Stock Market Recap - Assignment Example

unit 10 June Stock market recap The stock market is one of the opportunities for investments and capital source. Price changes determine returns after a period, and below is a recap of three stocks and decisions over the stocks. Facebook IncDynamism of Facebook Inc that has made it popular and promises sustained popularity informed its choice. Its continued expansion that ensures consumers’ utility and guarantees its sources of revenue identifies the company’s short-term and long-term sustainability and safety of investments in its stock.

It has expanded its applications through product acquisitions and this is likely to continue in the future. In addition, its popularity as a social media informed the choice. I would buy more shares of Facebook Inc. Even though the company’s daily stock prices appear volatile and with a decreasing trend, increase in stock price is forecasted in the short run and in the long run. Analysts’ opinion predict significant and consistent rise in price that could reach a high of $ 114 per share in the next one year but $ 95 is most probable.

Risk of loss is minimal as a low of $ 80 is forecasted in a year. The forecast further suggest long-term price increase (CNN 1). Forecasted earnings per share that show steady increment (Nasdaq 1) also supports possibility of sustainable price increment to inform the decision to purchase more shares for long-term investment. Telsa Motors IncTelsa Motors promised continuous rise in stock prices and this informed its selection. A one-week consideration, before purchase, informed this and saw an increase by $ 13.

Information on possible launch of a new product by Telsa influenced the positive price change, positive experience with the proposed product is likely to sustain stock price increase, and the speculated rise in prices informed the selection. I would hold the current shares. Telsa Motors stock prices have gained, steadily, over the past eight weeks but a review of its trend before the eight weeks and investor analysts’ opinions suggest high risks. Divine (1) reports that previous discount initiatives could have influenced the current trend and that the trend may not be sustainable.

A one-year forecast on the stock price also identifies greater risk of loss and analysis recommend hold of the stock (Markets 1). The Walt Disney CompanyTwo factors that suggest sustained price increase of The Walt Disney Company informed its selection. Announcement of a movie influence positive price changes and while rise is likely to last for a while, opening of Disneyland Park in Shanghai is likely to influence further price increase. The two events informed a short-term investment prospects in the company’s shares.

I would purchase more of the company’s shares because of the company’s internal factors that suggest gains in stock prices in future. Subramani (153) explains that such factors as good news about a company and its performance influence its stock price and expected product launch and opening of Disneyland Park are examples. In addition, higher net income and earnings per share are predicted for the company and these are likely to make the shares attractive and push its prices (Marketwatch 1).

Purchasing for future sale promises great returns. Based on the analyses, I would purchase more of Facebook and Walt Disney shares but hold on the Telsa Motors shares. Works citedDivine, John. “Telsa (TSLA) stock to $ 1900? Try $ 100.” InvestorPlace. March 13, 2015. Web. June 10, 2015. .Subramani, Venkata. Accounting for investments, equities, futures, and options. Hoboken, NJ: John Wiley & Sons, 2011. Print. CNN. “Facebook Inc.” CNN Money. June 10, 2015. Web. June 10, 2015. .Nasdaq.

“Facebook Inc. Earnings forecast.” NASDAQ. June 10, 2015. Web. June 10, 2015. . Markets. “Telsa Motors Inc.” MarketsFT. June 10, 2015. Web. June 10, 2015. < http://markets.ft.com/research/Markets/Tearsheets/Forecasts?s=TSLA:NSQ> Marketwatch. “Walt Disney Co.” MarketWatch. N.d. Web. June 10, 2015. < http://www.marketwatch.com/investing/stock/dis/financials>.