Close menu

April 28th, 2022 | 13:32 CEST

Alibaba, Netflix, Meta Platforms, Globex Mining - Find the best turnaround stocks in 2022!

  • Commodities
  • Investments
Photo credits:

Rising interest rates and inflation - Central banks worldwide now have to tighten the reins to keep demonetization from getting out of hand. Traditionally, technology stocks, which are otherwise in demand, tend to do poorly in such phases because they have higher financing costs. The higher discount rate makes corporate cash values less profitable than in low-interest rate environments. The NASDAQ-100 Index hit its high of 16,767 points in November 2021, just as the 10-year interest rate began to rise. Since then, the technology index has lost about 22%. But some stocks have more than halved in value. We take a closer look at the former high flyers.

time to read: 4 minutes | Author: André Will-Laudien
ISIN: ALIBABA GR.HLDG SP.ADR 8 | US01609W1027 , NETFLIX INC. DL-_001 | US64110L1061 , FACEBOOK INC.A DL-_000006 | US30303M1027 , GLOBEX MINING ENTPRS INC. | CA3799005093

Table of contents:

    Dr. Thomas Gutschlag, CEO, Deutsche Rohstoff AG
    "[...] China's dominance is one of the reasons why we are so heavily involved in the tungsten market. Here, around 85% of production is in Chinese hands. [...]" Dr. Thomas Gutschlag, CEO, Deutsche Rohstoff AG

    Full interview


    Alibaba Group - Unjustly on the sidelines

    Chinese e-commerce specialist Alibaba Group is one of the most prominent foreign ADR losers on NASDAQ. Starting with the trade conflict between the US and China, the downward trend continued due to constant regulatory interventions by the Chinese authorities until even American technology funds such as ARK Innovation Fund threw in the towel. At a low of around EUR 66, the stock lost a full 75% from its high in the fall of 2020. At the moment, the price is recovering slightly above EUR 80.

    Operationally, the Company never fared particularly poorly - on the contrary: revenue grew at constant rates of 30-50% per year between 2018 and 2021, and earnings also developed extremely dynamically to USD 8.20 per share in 2021. At a current price of USD 84, the China stock is currently trading at a historic valuation low with a P/E ratio of around 10. The market capitalization of EUR 217 billion reflects 2 sales, and experts still estimate growth at rates of 10-15%.

    For a long time, investment legend Charlie Munger was considered one of the few remaining investors who, despite the catastrophic price development, continued to believe in Alibaba and constantly increased their investment. But now, Munger's Daily Journal Corporation sold about half of the former 602,060 Alibaba shares. For the community, this is a clear sign of a "throw in the towel." Long-term fans of the Chinese tech stock should re-enter at around EUR 80!

    Globex Mining - Optimized investment in over 200 properties

    "Do not put all your eggs in one basket" is a well-known investment philosophy. Especially in the field of commodity exploration a broad diversification can significantly increase investment success, as the different commodities often correlate negatively and thus keep the overall port fluctuations low.

    The Canadian explorer Globex Mining follows this investment approach and has been involved in more than 200 projects over the years. Globex is a very experienced company, consistently developed by industry veteran CEO Jack Stoch. The Company's primary objective is not to build an investment-grade mining operation but rather to optimize and maintain its broadly held properties. In addition to its many holdings in gold, silver, copper, platinum and palladium, as well as base and specialty metals, the Company also has a well-filled treasury so that it can always make additions or new acquisitions if necessary. The deal flow has always led to an increase in the value of the holding in recent years.

    Currently, Globex is announcing news on the investment Maple Gold Mines Ltd. regarding exploration drilling on the Eagle gold mine property, which Globex acquired in July 2021. Phase 1 has now been completed with eight drill holes, and a Phase 2 drill program is currently in the permitting process. Assay results are pending; however, initial drill core sightings from Eagle are very encouraging. Several drill holes show semi-massive pyrite-iron carbonate and other types of mineralization known to be gold-bearing. Initial assay results from the Phase I program at Eagle are expected to be released in the second quarter of 2022.

    Globex Mining has nearly doubled on the stock market since January 2022. Its prospective projects are paying well on the Company's value, which has now moved upward to CAD 77 million. In addition to its home exchange in Toronto, the stock is also tradable on German exchanges. With an increasing inflation trend, Globex Mining is excellently positioned in the commodity market.

    Netflix or Meta Platforms - Which Nasdaq stock to bet on now?

    Two well-known protagonists of the NASDAQ have been hit hard recently. Both Netflix and Meta Platforms experienced a sharp sell-off after investors were surprised by slightly lower growth numbers. Notwithstanding the losses of over 50%, the intense price reaction also shows the very high valuation of the long-loved FAANG stocks.

    Now, at a significantly reduced price level, the question arises whether the "Fallen Angels" are suitable for new investment. Elon Musk, with his acquisition of Twitter, shows that the lower valuations are also suitable for an acquisition at times. Netflix and Meta Platforms are valued at P/E ratios of 18 and 13, respectively, after their correction. Netflix now only comes to a factor of 2.5 in its revenue valuation, but there are doubts about the business model's sustainability. Estimates for the next few years have only been given 10% growth. In the last 2 years, this had sounded quite different. Out of 7 current analyses, the experts only dare to give a "hold" rating. However, the average price target is still USD 351.

