Breaking News
Black Friday SALE: Up to 54% off InvestingPro! Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Millennial Minded Investing: Uber, Chipotle, & Amazon

By Zacks Investment ResearchStock MarketsJul 12, 2017 07:14AM ET
www.investing.com/analysis/millennial-minded-investing:-uber,-chipotle,---amazon-200200740
Millennial Minded Investing: Uber, Chipotle, & Amazon
By Zacks Investment Research   |  Jul 12, 2017 07:14AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

This week I joined Zacks stock strategist and host, Tracey Ryniec, on her Zacks Market Edge Podcast to discuss—from a Millennial’s perspective—a few companies that continually grab headlines.

Uber & Controversy

Uber’s whirlwind rise helped the company earn a nearly $70 billion valuation. However, the recent controversies at the top, especially surrounding founder and CEO Travis Kalanick, have caused some people to delete the app and move on from the ride-sharing service. The negative media attention and company turmoil reached such a boiling point that Kalanick recently stepped down.

Despite the negativity surrounding the ride-sharing giant, we discussed that for many millenials, Uber is still nearly ubiquitous. In fact, the company has transformed into a verb that is sometimes used to refer to other ride-sharing apps.

Among people that I know, I don’t recall anyone cutting ties with the service amid the controversy. And cabs, even in a big city like Chicago where I live, are hardly even considered as a means of transportation for many in my generation. Uber can be even more helpful and useful in smaller cities or college campuses where cabs were almost non-existent.

Millennials I know do use Lyft, but it seems the service is often used as a backup to Uber when surge pricing becomes far too high.

For some Millennials the company could become a long term replacement for a owning a car, especially in cities. Quick, rental car style options such as Zipcar seem to be far less popular.

Many Millennials are likely to jump on Uber stock if the ride-sharing company files for an IPO, based purely on their experience with the company’s service (also read: Will Uber Be the Hottest IPO of 2017?).

If Uber can sort out its internal issues, which could harm it in a long run, the company seems ready to transform the auto and cab industry and become a game changing company for years to come.

Is Chipotle Ready For A Comeback?

Ever since Chipotle’s (NYSE:CMG) food safety scandal, the fast-casual Mexican grill has struggled as the company failed to regain many consumers and investors.

However, in my experience, the chain has hardly lost a stride. At Indiana University’s campus in Bloomington, the line at Chipotle is often stretched to nearly outside. The Chipotle near the Loop campus of DePaul University in Chicago often experiences similar traffic around lunch and dinner hours.

The food is quality, filling, and most often healthy, and the price point is relatively competitive compared to comparable dining options.

Anecdotally and through personal experience, Chipotle seems to be thriving. Still, since Chipotle’s stock does not reflect my current confidence in the brand whatsoever, I would have a hard time investing at this moment.

While the company’s popular locations are still busy at peak hours, same-store sales have barely recovered since 2015. The stock has failed to rebound in the last few years and it is currently a Zacks Rank #4 (Sell), with an “F” for Value in our Style Scores system.

Amazon, Home Delivery, & Brick and Mortar

Amazon (NASDAQ:AMZN) has become one of the largest companies in the world, and Jeff Bezos looks ready to conquer any industry he chooses. But shopping malls and brick and mortar retail might be the first industry that the online powerhouse is ready to push to the brink of extinction.

Online shopping, specifically on Amazon as a Prime member, quickly became popular among Millennials. The ability to have almost anything delivered to your door within two days is hard to resist, especially as more and more young people flood back into cities around the country. With less young people owning cars in the city, it isn’t hard to see why delivery services have become so common.

Food delivery services such as Grubhub (NYSE:GRUB) or smaller outlets like Postmates are used with great regularity among young people throughout American cities, and Amazon’s buyout of Whole Foods (NASDAQ:WFM) might help drive the grocery delivery revolution that PeaPod helped start years ago.

The massive indoor and outdoor shopping mall has most likely seen their day come and go. But, even with the popularity of buying everything online, Amazon and the internet will likely never replace the idea of “going shopping.”

There will always be a portion of the population that wants to walk around and go shopping as something to do, which underscores the importance of offering an “experience” in the store. Millennials are more prone to go to a store if they feel that they are missing out on something cool by not going.

More Stock News: 8 Companies Verge on Apple-Like Run

Did you miss Apple (NASDAQ:AAPL)'s 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade, which could in turn save $200 billion in U.S. healthcare costs.

A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>



Amazon.com, Inc. (AMZN): Free Stock Analysis Report

GrubHub Inc. (GRUB): Free Stock Analysis Report

Chipotle Mexican Grill, Inc. (CMG): Free Stock Analysis Report

Whole Foods Market, Inc. (WFM): Free Stock Analysis Report

Original post

Zacks Investment Research
Millennial Minded Investing: Uber, Chipotle, & Amazon
 

Related Articles

Millennial Minded Investing: Uber, Chipotle, & Amazon

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email