March 28th, 2022 | 11:20 CEST
Who profits by it? Shares! Alibaba, wallstreet:online, Steinhoff
Buy, sell or hold? The stock market is sometimes turbulent. The war in Ukraine and its economic side effects, in particular, can cause events to spiral out of control. Investors have to react quickly to limit losses or seize opportunities. We highlight three stocks and explain how they are doing in the current unrest.
time to read: 3 minutes | Author: Nico Popp
ISIN: ALIBABA GR.HLDG SP.ADR 8 | US01609W1027 , WALLSTREET:ONLINE INH ON | DE000A2GS609 , STEINHOFF INT.HLDG.EO-_50 | NL0011375019
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Author
Nico Popp
At home in Southern Germany, the passionate stock exchange expert has been accompanying the capital markets for about twenty years. With a soft spot for smaller companies, he is constantly on the lookout for exciting investment stories.
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Alibaba: Russia business hurts
Alibaba's stock has been under pressure for months. First, Beijing fired back against its flagship company, suspecting too much power in the hands of overly progressive people, then came the imbalance in China's real estate market and the associated blanket aversion of Western investors to China. Since Russia invaded Ukraine, Alibaba's stock has shown a somewhat mixed picture; it was going up in the first days of the war, but now the price is increasingly crumbling. The reason: The sanctions against Russia: Meanwhile, it became known that AliExpress Russia is an important pillar of Alibaba in e-commerce. This business could be made more difficult in the course of the sanctions.
China is also in a quandary. Putin wants more support, but nothing more than verbal support has come around so far. China even spoke out quite diplomatically against war in general. And yet the market is pricing in a bloc formation. On the one side, it could be Europe with the US, and on the other, the warring party Russia with China. But is that realistic? China is dependent on the West and sells many of its products there. Also, China is the second-largest creditor of the US - the dependence on the dollar is also present in Beijing, and so is the interdependence. With Alibaba stock losing more than 50% over the past year, investors should slowly but surely throw up their hands. However, one should not forget that timing is twice as tricky in market phases such as the current one. However, Alibaba remains a well-positioned company.
wallstreet:online: Prices back at the level of a year ago
wallstreet:online is also well positioned. The media company has long been more than just a provider of stock market forums and financial websites. With its Smartbroker, wallstreet:online has long been one of Germany's leading providers and plans to continue growing strongly. The escalating national debts and the empty pension funds are drivers of the private age precaution. More and more former savers are making these investments on the stock market in times of zero interest rates and custody fees. Since wallstreet:online offers financial media and brokerage, synergy effects arise. Many brokers have to spend a lot of money on marketing. At wallstreet:online, customer acquisition also works via its numerous pages. In the long term, there are even plans to address the users of Smartbroker even more strongly when it comes to reacting to company announcements and media reports. If readers could trade directly from articles, that would benefit wallstreet:online's sales.
In any case, the volatile market phase is a gift for experienced traders. When prices shoot up and come back down, multiple trades and an active trading strategy pay off. After the Company reported a record year in 2021, sales are expected to increase by another 25% in 2022. Figures for deposit openings during the first months of the year also show that the current market environment is not dampening enthusiasm for the stock market. Since the share is trading today at the level of a year ago, but the Company is operationally further ahead, investors should pay closer attention to the value. wallstreet:online is an institution on the German capital market and will remain so.
Steinhoff only makes lawyers and brokers wealthy
An institution among gamblers is undoubtedly the troubled furniture group Steinhoff. For months, the legal dispute with shareholders caused a stir. Steinhoff was involved in an accounting scandal years ago, and shareholders demanded compensation. In the meantime, the dispute has been postponed, but it is far from over. The claims still exist, and a solution must be found by next year at the latest. Because of this, Steinhoff's operational situation is again coming to the fore. The Company could also be forced to sell shareholdings. The ups and downs at Steinhoff are only something for experienced gamblers. However, all in all, only the brokers involved and the lawyers accompanying the legal disputes surrounding the furniture group are profiting.
While the Steinhoff share is a hot potato and Alibaba is currently considered somewhat risky, wallstreet:online could even profit from the back and forth on the markets. However, it will be necessary for the markets to return to a solid upward trend in the medium term. wallstreet:online is perfectly positioned to benefit from a good stock market sentiment.
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.
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 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.
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