Golden Gate Reports – 2 Car Stocks That Can Help You Survive The Global Chip Shortage

London, UK, 3rd August 2021, ZEXPRWIRE – The stock market is a more than $70 trillion dollar global business, composed of the shares (or stocks) of publicly traded companies. People have mixed views about the area but Golden Gate Analyst believes that the downsides can be avoided if one trader\s properly. The first modern stock exchange was the Amsterdam Stock Exchange in 1602. Today there are many exchanges throughout the world, including New York Stock Exchange, NASDAQ, London Stock Exchange and Japan’s Nikkei 225. The New York Stock Exchange alone has a market capitalization of $18 trillion (almost twice as large as the US economy) and everyday stocks are bought and sold for an average value of about $300 billion.

When you buy stocks in a company, you become a part-owner of that corporation. In exchange for your money, the company gives you one or more pieces of evidence of ownership (a deed), which are represented by paper certificates and/or electronic records. Stocks are a great way to invest your money because they provide you with capital gains, dividends and income. Capital gains occur when the value of stocks goes up while dividends are payments made by companies to their shareholders (the people who own stocks) from profits made during the year.

Risks Associated With Stock Trading Include:

• Stock prices fluctuate daily.
• The market may crash and you could lose a portion or all of your money.
• You have no guarantee that the company will be able to produce a profit in the future, meaning you won’t recoup any lost capital.
• If the company falls into bankruptcy, then your shares are worthless.
• You might have to pay capital gains tax on your profit if it’s over a certain amount.

One of the most famous stock market crashes occurred in 1929 and is known as Black Tuesday. On October 29th of that year, there were more than 16 million shares traded in one day on the New York Stock Exchange; the average daily volume was 7 million shares. The market fell 23% in one day and over the next few weeks, more than $30 billion dollars of capital evaporated. Many investors lost their life savings overnight. Stocks continued falling throughout the early 1930s, losing about 90% of their value through 1931. Since that time there have been several crashes, but nothing as devastating as Black Tuesday.

Car Stocks

In the eyes of our expert analyst, the concerns of people regarding the future of automobile sales are pretty valid because one cannot ignore the danger lingering on the heads of investors which is due to a worldwide shortage of chips. Although this situation can land many investors in trouble, we have picked a few stocks for the ones who are interested in the automobile industry.  These are a few companies that can do well despite the crucial circumstances because they work in a slightly different manner. It should be kept in mind that the automobile industry is not only about brand new cars. The used ones make up a huge share of the market and they cannot be ignored. 

Carvana

The first car company that we will be talking about is one that deals in the online selling of cars. Carvana is a used car retailer which operates its business on a unique online platform. The company focuses more on the service it delivers and not so much on the price of the cars that it sells because the main source of revenue for them are services such as installation of free GPS trackers in each car which helps customers to locate their vehicle if taken away from them, unlimited lifetime warranty and free lifetime wash and cleaning for the car etc.  These services and many more have helped Carvana to create a reliable brand image for itself and that has led to an astonishing increase in revenue growth in a short time. Carvana happens to be the 8th largest vehicle trader throughout the US in terms of revenue and is on its way to massively expand the business. Because they sell used cars, this company is safe from the threats posed by the chip shortage. 

KAR Auction Services, Inc.

KAR is a publicly-traded company operating in the auto auction industry which was founded in the year 2006. The company is particularly famous among people because they allow you to inspect, compare and then buy cars from the comfort of their home. In the period of 12 months, the stock has gone up by more than 12 %. The company has plans to expand its business in the Asia Pacific and Canada which will help in future revenue. The company has a strong presence in the US and that makes it stand apart from its competitors. The quarterly reports of the current year saw an increase of revenue by double-figure which is very impressive. The used car dealing company made a revenue worth 2188 million US dollars, After heavy financial losses that most people had to go through after the pandemic, many people are investing in used cars which is helping the company stabilize its position.  All this and much more will make it a good investment choice.

Disclaimer: Our content is intended to be used for informational purposes only.

 It is very important to do your own research before making any investment based on your own personal circumstances.

You should take independent financial advice from a professional in connection with, or independently research and verify, any information that you find on this article and wish to rely upon, whether for the purpose of making an investment decision or otherwise.