While most UK investors stick to London-listed stocks, some big global names are too tempting to resist. The following are the three most popular international stocks forUK investors, according to new research from Interactive Investor. Butare investors in danger of buying the name, rather than the investment case?
The most traded international stock maysurprise some: $40bn tech innovatorTesla Motors(NASDAQ: TSLA.US). Founder Elon Musk, an entrepreneurial designer, engineer and inventor, wants nothing less than to save the world through the power of electric vehicles and solar technology. But is he aiming too high?
Investors were sceptical about the recentmerger between Tesla and another Muskproject, struggling solar energy firm SolarCity, but fell silent when Tesla unexpectedly posted what was only its second-ever quarterly profit in October. The world is now waiting to see if thenew Model 3 Sedan will driveit into the mass market. Investors remain wowed, with the share price upmore than 50% over the past year to $250, which leaves it trading at a whopping 137 times earnings. Thats a bit beyond my pocket (like its cars). Tesla thrills, but could also suffer spills.
Take a bite
The second most popular global stock is no surprise at all: $677bn behemothApple Inc (NASDAQ: AAPL.US). Yet it has just been overtaken by Google as the worlds most valuable brand,in the latest Brand Finance Global 500 report.Apples brand value has fallen27% to $107.1bn, due to rising smartphone competition from the likes of Samsung and Huawei, and falling customer goodwill. So has it lost its shine?
A fewyears ago people couldnt resistwaving their fancy iPhonesin my face, yet I still havent seen an Apple Watch in the flesh. The company has lost its flash of innovatory geniusand I suspect the Western world hashit peakgadget. Sensible people want their lives back.
That said, last weeks Q1 results showed Apple sellingmore iPhones than ever before, and setting all-time revenue records for iPhone, Services, Mac and Apple Watch. The App Store is doing record business as the company wisely shifts focus from products to services. The stock is up 37% a year to $129. The dividend is higher than 1.77%. Apple still looks worth a bite, especially at 15 times earnings.
In the zone
You need no introduction to $385bn online retailerAmazon.com(NASDAQ: AMZN.US). In fact, youre probably still paying off theChristmas shopping bill you ran up at Amazon. TheBrand Finance Global 500 has justnamed it one of the companies with the highest rising brand value, up53%.
Itcontinues to grow strongly while revolutionisingthe retail market in the US, UK and beyond, and continuing to takemarket share. Itsuffered a rare setback in the Q4 with revenues of$43.74bn falling short of the estimated $44.68bn. Even a small slip-up can hit investor confidencewhen the stock trades at 171 times earnings.
So how much further can Amazon go? The success of Prime and the deep pockets that will allow it to breaknew markets suggests theres more to come. Jeff Bezoss company has justified its sky-high valuation before, and almost certainly will do again.
Sadly, the big money has already been made from these stocks. As ever, investors who got in early are the ones who really cash in. However, there are other ways of making a fortune from investing.
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Harvey Jones has no position in any shares mentioned. The Motley Fool UK owns shares of and has recommended Amazon, Apple, and Tesla. The Motley Fool has the following options: long January 2018 $90 calls on Apple and short January 2018 $95 calls on Apple. We Fools don’t all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.