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Child tax credit advance payments are currently being sent out, and parents who qualify for them might be wondering what the best ways to use the money are. If your financial bases are covered and you are in a good position to watch long-term investments unfold, there are opportunities to turn your money into a much larger sum.
With that in mind, a panel of Motley Fool contributors identified three promising growth stocks that could triple, or more, by the end of 2025. Read on to see why they think these stocks have what it takes. to serve incredible victories.
Image source: Getty Images.
Take advantage of the ongoing advertising revolution
Keith Noonan (PubMatic): Digital advertising plays an important role in fueling many of the internet’s most used applications and most successful businesses. Whether it’s data collected to better target users with ads that match their tastes, or the actual placement and distribution of material, ads keep the World Wide Web going.
PubMatic (NASDAQ: PUBM) provides a platform that allows ad buyers to easily target their campaigns based on real-time data. The company went public last December and has seen volatile swings in subsequent trading, but the company is showing encouraging momentum and its stock could bring big gains to patient investors.
The advertising technology specialist’s revenue increased 54% year-on-year in the first quarter to $ 43.6 million, and net profit rose from $ 0.9 million to $ 4.9 million. dollars. It also posted a net dollar retention rate of 130%, which means customers using its platform increased their spend by 30% compared to the prior year period.
PubMatic has a market cap of around $ 1.5 billion and is valued at around 7.7 times expected sales this year. The company also posted profits in its first two quarters as a publicly traded company, and the share price is around 61 times expected profits this year. With PubMatic showing a valuation that still sits squarely in small cap territory and operating in an industry that could continue to experience strong growth, risk-tolerant investors who take a buy and hold approach could benefit from strong returns. .
If PubMatic can continue to attract new customers to its platform and drive them to increase their spend by demonstrating the value of its services, the title has a good chance of generating explosive growth.
Don’t Make This Common Mistake With Your $ 3,600
Jamal Carnette (Coupang): One of the most common investing mistakes is country of origin bias, the tendency to invest only in domestic stocks. Although America is the world’s largest economy, it accounts for less than a quarter of global GDP. Simply put, many U.S. investors overlook global opportunities, including e-commerce businesses. Coupang (NYSE: CPNG).
Coupang qualified from South Korea Amazon, in part because founder Bom Kim shares Jeff Bezos’ relentless focus on the consumer. CNBC coined a different nickname for the company – “Amazon Killer†– when Coupang overtook Amazon to become South Korea’s No.1 e-commerce company.
Beating Amazon is no small feat, but Coupang did it by creating a better logistics and fulfillment network. Forget Amazon Prime’s two-day shipping, Coupang’s Rocket Delivery service promises one day or less for 99% of its orders.
South Korea is perfectly situated for long-term e-commerce growth: the country’s dense population is conducive to rapid delivery, with half of South Koreans living in the Greater Seoul area. Coupang has invested aggressively in logistics, and now more than 70% of all South Koreans live within 11 kilometers of a distribution center.
In addition, the country has higher smartphone penetration rates than the United States and has a well-educated and tech-savvy population with significant disposable income. If you’re looking for some long-term growth action for yourself (or your kids) with the recent tax credit, look no further than Coupang.
This under-the-radar streaming startup is a compelling buy right now
Jason hall (CuriosityStream): It would be easy to assume that NetflixThe plan to enter the video game market is an important indicator that the best days of video streaming growth are in the past. And to some extent, that’s probably a fair guess. But I think it’s also a mistake to draw a line between the pivot of Netflix and the game to mean that there is no opportunity for investors looking for high growth that should generate wonderful returns. .
This is especially true if it leads investors to ignore a small start-up like CuriosityStream (NASDAQ: CURI). Founded by Discovery Channel founder John Hendricks, CuriosityStream has a massive library of over 3,000 fact-based programs on nature, science, history, society and more, many in Ultra HD 4K.
There is still more to love; unlike Netflix and other streaming peers, CuriosityStream takes a more hybrid approach. It offers direct subscriptions to consumers, but is also in partnership with more than a dozen other streaming providers, including Hulu and Amazon (via its Prime Video) and bundled access to pay TV subscriptions in over 80 country. In other words, CuriosityStream makes sure it’s available wherever its customers are.
And although this is a niche, it is a very compelling niche that offers very rapid growth. The company increased its subscriber count by 50% in 2020 and has more than doubled revenue in each of the past two years. And following a few recent downgrades on Wall Street, investors can buy stocks around 50% below the all-time high.
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.
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