1 No-Brainer Gaming Stock For 2023

After witnessing unprecedented growth during the pandemic, videogame publishers are witnessing a reversion to the mean with a reversal to pre-pandemic lifestyles amid macroeconomic uncertainties driven by inflation and increased borrowing costs due to interest-rate hikes.

However, despite the softened demand in the broader industry, incumbents, like Activision Blizzard, Inc (ATVI), have cornered pockets of growth with proven blockbusters such as Call of Duty, World of Warcraft, and Candy Crush commanding a greater share of gamers’ pinched pockets.

The gaming giant looks to merge with Microsoft Corporation (MSFT) this year. It reported record net bookings for the holiday quarter and 2022, exceeding analysts’ expectations.

With continued investment in growing its development teams, robust product pipeline, live game opportunity, and ongoing focus on operational discipline, ATVI seems on course for another year of outperformance.

Could Generative AI rekindle the market’s ebbed interest in the metaverse?

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ATVI has dipped marginally over the past month to close the last trading session at $76.25. The stock is trading above its 50-day moving average of $76.10 and almost at par with its 200-day moving average of $76.40, indicating an uptrend.

Here is what may help the stock maintain its performance in the near term. Continue reading "1 No-Brainer Gaming Stock For 2023"

2 High-Dividend Stocks and How to Trade Them

Dividend investing has always been a great strategy to ensure a steady income generation irrespective of a stock's price movement.

Dividend-paying companies are mostly stable, profit-earning companies and these stocks are especially popular among those in or nearing retirement.

Of course, who doesn’t like having a little extra cash on hand? In fact, owning dividend stocks can help ensure returns from two sources, income from dividends and from share price appreciation.

So, in basic terms, a dividend is a payment made by a company to its shareholders. Mostly the dividend is quarterly, with the board of directors deciding the exact timing of the dividend and the size, which is primarily determined based on the company’s earnings and cash position.

Types Of Dividends

Cash dividends: This is the most common way companies pay dividends. The cash is directly paid into the shareholder’s account.

Stock dividends: Companies pay investors additional shares of stock instead of distributing any cash.

Dividend reinvestment program (DRIP): In this program, investors can choose to reinvest dividends received back into the company’s stock, often at a discount.

Special dividends: A company might offer a special dividend, which is a non-recurring distribution.

Preferred dividends: Preferred stock is a type of stock that functions less like a stock and more like a bond. Dividends on preferred stock are generally fixed, unlike dividends on common stocks.

How Do Dividend Stocks Work?

So, to receive dividends on a stock, you simply need to own shares of the company, and the cash will automatically be deposited into your account when the dividend is paid. Typically, companies pay dividends to share the firm’s profits with its shareholders. Continue reading "2 High-Dividend Stocks and How to Trade Them"

3 Stocks You Can't Go Wrong With

The stock market started the year on a positive note after a year filled with macroeconomic and geopolitical challenges.

The rally was driven by the Federal Reserve’s smallest rate increase since the beginning of the monetary policy tightening in March 2022 and Fed Chair Jerome Powell’s acknowledgment that inflation was showing encouraging signs.

However, investor sentiment has taken a hit lately as minutes from the central bank’s monetary policy meeting indicated that the rate hikes will not end anytime soon. The Fed officials believe interest rates need to increase and stay elevated until inflation reaches 2%.

The officials’ resolve was backed by the 0.6% sequential and 5.4% year-over-year rise in the Personal Consumption Expenditure (PCE) and the hotter-than-expected jobs report. The market expects the Fed to raise the fund rate beyond 5% this year.

However, JPMorgan CEO Jamie Dimon believes a soft landing is “still possible.” Goldman Sachs believes the chances of the American economy slipping into a recession are now just 25%, down from its previous estimate of 35%. Moreover, President Joe Biden recently said he believes the U.S. economy will not fall into a recession this year or next.

Given this backdrop, it could be wise to make the most of the strong uptrend in fundamentally strong stocks, The Hershey Company (HSY), Acuity Brands, Inc. (AYI), and Flowers Foods, Inc. (FLO).

The Hershey Company (HSY)

HSY engages in the manufacture and sale of confectionery products and pantry items. The company operates through three segments: North America Confectionery, North America Salty Snacks, and International.

It offers chocolate and non-chocolate confectionery products; gum and mint refreshment products, including mints, chewing gums, and bubble gums; pantry items, baking ingredients, toppings, beverages, and sundae syrups; and snack items. Continue reading "3 Stocks You Can't Go Wrong With"

3 Top Auto Stocks For 2023

Last year, the automotive industry’s growth was hampered by macroeconomic challenges, including rising interest rates, material inflation, and continued supply chain issues.

Industry estimates of new vehicles sold in the united states in 2022 range from 13.7 million to 13.9 million, representing a decline of roughly 8% to 9% from the 2021 level and the lowest level since 2011.

However, auto industry executives are cautiously optimistic about a rebound in new vehicle sales in 2023. Toyota Motor Corp (TM) expects U.S. auto sales to grow 9% from the previous year to about 15 million this year. Also, S&P Global Mobility and Edmunds project new vehicle sales to be 14.8 million, while Cox Automotive’s preliminary forecast is around 14.1 million.

Moreover, consumer spending remained strong in the first month of 2023. The Commerce Department reported last Wednesday that retail sales grew by 3% in January, exceeding the estimate of a 1.9% increase. A significant jump in auto sales primarily drove the gain in retail sales.

Furthermore, sustained demand for electric vehicles (EVs) should boost the auto industry’s growth. U.S. EV sales leaped by two-thirds over the past year. According to year-end figures released by market research firm Motor Intelligence, automakers sold approximately 807,180 fully electric vehicles (EVs) in the United States in 2022, up 3.2% year-over-year.

What do you expect the electric vehicles market share in the United States to be by 2030?

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Based on a report by Contrive Datum Insights Pvt Ltd, the global electric vehicle market is projected to reach over $1.10 trillion by 2030, growing at a CAGR of 23.1%.

Given the promising prospects, it could be wise to take advantage of the uptrend in auto stocks General Motors Company (GM), Stellantis N.V. (STLA), and Honda Motor Co., Ltd. (HMC) for outsized returns this year. Continue reading "3 Top Auto Stocks For 2023"

ChatGPT and AI Investing in 2023

Schools, colleges, corporate boardrooms, and even family dinners are all abuzz with the common topic of conversation: ChatGPT. It would still be an understatement to say that it has taken the world by storm.

The easily accessible chatbot signed up 1 million users in five days and amassed 100 million monthly active users only two months into its launch.

To put this in context, TikTok, the erstwhile fastest-growing app, took nine months to reach 100 million users.

Daily Visits OpenAI

Source: www.cnbc.com

Many users feel that ChatGPT may eventually have the power to disrupt how humans interact with computers and change how information is retrieved. To make things more interesting, its creator, which has launched the chatbot to demonstrate what it is capable of, is just getting started.

We delve deeper to find out what the hype is all about and how investors and traders may stand to benefit from it. Continue reading "ChatGPT and AI Investing in 2023"