Under the SMSF hood: Top Five Wall St Stocks Held in FY22
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With the launch of Stake’s self-managed super fund product, Stake Super, Australians are taking back control of their super and investing it in assets they previously haven’t had access to. How? Through Stake Super, Australians opting for more control of their super can invest in 8,000+ U.S. and ASX stocks and ETFs, ranging from classic names like Tesla to BHP, as well as cryptocurrencies and more. Here are the top 5 traded companies SMSFs on Stake are investing in on Wall St.
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Stake Rank: |
Stake Name: | Stake Ticker: | Price: | Market Cap: |
| 1 | Tesla | NASDAQ: TSLA | US$736.59* |
US$763b* |
Consistently in the top five stocks purchased on Stake, it is no surprise that Tesla also has the number one spot for Stake Super customers. The company consists of two divisions, automotive and energy generation and storage. The automotive segment includes the design, development, manufacturing, sale, and lease of electric vehicles and sales of automotive regulatory credits. The energy generation and storage division designs, manufactures, instals, sells and leases solar energy generation and lithium-ion energy storage products.
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Stake Rank: |
Stake Name: | Stake Ticker: | Price: | Market Cap: |
| 2 | Apple | NASDAQ: AAPL | US$151.00* |
US$2.4t* |
Like Tesla, Apple is constantly fighting for the number one or two most purchased stocks on the Stake. Apple has evolved quite radically over the years. While the company is no longer on the cutting edge like it used to be, it still is one of the world’s largest designers, manufacturers and sellers of smartphones, personal computers, tablets, and wearables and accessories, to name a few.
Apple’s main change over the years is its increasing reliance on service revenue; by 2Q22, it accounted for 20.4% of its US$97b in quarterly revenue. The other significant change was its use of cash for investments in marketable securities (stocks, bonds, etc.). By 2Q22, total marketable securities were worth US$165b, over 10% of its current market capitalisation. Where Apple will be ten years from now is anybody’s guess, but there is no doubt that it will still be here.
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Stake Name: | Stake Ticker: | Price: | Market Cap: |
| 3 | Amazon | NASDAQ: AMZN | US$118.21* |
US$1.2t* |
Despite not having much presence in Australia, SMSFs on Stake have a presence in Amazon. While most know the company’s retail website, many don’t know that most of Amazon’s profit (sometimes all of it) comes from Amazon Web Services (AWS). In 1Q22, AWS’s profit grew 57% year-on-year to US$6.5b, compared to the company’s total operating income of only US$3.8b. In other words, without AWS, Amazon would have lost money in 1Q22.
AWS remains the global leader in cloud services, but its main competitors, Microsoft’s Azure and Alphabet’s Google Cloud Platform, are constantly nipping at its heels. Yes, the retail segment is going strong, but AWS is the true story of Amazon, and it has been since approximately 2006.
| Stake Rank: | Stake Name: | Stake Ticker: | Price: | Market Cap: |
| 4 | NVIDIA Corp | NASDAQ: NVDA | US$169.92* |
US$425b* |
The NVIDIA Corporation focuses on the personal and gaming computer market through two main divisions: graphics and compute and networking. The graphics division provides GPUs for gaming PCs, streaming and related infrastructure and other gaming-related products.
The compute and networking division focuses on data centre platforms and systems that enable AI, high-performance and accelerated computing, autonomous vehicles, etc.
The cryptocurrency boom has driven the demand for semiconductors to considerable heights, increasing revenue 61% year-on-year to US$26.9b in FY22 and pushing gross margins to 64.9%. While the crypto market is crashing, the semiconductor industry is notoriously cyclical, and NVIDIA has always come out of these troughs strong. All-in-all, it’s understandable why Stake Super customers are taking a long-term view of NVIDIA.
| Stake Rank: | Stake Name: | Stake Ticker: | Price: | Market Cap: |
| 5 | Microsoft | NASDAQ: MSFT | US$259.53* |
US$1.9t* |
Much like Amazon, Microsoft’s main story is its cloud services division, Azure. Unlike Amazon, Azure is far from the industry leader, with only a 22% market share, compared to AWS’ 33% as of 1Q22. Still, don’t count Microsoft out. In 1Q22, the company gained a 2% market share, finally passing the total market share of the top ten companies outside of Amazon, Microsoft and Alphabet.
The other main difference compared to Amazon is Microsoft is far more diversified. The company is also involved in productivity and business products, PCs, software tools, video games and LinkedIn. Combined, Microsoft generated US$49b in revenue and US$17b in profit in 1Q22.
This article focuses on specific companies, however it is not a recommendation to invest and should not be taken as financial advice.
*Prices taken at 1:56 pm AEST 20/07/2022
This article was developed in collaboration with Stake Super, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
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