High levels of volatility have caught institutional investors off guard in the first half of the trading year, forcing many to re-evaluate their trading strategy immediately. After many stocks experienced downturns and shutdowns due to highly speculative holdings, many are shifting away from high-flying growth company stocks and toward a much more balanced portfolio. Investors are increasingly focused on businesses with competitive and sustainable business strategies and long-term prospects.
Institutional Investors Stocks: Amazon and Suncor
Amazon and Suncor are two such companies that have recently received institutional interest. While Amazon stock (NASDAQ:AMZN) is down 38% from its 52-week high and Suncor stock (NYSE:SU) is down 24% for the year, both are becoming more popular among institutional investors. Suncor now has 62% institutional ownership, whereas Amazon has 59% institutional ownership.
Amazon Stock
Amazon stock (NASDAQ:AMZN) is down far more than the wider market, partly due to excessive valuations and the inherent volatility of the tech sector. Revenue increased 9.6% in the most recent quarter as global consumer spending weighed on the stock. However, consumer mood is on the increase again. Although savings have taken a blow, and consumers are increasingly holding back on purchases owing to inflation, basic consumer items may begin to see a little rebound as we go ahead.
Aside from the retail attitude, Amazon’s cloud business is growing rapidly. Because of the broad net that AWS has cast, it is gradually becoming important to the 200 billion-dollar cloud business. Amazon and Microsoft hold over 50% of the current market share, but significantly lower than in prior years, thanks mostly to new entrants offering highly specialized services. Because the cloud sector is predicted to increase by more than 30% by 2023, Amazon’s AWS revenue should rise at a comparable rate. AWS is on course to generate more than $70 billion in sales, and given that cloud profit margins have been continuously expanding, rising from 29% in 2021 to 35% in 2022, the stock is unlikely to remain cheap for long, particularly as cash flow increases.
Suncor Stock
Suncor stock (NYSE:SU) continues to post good profits as rising oil prices boost cash flow for the Montreal-based integrated oil major. Cash flow from operational operations more than quadrupled in the most recent quarter, and with oil prices rising again, institutional investors are paying careful attention to the company. After years of disappointing performance, the unexpected profit boost has considerably lowered the value, with the current price-to-earnings ratio coming in at 6x.
Given the increased oil scarcity, mostly due to OPEC’s production cuts, prices should rise back to over $100 per barrel. Because most oil corporations had hedges around $70-75 per barrel until recently, higher prices should result in stronger price realizations in the coming quarters. Suncor is well positioned to capitalize on market dynamics and is anticipated to realize large profits as the wider market stabilizes.
Featured Image- Megapixl @ Bigtunaonline
Author Okoro Chinedu 
