NEW YORK (MainStreet) Started in 2005 by Shop.org, Cyber Monday has been growing in size and popularity ever since. This "holiday" is essentially a Black Friday, yet online, forcing the prices even lower due to the lack of overhead and expenses for the online retailer. Cyber Monday is also very convenient to the consumer, which also allows it to drive a significant market movement in sales.
This buying madness is almost on our door step, so the market is thought to become a bit volatile within the upcoming days. Diversifying in a couple large capital companies before the holiday, may be a good play for your portfolio.
Throughout the upcoming weeks, as usual, the markets will be going crazy. Consumers are trying to get the best product while the producers are trying to sell the most product at the highest price. Thanksgiving weekend is a huge consumer driven weekend where the average spending amount is around $172.42. Yet Cyber Monday, which is a one day affair compared to the longer Thanksgiving weekend, has an average spending amount of $194.46, which was 13% higher than the previous year.
When reading charts from past Cyber Mondays, you can see a steady increase in sales. In 2012, Cyber Monday online retailers had sales of $1.4 billion, which was a 17% increase from the $1.251 billion of their prior year. Analysts are expecting the largest Cyber Monday ever this season, hitting $1.7 billion, an immense increase from the mere $1.4 billion in 2012. Although it is speculation, there is much evidence pointing toward a very successful holiday.
There are many different types of consumers purchasing online during Cyber Monday. The top categories of purchase include apparel at 31%, books/DVD`s/video games at 28% and electronics at 25% stake in the market. The Apple iPad gains the largest attention of the day, gathering traffic of 7%.
Some 2% of all conversations via webspace are said to be about Cyber Monday and its amazing deals. As the online market evolves, new consumers of Cyber Monday come from social media and advertisement on social media sites. Tangible advertisements aren't as suitable as online advertisements because of the links the online ads supply, allowing you to enter the site immediately.
One of the largest aspects that are growing the overall scheme of Cyber Monday include the mobile device sales. These sales reached 13%, which was a 96% increase from the year before. The more access the consumer has to the site, the more views a given seller gets--quickly tranlsating into sales.
Due to the fact that we only have a short window until Cyber Monday, we want to purchase volatile, yet safe stocks, that we think are going to move and make us some money. Let's look on a very short term opposition for right now, even on a couple day holding period. Large capital stocks like Amazon.com Inc.(AMZN), eBay Inc. (EBAY), and other retail stores online websites like Target Corporation (TGT) and Wal- Mart Stores, Inc. (WMT) have a large potential to make a killing within the next couple of days because of the large amount of traffic that enters their site. Look for companies of this nature to make an investment in, and don't be afraid to pull out when a little profit is made.
Remember: "Pigs get fat--hogs get slaughtered!"
When investing in a stock on a short term basis, like the technique that we are currently preforming, you need to do a couple of things. Make sure you do research in the stock and understand how they make money, deciding if you are dealing with a stable stock or not. As an investor, you need to understand that if the stock goes down because of bad sales during the holiday season, you can be comfortable holding the security. Also make sure to look at their customer base and product lines. If the company sells a certain product that you think doesn't pertain to Cyber Monday or Black Friday, I would hold off on purchasing for now, while there are bigger fish to fry.
--Written by Max Levin for MainStreet