So 2021 is over, what he taught me and what I learned, I will write in one of the following publications. There I will show a small summary of how this year went for me, I will calculate and try to draw a conclusion.
But for now, I have prepared a small selection of 2 companies that I want to draw my attention to at the beginning of 2022.
To begin with, a little about something else the other day I found information that the Morgan Stanley bank shared its forecasts for the financial market for 2022. This is now one of the main topics to try to look into the uncertain future. Morgan Stanley analysts invite investors to take a closer look at the healthcare sector, which sagged in 2021. I also like the manufacturers of essential goods. At the same time, Morgan Stanley does not refuse from growth shares at all. Recently, the bank’s analysts added MasterCard and T Mobile shares to the portfolio. In doing so, they said: “It is the structural producers who have fallen behind their 52-week highs.”
So let’s move on to the stocks I want to buy next month. These are companies from the IT sector such as Intel and Twitter. Let’s take a closer look at each of them.
Tweeter.
Fundamental Analysis
For the last few years, the social network has been involved in several controversies. Among other things, she was accused of censorship and political interest after blocking the account of former US President Donald Trump.
These allegations have led to a sharp drop and high volatility in the Twitter stock. However, they finally managed to recover and continue their long-term bullish trend.
The company’s results were very positive and far exceeded market expectations, with earnings per share rising to $ 0.38 and net income of $ 1.29 billion, while analysts had forecast earnings per share to rise to $ 0.29 and 1. $ 18 billion in net income.
On the negative side of these results, the number of new users turned out to be less than expected. Twitter reported a 27% increase in users, warning that growth could slow in the coming months.
Twitter shares and Trump Account Blocking
Following the publication of the scandalous message about the blocking of Donald Trump’s Twitter account on January 10, the company’s shares fell by almost 7% during preliminary trading on the New York Stock Exchange. Twitter said that the decision was based on the fact that the messages published by the former US president after the storming of the Capitol by his supporters, incited further violence.
Twitter isn’t the only social network to block Trump’s account. Facebook made the same decision and the company’s shares were also down in preliminary trading, although not as much as Twitter: by about 1.5%.
Trump supporters responded to Twitter and Facebook by registering with Parler, a social network similar to Twitter. Such actions have infuriated other companies, with the result that Google, Apple and Amazon have removed the Parler app from their app stores.
Twitter shares: Benefits
As mentioned earlier, Twitter is one of the most popular and largest social networks in the world, it is constantly improving its platform, making it more interactive and user-friendly. The likely increase in the number of users could lead to higher stocks and higher profits in the future.
Leveraging Advertising Opportunities Twitter is just picking up steam and now generates more than half of the company’s revenues outside of the United States.
However, given that about 80% of users are based outside the United States, we see tremendous potential outside of the company’s home country.
Twitter shares: Disadvantages
On the other hand, Twitter stock could be negatively impacted by stiff competition from larger social networks such as Facebook, Youtube, Telegram, and Instagram. These companies have a much higher number of users and a higher income.
Another factor to take into account is the legal and litigation problems that the company may face, which could lead to a decrease in the value of its shares.
Intel (INTC)
The main factors affecting the growth of the INTC exchange rate. Below are the three factors that have the greatest impact on Intel stock prices.
Competition
Last June, Apple dealt a major blow to Intel’s reputation. Apple has confirmed that it will use its own ARM-based processors in its Mac laptops and desktops, with Taiwan Semiconductor selected as the sole manufacturer. This triggered a downtrend in INTC – the share price fell from $ 64.34 to $ 47.73.
Thus, processors from Intel are no longer used in Apple technology. According to some estimates, 5.8% of Intel’s total revenue came from the supply of microprocessors for the American hardware manufacturer. Apple’s M1 chip is reported to be 3.5 times faster, with better graphics and better power efficiency.
Microsoft is also developing its own chips, including ARM-based microprocessors for Azure servers and Surface computers.
If Intel wants to succeed, the company must step up – Apple and Microsoft are already close on their heels.
Production changes
Intel has invested $ 20 billion in two new semiconductor factories in Arizona. If all goes to plan, this should make Intel the premier semiconductor manufacturer in the US and Europe, with the prospect of serving customers around the world.
It should also help solve the problem of years of production delays. So far, the transfer of outsourcing orders to Taiwan’s TSMC hasn’t helped Intel catch up. Analysts say leveraging its own factories could help the American tech giant regain leadership.
Intel will rely solely on in-house manufacturing. The company’s range of operations requires the establishment of overseas foundries for at least some technologies and products. Finding a balance between internal and external manufacturing will help Intel successfully meet customer needs. In this case, the INTC share price is likely to start to rise.
Off-core initiatives
The third factor affecting Intel’s stock outlook has nothing to do with chips.
Intel has a diversification strategy that gives the company access to a number of lucrative markets. Intel’s corporate venture capital division has invested $ 132 million in 11 different startups, according to the latest news.
The company hopes to gain new expertise and advancements in areas such as chip design, artificial intelligence, and autonomous computing.
In April 2021, Intel and MILA announced a partnership to use AI in medical research. There are no specific financial goals or objectives for such initiatives. The positive reviews following the news of the collaboration did not affect Intel’s stock price, but the potentially lifesaving initiative could have a positive impact on INTC’s price.
Intel Stock Long-term Forecast 2025-2030
If production plans for 2023 come true, there is reason to believe that Intel’s growth will continue. It’s too early, though, to give an accurate five-year forecast, let alone a 10-year forecast for 2030. Most likely Intel is on the right track. The company continues to strengthen its position as one of the leaders in the technology sector. The fact that Intel management is making wise investments is helping to improve INTC’s long-term outlook.
