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Amazon.com Inc. (AMZN)
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Microsoft Corporation (MSFT)
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NVIDIA Corporation (NVDA)
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Shopify Inc. Class A Subordinate Voting Shares (SHOP)
Q: How would you rank these four in terms of 1) current valuation 2) safety of invested funds (kind of related to current valuation I guess) 3) anticipated investment return over the next couple of years and overall quality of investment - ie. if you were to select only 1 or 2, in what order would you invest considering the overall quality/valuation of these companies? Thanks.
5i Research Answer:
Here are the price target and prospective return of these names based on the average price targets of analysts:
AMZN, Price Target (PT) – $204, return potential 22%
MSFT, PT – $465, return potential 16%
NVDA, PT – $741, return potential 8%
SHOP, PT – $110 (CDN), return potential 3%
We like them all, but given the overall quality, their valuation (safety of investment) and prospective returns, we are more inclined to add to AMZN and MSFT at the current valuations. And the order of preference based on quality/valuation would be MSFT, AMZN, SHOP, NVDA.
Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in AMZN, MSFT, NVDA.