Do you have $ 3,000? These Supercharged Stocks Can Triple Your Money
History has shown time and time again that it doesn’t matter when you invest, but rather how long you stay invested that gives you the best chance of building wealth. So, even with a larger market near an all-time high, there are still plenty of opportunities for long-term investors to get rich.
Best of all, you don’t need to have Warren Buffett’s wallet to make money on the stock market. If you have, say, $ 3,000 on hand, which you won’t need to pay bills or cover emergencies, that’s more than enough money to buy the following supercharged stocks, all of which have the potential. to triple your money.
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Palo Alto Networks
While you may find industries growing faster this decade, you probably won’t find a more secure growth opportunity than cybersecurity. The pandemic has forced businesses to accelerate their push online and in the cloud. Coupled with continued hacker and bot attacks, the demand for cybersecurity solutions is greater than ever. This is why sticking $ 3,000 into Palo Alto Networks (NYSE: PANW) can triple your money.
Palo Alto is in the midst of a transition that has seen the company reduce its focus on physical firewall products in favor of cloud-based cybersecurity solutions that rely on artificial intelligence and machine learning. This allows its solutions to become more effective at recognizing and responding to potential threats over time. Cloud-based systems are often more agile than on-premises security solutions, and in many cases they are also cheaper.
For Palo Alto, moving to a subscription-based software as a service model means less inconsistent revenue recognition, as well as higher margins. In the quarter ended in April, 73% of revenue came from subscriptions, compared to 68% in the previous year’s quarter.
Additionally, Palo Alto also has a knack for making smart acquisitions. These agreements typically expand the company’s range of security solutions and / or make Palo Alto accessible to a wider range of corporate clients. Between its organic and inorganic opportunities, sustainable double-digit growth should be expected.
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Quickly
Another supercharged growth stock that can triple your money is the edge cloud services company. Quickly (NYSE: FSLY).
Interestingly, Fastly’s big catalyst is extremely similar to Palo Alto’s. Namely, we are seeing business and content consumption changing online. This means improving the online experience, which is where Fastly comes in to speed up content delivery to end users in a secure manner.
As you can imagine, the pandemic was the perfect opportunity for Fastly to showcase its solutions. With more businesses and people than ever working remotely and accessing the Internet, the demand for Fastly’s services has skyrocketed. But I think the most telling event of 2020 was that the company easily overcame ByteDance by pulling traffic from its network in Q3. ByteDance is the parent company of TikTok, and it was involved in a battle with the Trump administration in the United States at the time. Even though ByteDance was Fastly’s biggest customer, revenue still grew by over 40% in the third quarter. In other words, Fastly has shown the world that it’s essential for a wide range of fast-growing customers.
Another reason why Fastly has the potential to become a future juggernaut is the belief that its long-time clients have in its services. In the previous three quarters, the company’s dollar net expansion rate (DBNER) stood at 147% (Q3 2020), 143% (Q4 2020) and 139% (Q1 2021), respectively. What DBNER is saying is that Fastly’s existing customers in the quarter of last year spent 47%, 43% and 39% respectively the following year, respectively.
Despite increasing short-term losses as the company increases its workforce and invests in its platform, Fastly has all the tools to turn patient investors into a cargo of money.
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Don’t let big market caps stop you from investing in big companies. Although the days of the social media giant Facebook (NASDAQ: FB) tripling in a year or two might be gone, this is a business that can still easily triple investor money in the long run.
The easiest way to understand Facebook’s dominance is to dig into its operating data. At the end of March, 2.85 billion people were visiting its eponymous site each month, and an additional 600 million unique visitors were heading to Instagram and / or WhatsApp, which Facebook also owns. Together, we’re talking about 3.45 billion people using a Facebook social platform at least once a month. With such an audience of users and the potential to target those users, it’s no wonder advertisers pay whatever it takes to get their message across on Facebook.
But it’s not just the sheer number of users that’s so compelling. Despite the pace of more than $ 100 billion in ad revenue in 2021, only Facebook and Instagram have been significantly monetized. This means that when WhatsApp and Facebook Messenger are finally monetized, Facebook could experience another sustainable growth and increase in profits.
And don’t forget about Facebook’s auxiliary segment potential. The company’s Oculus virtual reality (VR) devices could make the company a leader in VR and were likely the driving force behind Facebook’s “Other” revenue, which climbed 146% in the first quarter to $ 732 million. Facebook also has the potential to become a financial services or streaming player.
For a company with a market capitalization of nearly $ 1,000 billion, Facebook is historically cheap at just 23 times Wall Street’s profit forecast for the coming year.
This article represents the opinion of the author, who may disagree with the “official” recommendation position of a premium Motley Fool consulting service. We are heterogeneous! Challenging an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.