Momentum investing is based on the “factor strategy” in which you invest in stocks that have depicted a rise in value faster than the other stock in the markets.
Momentum investors believe that the stocks that outplayed the market will continue to do the same. The factors that influenced this enormous outperformance will not disappear just like that.
Such investors purchase the stocks, further increasing their price and pushing the stock at even much higher space.
Growth stocks refer to any share in the stocks of a company dedicated to increasing investors’ capital. Such stocks seldom pay out dividends as they invest the company’s earnings to accelerate its growth. Growth investors intend to earn from the capital gains that these growth companies make.
Tesla, Inc. (TSLA)
Tesla, Inc. was formerly called Tesla Motors and has grown to become one of the largest producers of electric vehicles under Elon Musk’s supervision. NASDAQ lists Tesla with the ticker symbol TSLA.
Tesla joined the S&P 100 and S&P 500 in December 2020. Tesla has outperformed the Automotive industry in the past few years.
It is believed that Tesla has the benefit of being the first-mover with e-mobility, the edge of technology, and software.
Tesla went public in 2010 and offered 13.3 million shares at 17 USD per share. Five years ago, Tesla accounted for 45 USD per share. And in 2021, the stock hiked to around 800 USD per share.
This shows the immense growth in the Tesla stocks in just five years. In the year 2020, Tesla rose about 700%.
It has been a highly volatile road for Tesla with a lot of controversies associated with it. But at current times, Tesla is larger than Honda Motor Co. (HMC), Toyota Motor Corp. (TM), and General Motors Co. (GM) all combined.
All of these combines took their inspiration from Tesla to manufacture their own automobiles.
The total earnings of the company grew by 46% year over year to about 10.74 billion dollars.
Netflix is an American OTP (over-the-top) content platform that was founded in 1997 in California. It is listed on NASDAQ with the ticker symbol NFLX.
In 2020, the total revenue of Netflix was 2,499.6 crores USD. Netflix went public on the 23rd of May,2002, with an IPO of 15 dollars per share. From 201 to 2019, Netflix was the best performing stock in the S&P 500.
In 2004, Netflix stock closed at 37.30 dollars per share. And today, the value is 557.28 dollars.
In January 2021, the company recorded a hike of 8.51 million fresh subscribers availing its streaming services, topping the 6.5 million estimate of Wall Street.
The officials of Netflix stated that the company no longer needs to borrow money to generate enough money to power up its growth. At the end of the year 2020, there was a sum of 203.7 million subscribers of the streaming service company.
The company also anticipates free and positive cash at break-even point 2021.
Competitors of Netflix include Walt Disney, Amazon Prime, Hotstar, and Apple TV+. But Netflix still expected to remain on top.
The stock is available with all leading online brokers like 101investing, which provide trade and investment in a wide range of assets and trading products.
Microsoft Corp. (MSFT)
Microsoft is one of the largest technology-oriented companies which sells cloud computing services, computing devices, softwares, and other such products. NASDAQ lists Microsoft with a ticker symbol of MSFT.
The company was founded by Paul Allen and Bill Gates in 1975. In the year 16, the company went public by raising 61 million dollars in its IPO.
Many experts and analysts referred to the Microsoft stocks as “the deal of the year”. By the late 80s, Microsoft managed to become the most prominent personal computer software corporation.
In 2016, the stock of Microsoft closed at 62.14 USD, and looking at its current price; the valuation is hiked to 243.70 USD. In October 2020, the company’s total revenue was about 3.2 billion dollars, which were about a 12 per cent increase from the previous year.
The commercial cloud earnings rose by 31 per cent (15.2 billion dollars) from last year.
Recently, Microsoft has developed its own semiconductor chips that can be used in its servers supporting the Azure cloud computing service and power its personal computers.
Apple Inc. (AAPL)
Apple is a globally renowned tech company that manufactures, designs, and sells wearables, personal computers, smartphones, accessories, and tablets. NASDAQ lists Apple under the ticker symbol AAPL.
Apple’s core products are the iPhone, Apple TV, Apple Watch, and Apple computers and laptops. The core and rapid-growing services include Apple Music and Apple TV+.
Apple has been one of the major corporations to acquire small technology-oriented companies that can be easily connected and imbibed to its extensive line of products and services.
In 2020, the company recorded a revenue of 64.7 billion dollars. At the end of 2016, the companies closed their stock value at 28.96 USD. Currently, the stock is valued at 133.19 USD per share, which is enormous growth.
Recently, Apple announced that it would cut the standard commission to half for small app developers, from 30 to 15 per cent. The primary qualification required is that the developer’s total proceeds from the Apple Store should be less than one million dollars.
The company stocks mentioned above are the top stocks for the reason that they have put in a lot of hard work and dedication to reach there. These companies are estimated to provide high returns in 2021 and the years to come.