ETSY - Perhaps the Next Amazon?
Although Etsy was founded in December of 2012, it hasn't been well known to the public until recent years. It received some attention in 2018 but its big debut came with the COVID-19 pandemic. The service proves a market for self-employed crafters and artists wanting to sell their handmade products. This type of service is beneficial for 2 reasons:
1) With the cancellation of most events towards the beginning of the pandemic in March, people turned to sharpening their hobbies or spent time learning something new. Speaking from a personal experience, the trend started with making dalgona milk tea and spread out to making a variety of different things. Point is, personal development through craft, which ETSY is made for, has been a growing trend in the COVID-19 pandemic era.
2) ETSY is also an online market, something that is on the trending horizon. Even retail stores such as Target and Walmart have been moving towards having an online format for the purpose of retailing and reaching out to more people. Especially because COVID-19 disapproves of people going physically to retail stores, online stores such as ETSY seem to be our future.
Although I lost the option to buy it when the instability caused by the election dropped stock prices, I think it is a good time to buy ETSY stocks. Amazon is valued at $3000+ and Shopify, a similar service, is valued at around $1000. While I have heavy doubt that ETSY will reach the level Amazon has or even the level which Shopify has, I have strong belief that 1) the continuation of quarantine will expand ETSY's boundaries and 2) ETSY will remain popular even after the end of this pandemic.
After much debate, I have decided to buy this stock, pricing in at around $129 per share.
Please message me if you have anything you want to comment!
Photo used from: https://commons.wikimedia.org/wiki/File:Etsy_logo.svg
Investing in the Coffee Giant: Starbucks
Last time on this blog, I sold all of my stocks from JYP Entertainment. My first investment ended up bringing 70% in revenue, which I am greatly grateful for. As of now because I don't see any good opportunities in the South Korean stock market, I have decided to start investing in the American stock market.
I initially hoped to invest in the hotel or airline industry because of their huge stock decline due to COVID-19 but changed my mind as I am still inexperienced in this field. As of now, the giant tech stocks seem to be overpriced as the summer stock rise has made them out of reach for a high school trader.
Hence, I decided on investing in the food industry. I originally planned on investing in McDonald's stocks as they had a nice valuation at approximately $190. However, while setting up eBest Mobile into the international platform where I can trade stocks from companies in America, China, and Hong Kong, I lost my chance and McDonald's stocks went up to 200-210 dollars.
As a result, I decided to settle on Starbucks. Although it has pretty much a monopoly on the coffee retailing industry, it seems to have a low valuation in the general food industry. Most stocks (at least for the bigger companies) in that industry are valued at the low $100s but Starbucks is currently in the mid $70s.
I have decided to invest in this stock as a conclusion. I bought it on the 7th of August at $75.
Please contact me if you have any comments!
Photo from: https://www.logoworks.com/blog/siren-starbucks-logo-design/