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5 stocks to explore in the middle of the bear market; SHOP, NFLX, AMZN, JPM and CRM

The U.S. market appears to have seen some pretty choppy trading this year, particularly in the first half of 2022, with indices posting their worst first-half percentage decline in decades.

In addition, Russia’s invasion of Ukraine also weighed on global market sentiment, sending oil and food prices skyrocketing, further pushing up inflation. CPI data for June showed inflation in the United States jumped 9.1% on an annual basis, its biggest increase since 1981.

Mega-cap growth stocks, particularly in sectors like technology, consumer discretionary, etc., have come under pressure due to high inflation and the Fed’s aggressive tightening of its monetary support for the economy. tame.

On that note, let’s take a look at some US stocks that may catch investors’ attention amid bearish sentiment in the market.

Shopify Inc. (NYSE: SHOP)

Canadian e-commerce company Shopify said on July 8 that it had completed its acquisition of Deliverr, Inc., and it expects the merger to help it provide its merchants with a “one-stop shop” for logistical needs.

Shopify reported revenue of $1.2 billion in the first quarter of FY22, representing a two-year compound annual growth rate (CAGR) of 60%. However, the e-commerce giant posted a net loss of $1.5 billion this quarter, compared to a net profit of $1.3 billion in the first quarter of 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.

Year-to-date, SHOP’s stock has lost 70.29%. It gained 22.09% in one month.

Netflix, Inc. (NASDAQ:NFLX)

Netflix reported revenue growth of 8.6% year-over-year (YoY) to US$7.97 billion in the second quarter of FY22. It reported net income of 1. US$44 billion vs. US$1.35 billion in Q2 FY21.

The media streaming company said it expects revenue to grow 4.7% year-on-year to $7.83 billion in the third quarter of FY22. In addition, it also expects to add more than one million net new subscribers in the current quarter, he said.

NFLX stock has fallen 63.39% year-to-date while climbing 29.07% in one month. Its closing price was US$223.88 on July 21.

Amazon.com, Inc. (NASDAQ: AMZN)

Amazon recently announced plans to acquire One Medical for $3.9 billion, which could mark a giant leap forward in e-commerce in the healthcare industry.

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

In the first quarter of FY22, its net sales increased 7% year-on-year to US$116.4 billion. Despite the increase in revenue, it recorded a net loss of US$3.8 billion in this quarter, compared to revenue of US$8.1 billion in the first quarter of FY21.

AMZN stock is down 25.91% year-to-date while rising 13.67% over the past 30 days. Shares of the $1.25 trillion market cap company closed at $124.63 on July 21.

JP Morgan Chase & Co. (NYSE: JPM)

The New York-based investment and financial services bank has been reappointed as manager for a second tranche by the Florida State Board of Administration (SBA).

It recently released its second quarter results, where it recorded revenue of US$30.71 billion, compared to US$30.47 billion in the year-ago quarter. It reported net profit of US$8.64 billion versus US$11.94 billion in Q2 FY22.

JPM stock closed at $115.32 on July 21, after falling 27.66% year-to-date and 1.11% in the past 30 days.

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Salesforce.com, Inc. (NYSE: CRM)

Salesforce.com is a cloud-based software company with a market cap of over US$183.80 billion. Its first-quarter revenue climbed 24% year-over-year to $7.41 billion in the first quarter of FY23. Its net income was US$28 million this quarter from $469 million. US in Q1 FY22.

For fiscal 2023, it expects revenue to be between US$31.7 billion and US$31.8 billion, suggesting an increase of around 20% year-over-year.

The CRM stock has fallen 27.34% year-to-date while rising 10.66% in one month. CRM stock closed at US$185.35 on July 21.

At the end of the line :

The S&P 500 index flirted with the bear market in June before reversing the trend this month. Year-to-date (YTD), the S&P 500 index has fallen about 16% while rising about 5% this month.

On the other hand, the tech-heavy Nasdaq Composite remains in the bear market, falling more than 23% year-to-date while climbing more than 8% this month.

Many investors predict that a more hawkish stance by the Federal Reserve in an effort to bring inflation back below its 2% target could tip the economy into a recession. However, recent comments from policymakers have allayed concerns of a full one percentage point hike at the Fed’s next meeting this month.