from the bottom was largely fueled by younger investors who can’t resist … and buy the dip,” the “Mad Money” host said. “They love to buy when stocks are down, regardless of the news backdrop, and they’ve got enough clout these days to move even some of the biggest stocks going higher in the market.”\n\nThe Dow Jones and the tech-heavy Nasdaq Composite also climbed to new intraday highs, though the blue-chip index fell short of a closing record. The Dow fell 97 points before rising to end the session up 104 points, or 0.35%, at 30,173.88. The Nasdaq was down 0.53% before ending the day 0.50% higher at 12,582.77, a new high.\n\n“I wanted to give you the beginning of their playbook. I am going to come back again and again because I respect them,” Cramer said. “While these buyers may be young, we’re in a market where callow youth has an edge over their cynical elders.”\n\n» Subscribe to CNBC TV: https://cnb.cx/SubscribeCNBCtelevision\n» Subscribe to CNBC: https://cnb.cx/SubscribeCNBC\n» Subscribe to CNBC Classic: https://cnb.cx/SubscribeCNBCclassic\n\nTurn to CNBC TV for the latest stock market news and analysis. From market futures to live price updates CNBC is the leader in business news worldwide.\n\nThe News with Shepard Smith is CNBC’s daily news podcast providing deep, non-partisan coverage and perspective on the day’s most important stories. Available to listen by 8:30pm ET / 5:30pm PT daily beginning September 30: https://www.cnbc.com/2020/09/29/the-news-with-shepard-smith-podcast.html?__source=youtube%7Cshepsmith%7Cpodcast \n \nConnect with CNBC News Online\nGet the latest news: http://www.cnbc.com/\nFollow CNBC on LinkedIn: https://cnb.cx/LinkedInCNBC\nFollow CNBC News on Facebook: https://cnb.cx/LikeCNBC\nFollow CNBC News on Twitter: https://cnb.cx/FollowCNBC\nFollow CNBC News on Instagram: https://cnb.cx/InstagramCNBC\n\nhttps://www.cnbc.com/select/best-credit-cards/ \n\n#CNBC\n#CNBCTV

Young investors choose Amazon stock

Newbie investors prefer Amazon to other big tech companies.

From more than 460 participants Business Insider research, roughly 51%, chose this e-commerce giant as the FAANG stock they would most like to keep in their portfolio for the next ten years. Alphabet finished second with 27% of the vote.

The results were obtained from several hundred young investors who volunteered to share their views on the market situation. The main criterion was the age limit up to 35 years and the presence of a brokerage account.

Amazon stocks recently hit record highs. They rose in price at the end of July after of exceeding analyst expectations relative to quarterly revenue and profit. Sales during this period are up 40% year-on-year to $ 88.9 billion as quarantine boosted online shopping. Net income doubles to record $ 5.2 billion.

According to the company’s CFO Brian Olsavsky, the company’s high revenues were largely driven by sales of premium products and an overall increase in product shipments. Amazon-branded merchandise grew 57% QoQ, while online sales grew 49%.

Looking beyond recent results, Wall Street analysts share long-term investor enthusiasm around Amazon. Bank of america raised its target share price from $ 3,280 to $ 3,560 on the back of rising earnings, marking the company’s strong position in online retail and cloud software during the coronavirus pandemic.

Amazon closed at $ 3,138.83 on Tuesday, up about 70% from last year.

Apple ranked third «millennial investors&# 39; rankings». 15% of respondents chose iPhone maker as their 2020s FAANG stock.

Netflix got almost 4% of the votes and took fourth place. Facebook turned out to be the least preferred, with only 2% choosing it as the tech giant they would like to own.

Young investors choose Amazon stock