🎈Pika World Update- First Quarter GDP Indication🎁

Given the virus is still looming worldwide, it is now expected that the outbreaks will dent the economic growth for the first quarter. As a result, Moody is now expecting the GDP growth for 1Q2022 to fall from 5% to 2%. This is a sharp downward revision. 

The relief is that analysts mostly expect subsequent quarters to offset the first quarter’s poorer performance. Nonetheless, the average daily new cases in the US based on weekly indicators appear to rise. 

People are eating out less. Fewer Americans are dining in, which is 28% below the pre-pandemic levels. It is the biggest fall since April. Likewise, we also see an impact on the labour force. The personal-services sectors are seeing a fall in average weekly hours for employees in New York City, which is the key region hit by Omicron. 

All this indicates that we could see some significant weakening in consumer spending.

🚘Tesla: Selling is almost done🚖

We have seen Elon Musk continue selling his management stock options. Most reports suggest that he is almost done selling the 10% of his holding. He is almost near his goal, as some tally indicate that he sold transaction points to around 9.2%. 

Pika World stays vested in Tesla as we see more promising catalysts ahead. 

📱Amazon: Back in Spotlight📠

While big technology is expected to face pressure from an interest rate hike, Amazon appears to be a darling for some analysts. This is because the company presents a rare opportunity for the future. It has about 40% of the US e-commerce market and around half of the high-margin cloud computing sector. A rare breed indeed.

Valuation isn’t cheap as it is trading at about 66 times its expected 2022 earnings. Investors like Amazon’s AWS business and advertising business which is high margin. Some analysts are seeing it hitting $4300 as a price target. Indeed, a huge opportunity is seen in the retail and cloud computing segment, a lucrative market. 

AWS brings about $60 billion in sales annually, which could be worth $1 trillion if it is a standalone business based on some analysis. 

Pika World is looking for an entry opportunity in the e-commerce behemoth. 

It is 30 December, Thursday, 8.15 am in Singapore and 8.15 pm in New York. We are perhaps seeing lower trading volume and possibly more volatility ahead. 

Pika World wishes all a productive day ahead!