WHY I BOUGHT 0,000 ALIBABA/SKYWORKS TODAY

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Well good day there subscribers i hope you guys are all doing great out there i just want to let you guys know of a couple traits i placed a few hours before the market closed here today it’s about $10,000 worth into two different stocks and i kind of want to talk about why i bought some more of each of these stocks i kind of want to show you guys the price i bought

These stocks at how many shares i was able to get and things like that and kind of go through why i decided to go ahead and purchase some more of both of these stocks here today i hope you guys enjoy this just me kind of sharing this with you guys and i hit a thumbs up if you do by the way if you come to the conference you got less than two weeks to get your tickets

First link down there in the description and come spend a day with graham stefan and me around personal branding stock market investing real estate investing first off here alibaba so i bought some more alibaba shares those are a little over $5,000 worth of alibaba shares here 35 shares in total i got them for around one hundred and forty-four dollars and 12 cents

A share like i said just over a five thousand dollar trade there and i also ended up buying some skyworks solutions that i bought about 65 shares at $75 in 96 cents here that was just under a $5,000 trade so around $10,000 deployed in total there in skyworks in alibaba alibaba reported last week earnings skyworks just reported yesterday so i went and made some moves

There okay let’s talk about alibaba first okay so alibaba there are a few things reasons why i wanted to buy some more alibaba shares okay one is the month of the mobile monthly active users continues to increase at a pretty significant rate for this company if we look here in this latest quarter they now have six hundred and sixty six million mobile monthly active

Users okay of one of alibaba’s platforms are right that compares to about 549 million at the same time last year all right a significant uptake there all right then we look at the businesses across the board alibaba i always talk to you guys about i love this business because it has so many growth vectors going for in ali baba’s case this company grew revenues 54%

In the last quarter year-over-year that’s ridiculous okay but it’s strong growth across everything so it’s not just like their retail business actually their retail business is some of the i guess you say slower growth there right 25% in customer management as far as a china commerce retail 31% opping commissions there which is very nice numbers nothing to sneeze at

What impresses me the most is a cloud computing segment okay cloud computing we’re talking about revenues were up 90 percent year-over-year cloud is probably the most exciting business for alibaba in the future it’s very similar to what happened with amazon where amazon was building out their cloud business not a lot of people saw it now amazon a lot of amazon’s

Value is because of amazon web services and how much profit that’s starting to make amazon at this point in time all right so if we look here at the bottom line numbers okay as far as the bottom line a lot of their businesses lose their money right now on the bottom line all right it’s there the retail side of their business is what’s bringing all the profit on

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The bottom line the rest of their business is especially a lot of entertainment and whatnot that loses them money right now a lot of their food delivery and a lot of special things are trying to get done there these are things that are losing them money right now but have a great opportunity to make them a lot of money long term all right cloud computing is the

Most interesting thing because cloud computing is losing a slight bit of money right now because they’re continuing to expand on that top line there with the cloud business but what i see is in about a year to what one two three years is basically all of a sudden the cloud business in my opinion is going to go from you know worrying about just top-line growth in

Expanding and expanding expanding $0.12 its gonna start bringing a lot of money on the bottom line it’s very similar business model from their cloud business the amazon has with amazon web services where amazon web services lost to amazon money for quite a while why they continue to build that up but now you look at amazon’s business and amazon web services is

Actually much more profitable than their retail side of the business and the ceo of alibaba recently just a couple days ago came out and said that he expects the cloud business of alibaba to be bigger than the retail side of the business he expects that to be the biggest business for alibaba i do as well especially if you’re looking at it from the bottom line and

What that’s gonna do for the company but you know bottom line long term we just don’t know when the actual profits will start pouring in but regardless i want them to focus on grabbing market share for now because there’s so much up for stake here everybody’s trying to get in the cloud business and we know amazon microsoft or big players there i think alibaba

Has a great opportunity to be the number one or number two biggest player in cloud if you’re looking at the next five to ten years i think the only one that could probably beat them will probably be amazon in the end but i think alibaba has a great opportunity to make a massive massive cloud business in the future especially when you look at how much of an advantage

They’re gonna have in the chinese market we’re talking about 1.3 1.4 billion people there a massive amount of businesses almost all businesses are starting to go toward the cloud a huge opportunity no i was almost gonna buy some jd dot-com shares okay i was almost gonna buy some jd shares and jd today hit $21 it’s really interesting to me i mean i think jd has a

Big opportunity in retail what it came down to in the end you know well should i put some more money in baba or should i put some new money for the first time in jd what it came down to in the end for me in this move was jd doesn’t have nearly as many growth vectors going for it as alibaba alibaba has so many growth vectors going for it including the cloud which is

Like i said probably gonna be the biggest business and going in the future for the company there’s so many growth levers that i just looked at alibaba here at 140 something dollars i’m like i got it i gotta kiss some more alibaba that’s all i came down to an end when we’re looking at jd versus baba just more growth levers for bob okay no scott works solutions okay

