3 growth stocks I would buy in the blink of an eye on any cryptocurrency
For more than a century, the stock market has stood head and shoulders above all other investment vehicles. Although stocks do not generate a positive return every year, the market has generated the highest average annual return over the long term, compared to other assets, such as bonds and gold.
But over the past couple of years, stocks have lagged far behind cryptocurrencies. In just over 11 years we have watched Bitcoin (CRYPTO: BTC) earn more than 7,700,000,000%. There are also coins based on the memes Shiba inu (CRYPTO: SHIB), which has posted gains of over 5,000,000% since its inception less than 15 months ago.
Breathtaking gains like these are making investors flock to the cryptocurrency space like never before. These investors rely on continued euphoria and growing real-world adoption to generate life-changing returns.
Investing in cryptocurrency comes with a lot of risk
However, I am not convinced that the crypto craze has lasted. With few exceptions, the actual use case for digital currencies is virtually nonexistent. For example, Dogecoin (CRYPTO: DOGE) has been in the spotlight on social media over the past year, but only about 1,700 companies accept it as a payment method, according to the online business directory Cryptwerk. The Shiba Inu is used even less in the real world, with only 91 merchants accepting SHIB as a method of payment.
Another major problem with cryptocurrencies is that investors always overestimate the adoption and usefulness of new technologies. Whether it’s genomics, B2B, 3D printing, or other innovative advancements, bubbles are commonplace. While blockchain technology has the potential to become mainstream at some point in the future, we are far from moving away from the existing financial payment infrastructure.
Perhaps the most damning aspect of cryptocurrency is the lack of a barrier to entry. CoinMarketCap.com lists nearly 13,000 cryptocurrencies last weekend. Every month new projects are launched, all of which threaten to become more popular, useful or effective than existing cryptocurrencies. For example, several popular cryptocurrencies offer a cheaper and significantly faster way to make a payment than Bitcoin.
A trio of growth stocks to buy before any cryptocurrency
Instead of making my money work in cryptocurrencies, which could be the next in a long series of asset bubbles, I would buy the next trio of high growth stocks in the blink of an eye.
First up is a cloud-based advertising technology company PubMatic (NASDAQ: PUBM), which aims to benefit from a change in the way advertisers reach users.
Since the dawn of the Internet, advertising has become increasingly programmatic. In other words, humans are further and further removed from the equation, with machine-based algorithms handling the buying, selling, and optimization of ads.
PubMatic is a sales platform whose clients are publishers. It effectively sells display space from publishers to advertisers. However, he doesn’t just auction off that space to the highest bidder. The company’s cloud platform aims to optimize the user experience, which means showing them relevant ads. This satisfies advertisers and generally gives publishers better pricing power.
What makes PubMatic such an obvious investment is the continued shift to digital advertising. According to PubMatic, digital ad spend for the entire industry is expected to grow by around 10% per year through 2025. However, PubMatic has easily doubled the industry’s average growth rate. Indeed, the bulk of its revenue comes from programmatic ad spend for connected / over-the-top TV.
Given that PubMatic’s existing customers spent 50% more with the business in the quarter ended June than in the comparable quarter of 2020, I would say this is at the center of a sure-fire growth trend. .
Another high growth stock that I would buy in the blink of an eye long before any cryptocurrency is a marijuana company Trulieve Cannabis (OTC: TCNNF).
Trulieve is an American multi-state operator (MSO). While Canadian pot stocks were once the hot buy, it is US pot stocks that offer the best long-term prospects. Cannabis analysis company BDSA predicts a compound annual growth rate of 14% for the U.S. weed industry through 2026, ultimately leading to $ 47.6 billion in sales.
What will make people frown at Trulieve is her focus. Even though it has expanded to new states, Trulieve recently opened its 100th dispensary in Florida. By concentrating so many retail outlets in Florida, where medical marijuana is legal, Trulieve has been able to reduce its marketing costs. As a result, it has been profitable on a recurring basis for over three years. It has also swallowed up around half of the Sunshine State’s dried cannabis and oils market share.
Trulieve also plans to grow inorganically. Earlier this month, he completed the acquisition of all of the shares of MSO Harvest Health & Recreation. Harvest Health focused on five states, with its home state Arizona being the most lucrative. Inheriting Harvest’s 15 dispensaries in Grand Canyon State could allow it to control another billion dollar cannabis market.
There is simply no stock of pure marijuana that generates more green than Trulieve Cannabis.
A third and final growth title that I would add well before buying a cryptocurrency is the cloud-based customer relationship management (CRM) software provider. Salesforce.com (NYSE: CRM).
CRM software is used by businesses that have direct contact with consumers to improve existing customer relationships and drive sales. In addition to accessing real-time customer information, it can be used to manage online marketing campaigns, manage service issues, and run predictive analytics to determine which customers might purchase a new product or service. Sales of CRM software are expected to increase by a double-digit percentage at least in the middle of the decade, if not more.
What makes Salesforce so special is its absolute dominance of the CRM space. According to IDC data, Salesforce generated 19.5% of global CRM spend in 2020. In some contexts, that was more than 2-5 market share on a combined basis. Salesforce’s seat at the head of the table for this hot trend won’t be rivaled anytime soon.
Salesforce also has an insatiable appetite for acquisitions. CEO Marc Benioff is always looking to build his business ecosystem and expand his potential user base to small and medium businesses. This has been done in recent years with the takeovers of MuleSoft, Tableau and more recently of Slack Technologies.
Including organic and acquisitive growth, Salesforce can double its revenue roughly every four years. That’s incredibly strong growth for a confirmed mega-cap winner.
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.