5 US stocks to explore amid bear market: SHOP, NFLX, AMZN, JPM, CRM

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5 US stocks to explore amid bear market: SHOP, NFLX, AMZN, JPM, CRM

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 5 US stocks to explore amid bear market: SHOP, NFLX, AMZN, JPM, CRM
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  • Shopify Inc. (NYSE: SHOP) said it has completed its acquisition of Deliverr, Inc.
  • On a year-to-date basis, SHOP stock lost 70.29 per cent.
  • Netflix, Inc.'s (NASDAQ: NFLX) revenue rose over eight per cent year-over-year (YoY) in Q2 FY22.

The US market appears to have witnessed quite a bit of choppy trading this year, especially in the first half of 2022, with the indices reportedly notching their worst first-half percentage decline in decades.

In addition, Russia's invasion of Ukraine has also weighed on global market sentiments, sending oil and food prices soaring, which further pushed up inflation. June's CPI data showed that US inflation soared 9.1 per cent on an annual basis, its biggest increase since 1981.

The mega-cap growth stocks, especially in sectors like technology, consumer discretionary, etc., came under pressure due to the elevated inflation and the Fed's aggressive tightening of its monetary support to tame it.

On that note, let's look at some US stocks that could gain investors' attention amid bearish sentiments in the market.

Shopify Inc. (NYSE: SHOP)

Canadian e-commerce firm Shopify said on July 8 that it has completed its acquisition of Deliverr, Inc., and it expects that the merger would help it provide its merchants with a 'one-stop shop' for logistics requirements.

Shopify reported that its revenue grew to US$1.2 billion in Q1 FY22, representing a two-year compound annual growth rate (CAGR) of 60 per cent. However, the e-commerce giant saw a net loss of US$1.5 billion in this quarter, against a net income of US$1.3 billion in Q1 FY21.

SHOP stock closed at US$40.40 on July 21, noting a market capitalization of over US$50.69 billion. Its price-to-earnings ratio (P/E ratio) was 309.95.

On a year-to-date basis, SHOP stock lost 70.29 per cent. It gained 22.09 per cent in one month.

Netflix, Inc. (NASDAQ: NFLX)

Netflix posted revenue growth of 8.6 per cent year-over-year (YoY) to US$7.97 billion in Q2 FY22. It reported a net income of US$1.44 billion compared to US$1.35 billion in Q2 FY21.

The media streaming company said that it expects its revenue to increase by 4.7 per cent YoY to US$7.83 billion in Q3 FY22. In addition, it also expects to add over one million new net subscribers in the ongoing quarter, it said.

NFLX stock fell 63.39 per cent YTD while soaring 29.07 per cent in one month. Its closing price stood at US$223.88 on July 21.

Amazon.com, Inc. (NASDAQ: AMZN)

Amazon recently announced its plans to acquire One Medical for US$3.9 billion, which could mark the e-commerce giant leap into the healthcare sector.

Amazon also said that its electric delivery cars from Rivian have started rolling out on the US streets. 

In Q1 FY22, its net sales rose seven per cent YoY to US$116.4 billion. Despite the increase in revenue, it posted a net loss of US$3.8 billion in this quarter compared to an income of US$8.1 billion in Q1 FY21.

AMZN stock decreased by 25.91 per cent YTD while increasing 13.67 per cent over the last 30 days. The US$1.25-trillion market cap company's stock closed at US$124.63 on July 21.

JP Morgan Chase & Co. (NYSE: JPM)

The New York-based investment banking and financial services firm was re-appointed as manager for a second tranche by the Florida State Board of Administration (SBA).

It recently reported its second-quarter earnings, where it posted a revenue of US$30.71 billion compared to US$30.47 billion in the year-ago quarter. It reported a net income of US$8.64 billion compared to US$11.94 billion in Q2 FY22.

JPM stock closed at US$115.32 on July 21, having tumbled 27.66 per cent YTD and 1.11 per cent in the last 30 days.

Top 5 Companies' Market Cap

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Salesforce.com, Inc. (NYSE: CRM)

Salesforce.com is a cloud-based software firm with a market cap of over US$183.80 billion. Its first-quarter revenue soared 24 per cent YoY to US$7.41 billion in Q1 FY23. Its net income was US$28 million this quarter against that of US$469 million in Q1 FY22.

For fiscal 2023, it expects its revenue to be between US$31.7 billion and US$31.8 billion, suggesting an increase of approximately 20 per cent YoY.

CRM stock plummeted 27.34 per cent YTD while increasing 10.66 per cent in one month. CRM stock closed at US$185.35 on July 21.

Bottom line:

The S&P 500 index flirted with the bear market in June before reversing course this month. On a year-to-date (YTD) basis, the S&P 500 index fell around 16 per cent while increasing around five per cent this month.

On the other hand, the tech-heavy Nasdaq Composite remains in the bear market, declining over 23 per cent YTD while soaring over eight per cent this month.

Several investors are anticipating that a more hawkish stance by the Federal Reserve in an effort to bring inflation under their two per cent target could tip the economy into a recession. However, recent comments from the policymakers have eased concerns over a full percentage point hike at Fed's upcoming meeting this month.


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