WATCH: Stock pick — Amazon
Nesan Nair from Sasfin Securities and independent analyst Chris Gilmour talk to Business Day TV
Nesan Nair from Sasfin Securities chose Amazon and independent analyst Chris Gilmour chose to not go for any picks just yet
Nair said: “I’m going to be boring and call Amazon again: their results were out this week and they were sold off heavily as because the results did disappoint. They are spending $4bn in their own business addressing coronavirus on safety procedures, and for them I think the cost of doing business has just gone up because of the coronavirus. Not a lot of businesses are going to be able to survive this, so I think in a year or two years time they're are going to be even stronger than where they are right now.”
Gilmour said: “I'm going to be even more boring I'm going to say that I'm going to still be sitting on my hands. I mean, you could go for stocks like AstraZeneca, for example, that's if you're confident that Oxford University is going to create a vaccine for this coronavirus in the next few months, but you know that's that is a big bet, so I'd be steering away from that. So, at this point in time as we said earlier I think what we're seeing now is a rally in a bear market and I think we've got more downside to come, so I think I'd just be holding fire at this point in time.”
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