Stock Market Essay Examples

Essay about Investing and Monitoring the Stock Market

1660 Words7 Pages

Over the past semester in Economics I have invested in and monitored the stock market. I learned how investing in certain companies can be risky and proper research about the companies are detrimental before buying stocks. Three stocks that have influenced most of my financial earnings and losses include Twitter, Amazon, and Pepsi. I would like to introduce you to Twitter Inc., a modern and popular form of self-expression on the Internet. It provides users with a plethora of services including Twitter, an application that allows the user to share and distribute content to their followers. The company also owns Vine, a mobile application where users can create and share short looping videos, and #Music, another mobile application that…show more content…

Over the past semester in Economics I have invested in and monitored the stock market. I learned how investing in certain companies can be risky and proper research about the companies are detrimental before buying stocks. Three stocks that have influenced most of my financial earnings and losses include Twitter, Amazon, and Pepsi. I would like to introduce you to Twitter Inc., a modern and popular form of self-expression on the Internet. It provides users with a plethora of services including Twitter, an application that allows the user to share and distribute content to their followers. The company also owns Vine, a mobile application where users can create and share short looping videos, and #Music, another mobile application that assists users in finding new music and artist based on tweets. Twitter Inc. also provides a set of tools, public APIs, and embeddable widgets that developers can use to contribute their content to its platform. Twitter was founded in San Francisco in 2006. Today, Twitter has 255 monthly active users and 500 million tweets sent per day (Twitter Inc.). Unfortunately Twitter Inc. has failed to progress during the time I invested in their company. In December 2013 Twitter Inc.’s net income was -511,471,000 this number decreased by more than half it value to -132,362,000 by March 31st, 2014 (Yahoo Finance). Both of these net incomes over a quarter are negative numbers that indicate financial losses. The recent fall of stock prices seems to be the

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Stock Market Essay examples

1501 WordsSep 30th, 20147 Pages

AUTOZONE

Q#1. How has AutoZone’s stock price performed over the previous five years? What other financial measures can you cite that are consistent with the stock price performance?

AutoZone’s shareholders had enjoyed strong price appreciation since 1997, with an average annual return of 11.5%. Over the previous five years, AutoZone’s stock price has increased dramatically. On February 1. 2012 the stock price was $348 compared to the $125 on February 1. 2007. The strong price appreciation resulted from several occurrences; some of them are U.S. economy recession and share repurchase program. Auto-part business was somewhat counter-cyclical. Company’s growth and stock price were directly related to the economy and number of miles a…show more content…

As a result, ROIC will improve subsequent to a share repurchase. Here is a chart that shows the ROIC performance in the previous five years for AutoZone:

2011
2010
2009
2008
2007
ROIC
41.14%
34.44%
28.64%
25.87%
25.47%

The chart shows the strong increase of ROIC. It is noticeable that the growth was accelerated from 2008, when the economy recession occurred. Together with share repurchase program, this two effect had a large impact on creating a desirable ROIC. Taken all of these into account, AutoZone’s ROIC is indicating that the company offers a strong returns for its investors.

Q#3. How much of AutoZone’s stock price performance should we attribute to the share repurchase program?

Share repurchase program is strongly related to the increase of AutoZone’s stock price. Share repurchase program, as mentioned above, reduces the number of shares outstanding, and therefore, creates a strong EPS and increases the price of the stock. EPS is one of the most important measures that investors look at because EPS measures company’s performance. In 2007, AutoZone had 69,844 shares outstanding, while in 2011 the number of shares was reduced to 43,603. This led to an increase of 128% in EPS, from $8.53 in 2007, to $19.47 in 2011. Next, the stock price increased from $120 to $298 in the same time period. Given the same capital value for AutoZone Company, more

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