Oil tanker in Gulf of Oman gets attacked causing oil stocks to rise but will stocks continue to rise today?

-

    The oil tanker in the Gulf of Oman was attacked yesterday which caused the oil market to rise helping boost oil stocks. The response to the attack had positive results on the oil market, but will they still have a positive effect today.
     I think that they will not have as much of an effect on oil stocks as they did yesterday because the market overreacted too much causing the high increase. The attack will only have a small effect on oil stocks today because it wasn't a major event and investors aren't worried that this event will happen anytime soon because the nations are trying to get to the cause and prevent this from happening again. This kind of news mostly have short term effects instead of long term effects because it doesn't have a large scale effect on the oil industry or companies. I feel that the stocks will rise a little bit today, but not too much.













Comments

Post a Comment

Popular posts from this blog

Is Iron Mountain Inc (IRM) a safe stock to invest in?

-
Image
  In the wake of the pandemic, people are using technology more than ever whether it is zooming at home or watching Netflix. Consequently, all these technology companies collect data from users in order to help improve their experience or even sell it to 3rd parties. Gathering all this data means that companies have the responsibility to protect the consumer by keeping their data safe from hackers or other entities.  Iron Mountain Inc(IRM) is an international company that "stores, protects and manages, information and assets". Over 7,500 companies use the services provided by Iron Mountain and out of the 7,500 companies, a majority of the companies are in the Fortune 1000. As the world becomes digitalized, more companies will need to use the services provided by IRM which will help their future sales and show that they have the demand in the future.  With a juicy dividend yield of 5.78%, it has similar dividend yields of oil companies, but without the volatility of o...
Read more

Does heavy spending by Oracle signal long term upside?

-
Image
  Oracle (ORCL) has recently increased its investments while many other technology companies right now are cutting down their investments and playing it safe. Oracle is a database and cloud software company based in Austin, Texas, and its main competitors in the cloud industry are Amazon, Microsoft, and Google.  Back in June, Oracle purchased Cerner Corporation, a healthcare records company for roughly $28 billion with the hopes of strengthening its cloud services. Although Oracle only makes up 2% of the cloud market, Oracle aims to compete with Amazon, Microsoft, and Google by building smaller data centers in more regions (Statista). By doing so, Oracle currently has data centers in 40 regions which is almost double the amount AWS has.  Expanding data centers does come at a cost since Oracle has spent over $2.44 billion in capital expenditures during the 2nd Quarter which is a 163% increase in their capital spending. The increase in spending has put Oracle as #1 for the ...
Read more

Micron Technology: One of the Biggest Hidden Stocks of this Year

-
Image
I believe Micron Technology(MU), a semiconductor producer, is a good investment because there is a long-term upside to the stock. Top U.S. semiconductor companies like AMD outsource their semiconductor manufacturing to Asian countries like China, but the U.S. and China’s relationship has soured which is causing the U.S. to focus on production here. To boost U.S. chip manufacturing, Micron has received a subsidy from the Biden administration which has allowed them to expand their market share in semiconductor production by investing $40 billion into building more chip-making factories in the United States. With U.S. companies focusing on buying semiconductors in the United States, Micron's large market share will help them sustain long-term growth in sales. Subsequently, it will boost investor confidence in the stock which will lead to stock gains. Although Micron’s stock has dipped in the past year due to a decrease in computer demand caused by lifted lockdown restrictions, this pr...
Read more