A downward spiraling trend in the life-cycle of a stock is one of the best opportunities to make an entry – this mantra is usually applied by all successful stock traders and more so if the stock in question belongs to an Internet blue-chip company. Therefore, when big names like Amazon.com Inc (NASDAQ:AMZN), Google Inc (NASDAQ:GOOGL), Facebook Inc (NASDAQ:FB) and Twitter tumbled on Tuesday, 8th October, 2014, experts could not help but suggest that it was an opportunity for aspiring investors to capitalize on.
Particularly vocal on CNBC was Robert Peck, Managing Director of SunTrust Robinson Humphrey, who felt that a slight pull-back such as this should be treated by investors as a golden opportunity to equip the portfolio with a few high-value stocks. As his first choice, he quoted Amazon.com Inc (NASDAQ:AMZN) followed by Facebook Inc (NASDAQ:FB) and Google Inc (NASDAQ:GOOGL).
Amazon.com Inc (NASDAQ:AMZN) was one of the companies which experienced a 3% dip during Tuesday’s session and is currently hovering at 320-levels. As per Peck, shares of this global retail giant, if purchased now would accrue handsome returns in the near future courtesy of its latest launch – Fire. Being Amazon’s contribution to the smartphone segment, this gadget has earned good reviews for itself on a worldwide scale and hence is estimated to sell at least 1 million units in the next quarter. This in itself will boost Amazon.com Inc (NASDAQ:AMZN)’s revenue and hence it heralds good news for investors.
Next, Peck opted for Facebook Inc (NASDAQ:FB) which declined by 4% because in his opinion this social networking platform is looking forward to healthy revenue next quarter. His explanation is as follows –
“You’re seeing growth north of 70 percent, incremental margins around 80 percent; the core continues to chug away.”
On its part, Facebook Inc (NASDAQ:FB) is making efforts to improve its service to users by transforming each of its features into stand-alone apps. Once this reconfiguration is over, errors and snags in the service are likely to be diminished and this will hopefully augur more users for this social media service.
Last but not the least is Google Inc (NASDAQ:GOOGL) and Peck explained this preference as follows –
“I always look for franchises on pullbacks. Google remains one of the best business models out there on the Internet.”
In one of its latest stints, Google Inc (NASDAQ:GOOGL) turned the clock back on itself when it hired a camel to carry its Trekker camera to document the sand pattern characterizing Liwa Oasis in Abu Dhabi. Monica Baz, spokesperson for Google said –
“With every environment and every location, we try to customize the capture and how we do it for that part of the environment.”
Is it surprising then that Google Inc (NASDAQ:GOOGL) is a survivor in its own right?
This article has been written by Vinita Basu.