Kim And Kanye's 2018 Stock Playbook

For investors who are tired of following stock recommendations from Morgan Stanley and Goldman Sachs analysts, rapper Kanye West just gave them a golden opportunity to follow the Yeezy portfolio in 2018.

Kanye reportedly bought wife Kim Kardashian shares of stock for Christmas. While the stocks that have been reported aren’t the most diverse group, they include some heavy hitters of the tech world.

West reportedly paid big bucks for shares of Netflix, Inc. NFLX, Amazon.com, Inc. AMZN, Apple Inc. AAPL, adidas AG (ADR) ADDYY and Walt Disney Co DIS, which he then gifted to Kardashian for Christmas. Yahoo Finance reports Kanye gifted 920 shares of Disney stock worth about $100,000 and 995 shares of Adidas stock worth about $200,000, suggesting the entire portfolio was likely valued at more than $500,000. 

Unfortunately for Kardashian, these five stocks are going to have to do some heavy lifting in 2018 to replicate their 2017 returns. West’s investing philosophy appears to be buy high and sell higher, with the S&P 500 up 19.9 percent year-to-date. Adidas stock is up 28 percent, while Amazon, Netflix and Apple have more than doubled the return of the overall market with gains between 47 and 58 percent. Disney has been the lone laggard of the Kanye portfolio, gaining just 3.2 percent on the year.

Looking ahead, analysts see plenty of upside to the Kanyefolio. Here’s a look at how much implied upside each stock has in the next 12 months based on median analyst estimates:

• Adidas: price target $117.45, upside of 16.8 percent.
• Netflix: price target $225, upside of 17.2 percent.
• Amazon: price target $1,270, upside of 7.1 percent.
• Apple: price target $193, upside of 12.7 percent.
• Disney: price target $113.50, upside of 5.6 percent.

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Photo by Jason Persse/Flickr.