
These growth stocks could be the next Amazon, the next Apple, are they worth investing in long term? Or are they merely stocks to trade?
1) BLOCK (FORMERLY SQUARE) (SQ) $SQ
February 6, 2022 $108.87
INTRODUCTION:
Square (SQ) was founded in 2009 by entrepreneurs Jack Dorsey and Jim Mckelvey to realize their aim of inventing technology that could combine merchant services and mobile payments into a single, simple-to-use solution. Millions of small businesses use Square to accept credit card payments, track sales and inventory, and secure financing less than a decade later.
PRODUCTS:
Square’s product line includes Cash App, which allows users to send and receive money for free through a mobile application. It’s a credit card processor that accepts a variety of cards (Visa, Mastercard, American Express, Discover, JCB, UnionPay). Additionally, it takes Apple Pay, Android Pay, and eWallet payments .
SUCCESS JOURNEY:
Investors have penalized Block’s valuation, slashing its share price in half from its 2021 highs, as they have many other growth stocks from late 2021 forward. In 2022, the stock of Square is down roughly 31% due of the market’s dropping Bitcoin prices and dismal quarterly results. The company’s underlying business fundamentals, however, remain robust.
THE ROAD AHEAD:
Some analysts have predicted that the digital payment processor could evolve into a much different company with multiple growth engines, similar to Amazon.com (AMZN) and Alphabet’s (GOOGL) Google.
Square, on the other hand, remains a best-of-breed fintech company in the long run. They intend to develop a bitcoin mining technology. Dorsey announced the launch of a new business line to help developers build Bitcoin-focused financial services solutions .It has the potential to become the industry’s dominant player.
2) THE TRADE DESK(TTD) $TTD
February 6, 2022 $73.04
HISTORY:
The Trade Desk was founded in October 1, 2009 by Jeff Green.
INTRODUCTION:
The Trade Desk is an advertising platform of about 1500 employees .It enables users to purchase various types of online advertisements across the internet. it is called a demand-side advertising platform is .
It’s similar to a virtual marketplace for online advertising that operates in real time. The most common type of advertisement is a banner, but other types of advertisements, such as text ads can be found in the marketplace.
Advertisers use The Trade Desk marketplace to bid on advertising inventory as it appears on a page in real time. The Trade Desk technology analyses Internet user data to predict how likely a user is to click on an advertisement and, more importantly, how likely they are to buy a product.
PRODUCTS:
The Trade Desk (TTD) is a global technology company that sells a software platform that allows digital ad buyers to buy data-driven digital advertising campaigns across a variety of ad formats and devices.
SUCCESS JOURNEY:
The Trade Desk (TTD), a global leader in advertising technology, was named to the FORTUNE Future 50 list. This is the first time the company has been named to the annual list, which honors innovative companies with the best long-term growth. It looks set to rise in future as it has risen 3000% in last five years.
ROAD AHEAD:
The Trade Desk (TTD) has great potential to grow in future .Because advertising budgets are transforming from traditional to programmatic buys .THE TRADE DESK(TTD) in coming years could mean explosive growth
DRAWBACKS:
They have lack of transparency in terms of margins and fees. The reporting they provide is a bit limited.
3) SHOPIFY(SHOP) $SHOP
February 6, 2022 $876
History:
Shopify was founded by Tobias Lütke and Scott Lake in 2006.
INTRODUCTION:
Shopify is a commerce platform that allows anyone to create an online store and sell their products. With Shopify POS, merchants can also sell their products in-person. Shopify is now the leading commerce platform for businesses of all sizes.
Shopify has you covered whether you sell online, on social media, in-store, or from the trunk of your car. Our first Shopify store was our own, and it has been our mission to make it the best it can be.
SUCCESS JOURNEY:
Shopify (SHOP) has a market cap of $180 billion and is down about 18 percent from its all-time high. It must return 455 percent over the next seven years to become a $1 trillion company. Over the last three years, however, it has more than doubled that return, increasing by 1,080 percent.
THE ROAD AHEAD:
it has four major Growth Engines for coming years
- The shop app
- Fulfilment Network Business
- Channel Partnerships
- International Expansion
Within the next five years, Shopify has the potential to become Amazon or an online marketplace. Amazon, on the other hand, cannot compete with Shopify. Many Shopify stores fail to sell their products due to a lack of proper marketing.
Shopify is currently trading at more than 60 times last year’s sales and approximately 40 times this year’s sales. If its price-to-sales ratio stabilizes at around 30 times sales, it could be worth $1.5 trillion by 2030.
DRAWBACKS:
The only reason is a lack of marketing experience or knowledge, and a proper niche is also to blame. So, in order to make a good profit on Shopify, a good niche product and a good marketing team or person are required.
4) ROKU (ROKU) $ROKU
February 6, 2022 $158.73
HISTORY:
Anthony Wood, the founder of Replay TV, founded Roku as a limited liability company (LLC) in October 2002. Roku Is a Japanese word that means “six” and refers to the fact that Roku is Wood’s sixth company.
INTRODUCTION:
Roku is a company that creates digital media receivers known as Roku players. They can connect to the Internet and stream content to your television. Consider it a less expensive version of Apple TV that is very similar to the Google Chromecast. Roku’s OS and interface are now available on a variety of Smart televisions. Roku is a streaming service.
You can use it to watch Netflix, YouTube, Hulu, Disney+, and other services. Because ‘Roku’ is only the name of the company and platform, the actual device varies. They have streaming sticks, which are small rectangular devices that plug into your television’s HDMI port to turn any television into a smart television. They also have larger, non-stick shaped versions that do the same thing, but at a higher quality and with more features.
CURRENT POSITION OF STOCK :
Ruko is increasing users and engagement growth .current share price is good deal for long- term investors.it is becoming most powerful company in streaming.it is dominating domestic streaming. It is currently available in over 20 countries .
THE ROAD AHEAD:
Roku grew from a start-up into $55 billion company in 19 years so it is expected to grow more in coming years it could evoke from a streaming device marker into a diversified software then it will outperform the boarder market over next years.
DRAWBACKS:
It has lack of storage and lack of high internet connectivity which needs improvement.
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