2 high growth stocks that can beat Shiba Inu in the next 5 years
gRowth’s shares have followed an inexorable upward trajectory since the end of the Great Recession in 2009. Federal Reserve policies to keep lending rates artificially low while engaging in quantitative easing have created a ocean of cheap and abundant capital, enabling fast-growing companies. growth stocks to hire, innovate and acquire their way to new heights and greater profits.
Yet even those who are pale compared to those made by my cryptocurrency darling Shiba inu (CRYPTO: SHIB), the dog-headed token that came back over 13 million percent in a little over a year. An investment of $ 10 in August 2020 means you would be a millionaire today.
Image source: Getty Images.
However, with little use outside of trading hands between traders, there is a good chance that Shiba Inu will collapse anytime, compared to growth stocks, which have economic winds behind them to continue to rise. outperform the market.
Even with the S&P 500 Regularly setting new all-time highs, the following growth stock duo has the ability to make you richer in November and, most importantly, well beyond.
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Bark up to the right tree
Keith Noonan: If you’re drawn to the cuteness of the Shiba Inu token mascot, I can’t blame you. Heck, these dogs are pretty cute. However, there is a good chance that long-term investors will be better served by putting their money aside. soft (NYSE: CHWY), a fast-paced, pet-focused business with a long track of expansion.
Chewy operates an online marketplace for products for pets, including food, toys and a wide range of other supplies. The company also recently launched a separate platform aimed at veterinarians.
More and more, dogs, cats and other animals are considered part of the family, and people are spending more than ever on their pets. Chewy’s sales jumped nearly 27% year-on-year in the last quarter to $ 2.16 billion, and the company has turned to profitability in the first half of the current fiscal year. The company closed the period with 20.1 million active customers, up 21% from the previous year.
Best of all, it’s clear that buyers are spending more and more through Chewy’s platform. By the end of the second quarter, existing customers had increased their spending by 13.5% over the past 12 months.
The company has a large and rapidly expanding market to tap into, and it has quickly gained market share in its industry. The American Pet Products Association estimates that Americans will spend $ 67.5 billion on pet foods, treats, supplies, over-the-counter medications, and other relevant categories in 2021, and Chewy’s median target is 8.95. billion dollars in sales this year – – good for a market share of around 13%. That’s a dramatic increase from the 7.4% share of the $ 47.3 billion in category revenue she claimed in 2018.
With a large and growing user base and customers increasing their purchases through the platform, Chewy has a powerful growth engine that could push its share price much higher.
Image source: Getty Images.
The perfect stock for a getaway
Rich Duprey (Airbnb): Investors might have made a lot more money on the Shiba coin over the past few months than if they had invested in Airbnb (NASDAQ: ABNB), but the short-term vacation rental company is a much better high-growth stock that will undoubtedly outperform crypto over the next five years.
While regaining the seabed of the pandemic storm, Airbnb has a huge trail of opportunity ahead of it, not least because this niche of the travel and tourism industry is in its infancy.
Airbnb’s light-asset business model means it doesn’t have to pay construction or maintenance expenses – a competitive advantage over hotels, motels, and resorts – but should give it better profit margins. . Airbnb has only been listed on the stock exchange since last December, and it is still generating losses – a situation the pandemic has not helped – but its financial situation is improving steadily.
There are over 130 million households in the United States and approximately 1 billion worldwide. Airbnb now has more than 4 million owners offering their properties for rent on the platform. And the gross value of the reservation, or the fees it charges for stay, cleaning and the like, reached $ 13.4 billion in the second quarter, up 320% from a year ago. , but also by 37% more than in the same period in 2019.
Wall Street predicts that revenues will grow from $ 3.4 billion last year to $ 13.85 billion in 2025, a compound annual growth rate of 32%, while adjusted earnings before interest, taxes, depreciation and Depreciation will drop from a loss of $ 250 million in 2020 to $ 1.5 billion in profits next year.
Yet despite its losses, Airbnb is generating positive free cash flow – that is, the money left over from its operations after paying all the bills. It was over $ 1.4 billion on a rolling 12-month basis after the second quarter, and with the third quarter including the peak summer vacation season, there’s a good chance it could grow significantly.
With a total addressable market of $ 3.4 trillion, of which Airbnb only has a small slice, the opportunity to tour Shiba Inu over the next five years and beyond is excellent.
10 actions we prefer over Airbnb
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Keith Noonan owns shares of Airbnb. Rich Duprey has no position in the stocks mentioned. The Motley Fool owns shares and recommends Airbnb and Chewy. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.