- (0:45) – Long Term Investing: What If You Invested In The High Flying Stocks?
- (10:00) – Creating A Strong Portfolio For Outperformance: Stocks To Keep On Your Radar
- (16:25) – It’s Never To Late To Invest: Company Valuations
- (19:40) – Episode Roundup: NVDA, AMZN, URI, PYPL, LULU, RH, EL, AMD, BKNG, JPM, BAC, UNH, JNJ, ULTA
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Welcome to Episode #277 of the Zacks Market Edge Podcast.
Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life.
This week, Tracey went solo to talk about the “myth” of the IPO.
You know the story. It has a headline like, “If you bought Amazon stock at the IPO, you’d have $XYZ millions.”
Yes, there are some IPOs that have been fantastic. But it’s not the only way to be a good investor.
You can buy stocks well after the IPO and still see great performance.
What If You Bought 5 Years Ago?
Let’s say you missed out on buying
Amazon
AMZN
at its IPO in 1997.
If you bought 5 years ago, the shares are up 374%. That’s outperforming both the
Invesco QQQ Trust ETF
QQQ
which is up 227% and the S&P 500 which is up 104.3%.
Or what about
NVIDIA
NVDA
? It’s up over 35% since its 1999 IPO. But in the last 5 years it has gained 1,428%.
Other well-known companies, like fintech company
PayPal
PYPL
,
are up big over the last 5 years as well. PayPal has gained 646% during that time.
But even if you go outside of tech, rental equipment giant
United Rentals
URI
is up 370% over this time period. That’s similar to Amazon’s return.
Not Every Stock Will Be a Big Winner
But these are just a handful of stocks that have outperformed in the last 5 years. Other popular growth stocks haven’t.
Bookings Holdings
BKNG
, formerly known as Priceline, is up just 80% over the last 5 years, underperforming the major indexes.
What else do you need to know about IPOs and buying stocks years later?
Tune into this week’s podcast to find out.
[In full disclosure, Tracey owns shares of AMZN and BKNG in her personal portfolio. And no, she didn’t buy either one at the IPO.]
Bitcoin, Like the Internet Itself, Could Change Everything
Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities.
Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.
See 3 crypto-related stocks now >>
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