    The advertising giant Facebook is now listed at a 2-year low with a 4-fold revenue valuation. Nevertheless, annual growth is seen at a solid plus 15%. Earnings per share are even rising disproportionately. The debt-free Company achieves free cash flows of 20% on sales per year. These are first-class growth figures, confirmed by more than 30 analysts. A total of 56 experts rate the Company as Buy to Hold. The average price target is USD 304 - 67% higher than the current price of USD 181. In a direct comparison, Meta Platforms seems significantly more attractive than Netflix!

    In times of strongly rising inflation rates, investing in stocks is exposed to considerable fluctuations. Growth stocks, in particular, suffer from rising interest rates, and their intrinsic value falls. At the current correction levels, we find Alibaba and Meta Platforms interesting. Globex Mining shines due to its broad positioning and the lush portfolio of opportunities in the commodities sector.

    Conflict of interest

    Pursuant to §85 of the German Securities Trading Act (WpHG), we point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH (hereinafter referred to as "Relevant Persons") currently hold or hold shares or other financial instruments of the aforementioned companies and speculate on their price developments. In this respect, they intend to sell or acquire shares or other financial instruments of the companies (hereinafter each referred to as a "Transaction"). Transactions may thereby influence the respective price of the shares or other financial instruments of the Company.
    In this respect, there is a concrete conflict of interest in the reporting on the companies.

    In addition, Apaton Finance GmbH is active in the context of the preparation and publication of the reporting in paid contractual relationships.
    For this reason, there is also a concrete conflict of interest.
    The above information on existing conflicts of interest applies to all types and forms of publication used by Apaton Finance GmbH for publications on companies.

    Risk notice

    Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and the like on These contents are exclusively for the information of the readers and do not represent any call to action or recommendations, neither explicitly nor implicitly they are to be understood as an assurance of possible price developments. The contents do not replace individual expert investment advice and do not constitute an offer to sell the discussed share(s) or other financial instruments, nor an invitation to buy or sell such.

    The content is expressly not a financial analysis, but a journalistic or advertising text. Readers or users who make investment decisions or carry out transactions on the basis of the information provided here do so entirely at their own risk. No contractual relationship is established between Apaton Finance GmbH and its readers or the users of its offers, as our information only refers to the company and not to the investment decision of the reader or user.

    The acquisition of financial instruments involves high risks, which can lead to the total loss of the invested capital. The information published by Apaton Finance GmbH and its authors is based on careful research. Nevertheless, no liability is assumed for financial losses or a content-related guarantee for the topicality, correctness, appropriateness and completeness of the content provided here. Please also note our Terms of use.

    Der Autor

    André Will-Laudien

    Born in Munich, he first studied economics and graduated in business administration at the Ludwig-Maximilians-University in 1995. As he was involved with the stock market at a very early stage, he now has more than 30 years of experience in the capital markets.

    About the author

    Related comments:

    Commented by Fabian Lorenz on February 21st, 2024 | 07:00 CET

    Top news: BYD, Bayer and Globex Mining

    • Mining
    • Gold
    • Commodities
    • Electromobility
    • chemicals

    Bayer shocked investors yesterday with the announcement of its dividend cut, which shouldn't have been much of a surprise. The Company is burdened with high debt, endless legal fines, and an empty pharmaceutical pipeline. In an initial reaction, analysts have lowered the share price target. BYD, on the other hand, is doing well operationally. Only the share price is not picking up. Will a share buyback turn the share price around? For those who want to profit from the commodity boom with reduced risk, then Globex Mining's stock is attractive. The news flow is strong, and those who act quickly can still register and follow the live presentation of the mining incubator at the 10th International Investment Forum, IIF, today.


    Commented by Armin Schulz on February 13th, 2024 | 07:00 CET

    TUI, Globex Mining, Palantir - Movement is possible here

    • Mining
    • Commodities
    • travel
    • Software

    Investors should have TUI, Globex Mining and Palantir on their watchlist, as they could be on the verge of movement. While TUI, as a leading tourism company, is showing signs of recovery after the pandemic, Globex Mining promises important impetus for the future of the industry and green technologies with its broad commodities portfolio. Palantir, on the other hand, known for its advanced data analytics platforms, is on the brink of significant growth opportunities in an increasingly data-rich era. In this context, movements are possible, and as an investor, one would want to be invested early. We highlight the potential of the three companies.


    Commented by Stefan Feulner on January 31st, 2024 | 06:30 CET

    Rheinmetall, Globex Mining and Hochtief with trend-setting impulses

    • Mining
    • Commodities
    • armaments

    The last week of January promises further excitement on the global stock markets. This week, none other than the Magnificent Seven will report on the past financial year and provide further forecasts for the future. In terms of figures, things are still relatively dull in Germany. Nevertheless, news that significantly impacts the respective companies' share prices is reported almost daily. In addition to the pharmaceutical giant Bayer, another company had to take a hard knock in court.