Identifying The Companies To Invest
Identifying The Companies To Invest
Identifying The Companies To Invest
Introduction:
Strategic PR is a Canadian firm, working successfully for over 7 years in the industry. It has
been to able to capture large audience with its excellent services. The customer’s survey found it
to be a trustworthy and best service provider company in the industry. By building long- term
relations with customer, it has high ratio of customer retention. Along with being the first choice
for customers; Strategic PR also maintains an investment portfolio and seeks to use its earning to
expand. Thus, three partners of company: Mr. David, Mr. Harvey and Ms. Becker requested to
analyze the best companies for investment; keeping in view the on-going technological waves.
To achieve this purpose, I conducted research on the number of companies. Owing to the current
technology advancement; some of the factors were taken into consideration for future reference
such as clean energy, electrical vehicles, artificial intelligence; and some internal factors, SWOT
analysis, Porters 5 forces and ratio analysis. All these analysis helped in determining the top
- Clean Energy: with the rise of climate change issue; the world is shifting to clean energy to
- Electrical vehicles: the carbon emissions from cars have been adding to the alarming
- Artificial intelligence: it is here to stay, from Facebook to Netflix all uses AI to know about
can be destroyed. Online world is real and taking over the world.
Investment decision:
The golden rule of investment is to have a diversified portfolio; never put all your eggs in one
basket. Thus owing to above technological and also internal factors of the company; following
are three companies option to invest, not only for greater return, but for a safe investment future:
- Tesla Energy
- Netflix
Tesla:
Company Profile:
Tesla was founded in 2003 by engineers who before time shifted to electrical vehicles
production; owing to the current climate change crisis the world is facing. Now Tesla not only
make electrical vehicles, but also the clean energy generation and its storage products-solar
panels- moving towards a zero emission future. In order to ensure sustainable future, Tesla
manufactures energy solutions such as Powerwall, Powerpack, and Solar Roof. In order to
minimize the cost, Tesla have bring in battery cell production, producing equivalent to the
production goals. In 2020, Tesla surpasses General Motors and Ford to become the most
SWOT analysis:
- Innovation
Opportunities Threats
Analyzing the company SWOT, the company have great opportunities and have also been
zero-emission.
Ratio Analysis
EPS 1.44
Analysis
Countries are focusing to move towards eliminating greenhouse gases to overcome the global
warming effect. Cars are the major source of greenhouse gases emission- the smoke not only
effecting environment but also causing health deterioration. Tesla electrical vehicles is the future
Over the last few years, company is earning a good and stable profit- making investment secure.
Although the competition is increasing, but the company is also moving to advancement and
Netflix:
Company Profile:
Netflix and Chill! One of the most heard phrase in last two years. Netflix is one of the biggest
entertainment platform with 214 million paid subscription in over 190 countries. It is a true
example of innovation, founded in 1997 as DVD renting service on mail; and then switching to
streaming platform- video on demand and then finally the online streaming website, ranking at
164th on the Fortune 500. Company is growing over the years- especially during pandemic time,
it has seen an upward shift in growth. Many believe that it was a short-term growth; however the
numbers says a different tale. The world has gone back to normal, but the number continues to
increase- due to the reason that generation and even how we want to have entertainment served
has changed. Netflix recently presented Netflix party allowing people to enjoy movie together
SWOT analysis:
Strengths Weakness
- Greater offerings
Opportunities Threats
share
- Niche marketing - Economy factors- high inflation
- Content production
Ratio Analysis:
EPS 3.19
Analysis:
Although many new competitors are coming in; Disney was able to attract 174 million audience;
but still Netflix have greater competitive advantage due to its customer oriented price.
PE ratio should be low, and Netflix Price-Earning ratio is not expensive selling at $67 only with
Untapped markets:
Netflix has been successful in capturing the untapped markets, and even moving to developing
yet populated nations; India alone provided 9 billion profit in year 2020.
Reed Hasting have been recognized as competent executive- ability to take risk and innovating
over time.
Conclusion: