GreenBox Advisory

  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 ...

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...

With the rise of technology, Nvidia(NVDA) has become a driving force in the chip-making industry. They are known for their graphic processing units(GPUs) and system on chip units. The rise of gaming and crypto mining has helped Nvidia grow because the chips that they produce are in high demand in these growing industries. Since esports is becoming more popular among Gen Z individuals, Nvidia will continue to feel its impact by seeing consistent revenue increases. Similarly, the rising popularity of cryptocurrencies such as Bitcoin and Dogecoin has attracted individuals to mine their own bitcoin in hopes of becoming rich. However, mining is an arduous process so it requires a strong GPU, and Nvidia processors have become in high demand for miners. Although there has been a chip shortage the past year, it hasn't stopped them from beating analysts' EPS predictions every single time for the last three quarters. As the chip shortage comes to an end, there is a strong upside for Nvid...

Inflation is currently the worse that it has been in the past 30 years. The partial cause of this rampant inflation can be attributed to the Federal Reserve's inaction. However, a combination of government stimulus, a supply chain shortage, and rising wages are causing inflation to go above the Federal Reserve’s 2% target.  Inflation is costly for everyone in the economy and especially low income individuals as it can be seen as a universal taxation. The only way to adapt to an increase in inflation is by investing your money.  Signs of inflation have already been acknowledged a few months ago, but the Federal Reserve did nothing to address it and still kept interest rates at near zero levels because of they wanted to decrease unemployement. Their low interest rates postition had adverse consequences because it causes companies and individuals to keep on investing and spending in an economy that is already on the rise which is leading to higher prices and inflation.  Addi...

Occidental Petroleum(OXY), an American oil company located in North America, the Middle East and, and South America, is working on a project that extracts CO2 from the air produced by factories. United Airlines(UAL) is also investing in this project which shows that this project has promise for expanding into other sectors and becoming a leader in CO2 extraction. The stock is currently priced at $28.32, and has been up over 60% since the beginning of the year. It is projected to reach $42 or 43% by the end of the year(CNN Money). Also, 9 out of 28 analysts has a buy rating on the stock while 16 have a hold, but in the long-term, this stock seems worth the buy since it is currently at a discount and will have potential to increase a lot more in the future. Positioned well below their 52-week range of $32 allows them much flexibility for their stock to increase. OXY's net income has been on the increasing trend from 2015-2018(2019-2020 data not available) with its net income quadrupl...

  You probably haven't heard Microsoft(MSFT) on the news for anything crazy the past decade, but Microsoft has been quietly growing ever since it moved its focus towards cloud. Microsoft has a current valuation of $1.93 trillion and is on route to join Apple as the only two companies to reach $2 trillion. Microsoft has been on a roll this year going up over 17% and increasing over 54% in the past year showing their strong performance. Microsoft is working to acquire AI and speech recognition company, Nuance Communications(NUAN) for $16 billion. If Microsoft were to successfully reach an agreement with Nuanace, it will help them with their expansion into the health care industry. A combination of their cloud services with AI software can help hospitals transition into the digital age and let them provide better services, while also benefitting Microsoft. If Microsoft can settle the deal, Microsoft is a definite buy for the long run.

The pandemic and the rise of the digital age has sped up the decline for companies who haven't adapted to these changes in society. A few of these companies were some of the most successful, but as time  passed they are falling like the Roman Empire. Two of the most talked about companies in the past month were  AMC Entertainment Holdings Inc(AMC) and GameStop Corp. (GME) because investors tried to inflate the stock price. However, these companies don't seem to have a bright future as people switch to digital platforms.  The closure of movie theatres because of the pandemic was a big blow to AMC as most of their business comes from people going to their movie theatres causing them to lose around $4.6 billion dollars in 2020. Even once COVID-19 starts to die down, people will still be wary going into movie theatres as there are many other options to stream movies safely at home such as Disney Plus, Netflix, Amazon Prime Video, Hulu, HBO Max, and much more. Also, ...

The bond market's recent surge has been fueled from the fears of inflation caused by the 1.9 trillion stimulus package. Investors are fearful of that this huge package will cause inflation because the demands in the economy will increase without the limited supply which will cause prices to skyrocket and devalue the USD. The only way to combat inflation is to increase interest rates because it will encourage more savings, such as in a bank, and less spending such as taking loans to buy a house. The U.S. 10 Year Treasury bond has been up almost 40% the past month to 1.572% which further shows the threat of inflation is real because the interest rates rising shows inflation fears are real and needed after all this money being added into the economy.  The S&P 500 and Nasdaq Composite have been taking some hits in the past few weeks and is starting to show the end of the bull market and the start of the bear market. The Nasdaq has been down almost 10% in the past month an...