The first half of the year was a sort of a roller coaster race for shares – and investors. Although the three main clues have now gathered in positive territory, it was not the story a few weeks ago. THE S&P 500 index, the Industrial average Dow Jonesand the Nasdaq Composite Each has flowed in the first months of the year with regard to the concerns that the import pricing plan for President Donald Trump would harm the economy, profits and performance of shares.
Since then, positive signs, such as initial commercial transactions and strong profits reports, have attenuated the spirit of investors and, consequently, the clues have rebounded. However, certain growth stocks, such as certain actors of artificial intelligence (IA), remain in the slump and go to a drop in the first half. Let’s take a look at two that could be ready for a comeback in the second half.
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As Trump announced His price planinvestors were concerned about what it could mean to Apple(Nasdaq: aappl)In particular, because the company produces most of its iPhones in China, a country most targeted by prices. Although the president has exempted electronic products, this exemption is temporary. He even threatened Apple recently with a 25% rate on all imported iPhones.
Apple has taken a step to diversify its manufacturing base, promising that most American iPhones would soon be made in India, but this country also faces prices. All this price uncertainty weighed on Apple’s stock, pushing it to around 20% so far this year.
So why should we expect a return in the second half? Although Trump is serious about bringing manufacturing to the United States, it is unlikely that he and his administration will take measures to destroy some of the best companies in the country, including Apple. We have seen signs of flexibility in the initial trade of the United States with the United Kingdom and China, it is therefore reasonable to expect a compromise with technological companies that will not limit their growth.
Meanwhile, Apple is a well -established actor with a solid financial situation. The company has more than $ 48 billion in cash and marketable securities. Thus, he has the resources to meet the challenges. At the same time, the smartphone giant has a new growth engine in the form of services. Service income, thanks to the huge base of Apple installed devices, reached a record quarter after quarter. This growth should continue while Apple’s loyal users continue to rely on the company for data storage, digital entertainment, etc.
All this means that today Apple looks like a good deal, exchanging at 27 times Extreme profits estimatesMore than 35 times at the end of last year. These levels offer him a lot of space to run, and that can do that exactly this good news in the second period.
Soundhound ai(Nasdaq: Soun) is a specialist in Voice AI, with its technological food voices in car and restaurant control systems, to mention only two examples. The stock has dropped by 50% so far this year, but I see it as an opportunity to buy a reason to worry, and here is why.
First, after a 150% increase in Soundhound shares in the past year, it is not surprising that some investors have locked the gains in recent times. Second, growing companies – in particular young Growth companies – can find it difficult to develop during difficult economic times, so that investors’ concerns earlier this year have led to the sale of this type of actors.
Today, it is important to examine the performance of Soundhound’s profits and long -term perspectives. The company is in high growth mode, with income that discloses 150% in the last quarter because it widens its customers in various sectors. This is essential because the use between industries lowers risks, which means that if a customer or an industry suffers, Soundhound will not necessarily suffer from him.
Soundhound has many patents protecting its technology, a system that immediately translates speech into meaning without a text stage. This results in improved speed and quality.
Soundhound’s growth and rapid revenue of 29 million dollars in the quarter, as well as the size of the planned Voice of AI of $ 140 billion, suggest that much more growth could be ahead of this voice specialist.
All this means that, like uncertainty about the elevators of the general economy and Soundhound continues to cause growth, the stock could roar higher in the second half.
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