Welcome back to the Middle School Investor weekly newsletter!
The stock market has continued to struggle over the past week as interest rates have been increasing rapidly. The stocks that are impacted by this the most are technology companies with high growth and no profit.
Examples of such companies are Rivian and Sentinel One. The share price of both these stocks have decreased a lot in the past few weeks. As they are newer companies with high growth, they do not have any profits and that is negatively impacting them at the moment. Last year, Rivian only sold 700 cars! Rivian really has a long way to go.
Below are the changes I made to my portfolio this week.
Sentinel One: Sold 16 at $48.30.
As mentioned above, the share price of Sentinel One is decreasing due to the current situation of interest rates. This week, the price went back to a similar price at which we bought it at. I took the opportunity to sell a few shares without making a loss. Interest rates will continue to increase for some more time. Until then, I expect the price of Sentinel One to continue declining. However, the stock will recover in the future.
Splunk: Sold 6 at $121.
I sold a few shares of Splunk for similar reasons as Sentinel One. In the last few months, the share price of Splunk has been going down but the price has recently started to recover. I expect the price to bottom soon. I also had a lot of shares so I trimmed my position in Splunk. I do not want too many shares of Splunk so that I can buy more when the price bottoms.
Philips: Bought 5 at $34.31.
Recently, Philips(PHG) has had 2 major problems. PHG is a company that makes medical devices. They had a manufacturing defect while making ventilators. The company got a lot of criticism and they are now under investigation. PHG has also had supply chain issues. These two problems have caused the share price to fall off a cliff. I bought PHG when the price was near the bottom of the cliff. The price has started to recover. Overall PHG is a good profitable stock with a good dividend.
Dutch Brothers: Bought 2 at $45.20.
Just like Roblox, Dutch Brothers is one of my favorite stocks to do well this year. I like Dutch Brothers because they have a good product that is very popular, especially among young people. In America, there are only 400 locations so there is a lot of room for growth. BROS is an older company but only recently they started growing and expanding their business. The stock has a good future and it is a long term stock. I use every opportunity to buy BROS at a good price.
Thank you for taking time to read my newsletter. See you next week!