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So scott work solutions reported earnings yesterday and a wall street did not take it well okay if we look at skyworks solutions right now there’s a company that’s now trading at a forty under nine okay afford p under nine is ridiculous for this business all right it’s been priced in like the you know when you start getting under afford p of ten when you start to

Get to those levels it’s basically like wall street saying like you have nothing going for you you’re not gonna grow any more something like that when really this company has a lot of unbelievable long-term growth vectors in it okay so if you look at scott works business there they are big and connectivity okay and you look at the self-driving movement in cars and

How that’s going to explore over the next you know five to ten years we’re going to go from a society where very few people have self-driving cars to over the next five to ten years then most people out there will have self-driving cars the 5g opportunity with connected home devices all these things got to be connected skyworks solutions is the perfect player for

All this ok wearables smart audio the speakers that go in homes and all this type of things all the connectivity this is all massive opportunity for sky work solutions they are executing on this already and these things are just getting more and more popular over time all right this is one of my favorite charts out of sky work solutions right here this shows you

What the opportunity was for sky works in past models of phones for instance versus what it’s going to be in 5g so if you’re looking back at the flip phone days right in the 2g movement skyward solutions really only had a possibility of about $3 worth of content per flip phone ok then we got to move into kind of like let’s say the dumb smartphone age where it was

Like phones that were almost smartphones but they weren’t quite smart phones they were like 3g phones remember you know $8 was about their opportunity per phone ok so they had about $8 worth of content to sell into a 3g phone 4g comes around and now it’s a much much bigger opportunity for them ok 4g phones represent about an $18 opportunity for them in a you know

A normal smartphone nowadays but in 5g we’re talking about a $25 opportunity her phone okay because of how many filters and bands are going in these these you know new future phones with 5g and whatnot it’s just a really really really big opportunity for skyworks then i think the market is just missing out on right now because it’s so focused on what’s going on

In the short term smartphone market all right and if you’re looking at this all right the mobile is not where the growth is you know analyst and whatnot and they’re like all you know high-end smartphones can’t grow and tablets can’t grow and laptops and maybe that’s true ok that’s probably true i think it’ll grow once again when actually 5g comes out but in the

Short term at least yeah mobile probably can’t grow and so it’s not a big growth vector for skywards solutions where the growth is going to be up for skyward solutions is the internet of things ok in all the emerging technologies like artificial intelligence virtual reality autonomous driving machine learning all those things are massive opportunity and all those

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Things are going to explode over you know between 2020 in 2030 okay so you’re looking at so many big growth vectors for skywards solutions in this stock is priced like it’s the end of the world right now and i’m just looking at and i’m like it’s not the end of the world this company has executed phenomenally in the past has executed amazing in the past so if they

Don’t execute on 5g it would pretty much be the first time ever this company has failed in a big way i believe in this management team a lot they’ve proven a lot over the last five to ten years why should i not believe in them executing on this vision they’re so well positioned for 5g that as 5g you know gets into the mainstream starting probably in the back half

Of 2019 and then from 2020 on it’s gonna be a mainstream thing right they’re so well positioned for this guys that i look at this darkness it’s just disgusting value in my opinion okay and all you’re gonna find right now is alibaba’s caught up in the short-term worries of what’s going on in china oh my gosh this is gonna be a recession these tariffs that whole

Situation that’s totally you know where alibaba is at right now and once again they just grew revenues 54% and they can grow revenues phenomenally regardless of what pretty much happens in china okay scoured solutions is caught in this negativity right now that short term analysts are talking about smartphones can’t grow they’re not gonna be able to grow units of

Smartphones right now especially the high end players like the apples and samsung’s that are you know still the skyworks biggest customers and that’s just the whole short-term worries right now and you see alibaba stock and scott work solution stocks at you know rate around 52 we close and i’m looking at him here and i’m saying i gotta get some more of these shares

Because it just if you’re looking at this from any type of 3 5 7 year basis these companies are like steel’s at this price in my personal opinion you know when i just look at it it’s just you you just literally look at the facts you look at all the opportunity in front of these companies and you see that you know in my opinion 3 5 7 years from now we’re gonna be

Looking at skyworks at $70 insane what a joke that was we’re gonna be looking at alibaba saying remember now that bob was a hundred and forty dollars a share you know cuz these companies just have such big growth opportunities in front of them so that’s why i went and did it guys deployed about 10k today and you know i’ll continue to be a buyer of stocks i’m not

A huge buyer in like november december january i usually start buying again in february but if these prices continue on some of these type type of companies that have big growth vectors in front of them and are trading at very low valuations i’ll continue to be a buyer over the next few months so hope you guys enjoy this hope you enjoyed me sharing this with you

Hit a thumbs up if you did thank you for watching and have a great day

Transcribed from video
WHY I BOUGHT $10,000 ALIBABA/SKYWORKS TODAY By Financial Education

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