The New Year
is fast approaching and with it arises a mixed feeling of expectations and
apprehensions about what it will hold for everyone. How will the stock market
fare? Will the investors get good returns on their investments? Which stocks
look promising in the long run?
Many internet users are hooked on Facebook, Twitter and other social media sites. In recent times, Facebook has been working hard to live up its expectations of the $100 billion valuation (which it had on the day of his IPO), but its efforts have not paid well as it faces stiff competition from peers like Google Inc. in this field. The sales of Facebook related to advertisement too look quite puny as compared with those of Google Inc. and have not developed more than 10% in the consecutive quarters this year.
With a market
capitalization of about $73 billion that include options and restricted stock,
it closed last week at $26.81. Facebook has striven hard to be in tune with the
exclusive requirements of the advertiser and also restructured its marketing
team to become industry - friendly around the retail and the automotive sectors.
The month of
September saw its staff commence better marketing strategies by questioning
advertisers about their requirements. With this background, Facebook looks all
set to woo investors with a mobile ad strategy and revenue from the same will
append the income that it gets from its “Ad Exchange”, “Search” and “Gifting”
programs. So while some experts are of the opinion that Facebook shares may
fall down as many companies; feeling that they are not getting apt returns on
their investments here are pulling back, the new tactics could well act as a
new face for Facebook and aim to lift its stock price to higher levels.
Tablet
devices like the traditional smart phones (e.g. iPhone5) and iPads have become
quite common these days. Those companies that bring about a revolution in this
sector will have cause to see their stocks soar in value. Also those associated
with the Phablet, which is the consumer touch-screen
device having a screen between five and seven inches and which combines the facility
of a smart phone
and mini tablet will see brighter days ahead as far
as the stock market predictions are concerned.
Netflix
(NFLX) is a movie and television show rental service offering media to
subscribers through Internet streaming and through the US
The company’s
stock has been slipping in value due to bad news since more than a year. But
suddenly it looks as if Netflix will soon see sunny days. In the first week of
December a deal was announced between Disney and Netflix. While currently,
Disney’s movies and shows are being aired on Starz network and the company is also
searching for new paths for the distribution of its content, with effect from 2016,
Disney's titles from Walt Disney Animation, Marvel, etc. can only be watched by
Netflix's subscribers on the televisions, computers, phones and tablets. In
addition, from the year 2013, the pay-TV rights over all the new Dreamworks
releases will be taken by Netflix. All these are indications that Netflix could
bounce back and its stock could be a force to reckon with in the year 2013,
considering its advanced technology and enhanced interface with which the
company compiles data based on the habits of viewers and which content
producers desperately are in need of.
Eaton, a diversified
industrial firm (ETN) is soaring high with its shares having risen more than
18% year to date. The last ten years have seen the company revolutionize itself
from a cyclical truck-and-industrial equipment- maker into a power-management
company that lays prime importance on energy-management solutions; a spectrum
which has been witness to a strong material growth even as companies grapple
with issues of mounting energy costs and resourceful equipment. The company’s
stock has been performing well and now with the imminent acquisition of the Cooper
Industries, it will be profitable news for Eaton’ stocks, considering the
magnitude of the deal; the largest so far for Eaton, in fact, to the tune of
$11.8 billion. Plus there is the advantage of the increased exposure to the
North American market. All these conditions look favorable for Eaton to see its
stocks rise in value as we enter into next year!
About the author: Abby Joseph is a writer and investor in stock market. To know more about stock about latest stock predictions, visit here.
The views and opinions expressed herein are the author's own, and do not necessarily reflect those of EconMatters.
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