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Analysis of Apple, Eni, Amazon and Tesla stocks

Analysis of Eni stock

From October 2020 (€6.01 01/10/2020) to date €13.05 (+1.89% in yesterday’s session), Eni’s stock has known no rest. The stable growth of Eni shares continues, the result of a future-oriented diversification and corporate reorganization aimed at addressing the green and electric turnaround on a global scale. 

In a world where hydrocarbons seemed irreplaceable, for at least the past five years there has been a strong push for a green turnaround that brings with it electric power, which is also expanding rapidly, and Eni has not been caught unprepared. 

During the Capital Markets Day in November 2021, CEO Claudio Descalzi announced that in March 2022 the IPO Plenitude (Eni R&R as it was previously called by insiders) will be launched, a new company that will deal with retail, renewables and electric mobility. 

The IPO will attract new capital flows for the company, which aims to deliver 100% decarbonized energy to its customers by 2040, supporting Eni’s goals of zero net CO2 Scope3 emissions. The company currently has a portfolio of operating plants of 1.2 GW and aims to increase this to 6 by 2025 and 15 by 2030. At the same time, the electric mobility network will be expanded to 31,000 recharging points by 2030, with revenues of 600 million euro and EBITDA of around 100 million euro; Eni will still retain a majority stake. 

The future is green for Eni and Plenitude will lend a hand. 

Tesla can grow further

Tesla (TSLA) has come a long way since 2017. From being an automotive innovator and producer of electric cars, it has been able to achieve very high standards over time, offering a top-quality product and elevating the brand to a status symbol.

However, before deciding whether betting on Elon Musk’s “toy” is still a good idea, it is necessary to take a step back.

At its debut on the market, the American giant’s capitalization was $35 billion, today it is over 1 trillion dollars, astronomical figures that have seen the stock grow from $37 to $1106.22 in five years of history. 

The electric car market is booming and Tesla is certainly the player to beat, but it is equally true that competition from the historic brands of hydrocarbon cars has not been slow to arrive, albeit at standards that often fall short of expectations. 

The continuing quest for sustainability, fairness and innovation, despite the growing number of players, is leading the San Carlos-based company into a bright future, even if growth is not expected to be as exponential as in the last five years. 

Today, the share price is up 3.93% after an excellent last quarter in 2021. In short, there has been, there is and there will be growth, Tesla is the Apple of the automotive industry and will be even more so, especially in terms of perception.

Apple shares

Apple has grown 500% in just a few years

Apple stock at risk of falling?

With regard to the famous Apple, which yesterday closed with a +0.26% at $175.53, in many ways the same applies to the company of the iconic Musk. 

Apple Inc. (AAPL) in the last 5 years, starting from 30 USD (quotation), has reached a resounding +500% (489.82), +40% in the last 12 months alone, but not all that glitters is gold. 

Investors, either because of the strength of the brand and its products or because it is increasingly seen as a safe haven stock, have flocked to the stock, though this could be a wake-up call. Those who invest in technology stocks will have noticed losses of 30 to 70% from the highs on small and mid-cap stocks in recent weeks. 

To simplify my concerns about growth at these levels in the future, I would say that given analysts’ estimates that the stock will grow an average of +12% per year over the next three to five years versus +19% average annual growth over the last 10 years, and despite a capitalization of about $3 trillion, I don’t see sufficient reason to justify doubling the price/earnings (P/E) ratio from 15 (historical average) to 31 (double that in essence). 

Amazon will return to growth in 2022

After a strong 2020 (+76%), Amazon (AMZN) went into standby mode in 2021, growing by a measly 5%, but what is the sentiment for 2022?

Many analysts are predicting +30% for this year, with a price target of $4500 at 12 months, including Brian White (Monness Crespi Hardt). 

We expect strong growth in revenues and margins over the next five years given the enormous potential and substantial growth in earnings per share, which are assumed to grow at an average annual rate of 36% (5-year horizon). 

For all these reasons, the big tech company from Seattle is a buy for most analysts. All that remains is for us to reflect and act. 

George Michael Belardinelli
George Michael Belardinelli
A former corporate manager at Carifac Spa and later at Veneto Banca Scpa, blogger and Rhumière, over the years he has become passionate about philosophy and the opportunities that innovation and the media make available to us, in particular the metaverse and augmented reality