September 26th, 2022 | 14:10 CEST
Amazon, First Hydrogen, Shell - Profits are now being made on the stock market!
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"[...] Why should a modular electrolyzer cost more than a motorcycle? [...]" Sebastian-Justus Schmidt, CEO and Founder, Enapter AG
Amazon is and remains a world market leader!
The Amazon share has lost about 33% within a year. Today, it is possible to buy a percentage of the retail giant and tech company for under USD 100. At this level, Amazon is trading in the range of prices from early 2020, when the Corona pandemic was just beginning to emerge. Since then, Amazon's sales have soared. Between 2020 and 2021, revenues climbed from USD 386 billion to USD 469 billion. Even if 2022 sees a regression in the wake of inflation, the level is still likely to be well above 2020. While Amazon's margins are also under pressure and analysts expect business to be less good, this development should already be largely priced in. Investors should now focus on Amazon's business model - it is still unbeatable.
For many of us, Amazon is the first address when it comes to errands - a click is always faster and less complicated than driving to the store. What is more, Amazon has long since arrived in our living rooms. The potential for sales and rich profits is greater today than ever before. Especially given inflation, investors should think long-term and invest assets and savings with foresight. Global market leaders are always a good address. An entry in tranches is a good idea, especially because of the ongoing correction - at least in the long term. Amazon remains an alternative.
First Hydrogen: This share has a special boom
One company that could mean a crucial piece in the puzzle for Amazon's sustainable success is First Hydrogen. The Canadians want to make hydrogen delivery vehicles socially acceptable - the target group: delivery services and logistics companies. Light and heavy commercial vehicles are responsible for around 35% of global traffic emissions, which is why responsible companies like Amazon want to start in this area. Just a few weeks ago, Amazon acquired a stake in Plug Power, probably the best-known supplier of fuel cells. The young company First Hydrogen is collaborating technologically with Ballard Power and AVL Powertrain and plans to launch the first trials of hydrogen vehicles under real-world conditions in 2023.
In light of climate change and the energy crisis, the entire hydrogen sector is in the midst of a boom. First Hydrogen's stock managed a one-year return of around 130%. Most recently, the value corrected in the wake of the general market turmoil. The fact that First Hydrogen is a growth company is also likely to favor the volatile price trend. Investors should be aware that such price movements are the rule rather than the exception for growth stocks. More so than in the case of Amazon, investors should enter First Hydrogen on an anticyclical basis and in tranches. The opportunity for this is getting closer and closer. First Hydrogen can deliver solutions globally and has the spirit of the times on its side. The company is worth a look. On September 27, the Company will present at the virtual 4th International Investment Forum - IIF. Interested investors can register for free at: ii-forum.com/speaker/robert-campbell-ceo-first-hydrogen-energy
Shell: More than oil and gas
The current outlook for companies like Shell is anything but bleak. The former oil and gas multinational has long been active in the field of renewables and believes in hydrogen solutions. But as long as fossil energy is urgently needed, Shell will continue to supply it. The business is currently still divided into about 70% crude oil and 20% gas. But other business areas are catching up. For example, Shell is building the largest plant for renewable hydrogen in Europe in the Netherlands. The Company is enjoying a special boom due to the high energy prices. The share price has risen recently, but not very significantly. Since energy prices are expected to remain high for some time, this represents an opportunity for investors.
Also positive for Shell is the dividend yield of 2.8% and the ongoing share buybacks. However, in terms of growth fantasy, Shell falls behind Amazon and First Hydrogen. The latter company, in particular, holds opportunities for exorbitant profits - with some risk - due to its early stage of development. However, the three stocks mentioned underscore that there are opportunities even in the current market environment - depending on the investment horizon and asset situation, investors should stay on the ball and at least cautiously seize opportunities. There are enough companies with prospects. Thanks to different business models, investors have every opportunity to add stocks according to their personal risk-reward inclination.
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") may hold shares or other financial instruments of the aforementioned companies in the future or may bet on rising or falling prices and thus a conflict of interest may arise in the future. The Relevant Persons reserve the right to buy or sell shares or other financial instruments of the Company at any time (hereinafter each a "Transaction"). Transactions may, under certain circumstances, influence the respective price of the shares or other financial instruments of the Company.
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