A further decline in oil prices below the $50 mark saw a number of stocks follow suit, with investors remaining concerned that the global economy might be showing signs of weakness. Money Map Press, Keith Fitz-Gerald, who is bearish on the market, maintains that stocks could sink a further 5% this month.
During an interview on Fox Business, Fitz-Gerald remained skeptical on Amazon.com, Inc. (NASDAQ:AMZN), Tesla Motors Inc. (NASDAQ:TSLA), and Twitter Inc. (NYSE:TWTR) reiterating that the stocks could be some of the biggest losers this month. The analyst is especially bearish on Tesla Motors Inc. (NASDAQ:TSLA)’s prospects going forward affirming other analyst’s sentiments that competition could be a major headwind for the giant electric company.
“I think Tesla Motors Inc. (NASDAQ:TSLA) is the most innovative company on the planet, No I would not buy it here. It is going to break $200. The better alternative for investors who are interested is VW because it got access to innovative battery technology delivered in 2015,” said Mr. Fitz-Gerald.
Tesla Motors Inc. (NASDAQ:TSLA) impressive run for the better part of last year came to a halt IN 2014. After a number of players in the auto industry reiterated desire to release their own electric models going forward. The stock has since been pounded by overpriced sentiments that have resulted in it plummeting in the market.
Amazon.com, Inc. (NASDAQ:AMZN) is another stock that did not have an impressive run in 2014 with its share price losing a substantial amount of value. December shopping spree might have rejuvenated confidence that the company could report impressive earnings waiting to see if this will have any impact on the stock price this quarter
Fitz-Gerald maintains that Amazon.com, Inc. (NASDAQ:AMZN) remains overrated in the market having been operating as a monopoly in the past. The analyst expects Alibaba to offer Amazon the biggest threat in terms of competition going forward; something that might considerably affect its earnings.
Twitter Inc. (NYSE:TWTR) is one company that continues to face immense competition in the social media platform. The Company is also being given a run for its money on the advertising front especially from Google Inc. (NASDAQ:GOOGL).
“I don’t like social media stocks in general but this one in particular has no business in a legitimate investor’s portfolio. Management has checked out numbers are going in the wrong direction, users are in decline,” said Mr. Fitz-Gerald.
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