It shouldn’t be a wonder that when a company is the best in its field, its stock prices tend to do well for a long time.
Due to their respective market caps of over a trillion dollars and current rankings as the first and fourth largest corporations in America, Apple and Amazon are two of the most talked-about brands in the business world. While it’s likely that both of those stocks will continue to do well over the long term, investors seeking a bit more return on their money could wish to add smaller, faster-growing companies to their investing portfolios.
Here are 10 stocks that may end up being “the next Apple or Amazon” in terms of dominating their sector, giving investors strong long-term returns, and possibly on the verge of joining the trillion-dollar club. Before making a purchase, make sure to speak with your financial advisor because buying individual stocks has a high degree of risk and some of these names can be viewed as speculative.
Block (Formerly Square) (SQ)
Price as of July 6th, 2023: $64.76
Since becoming public, payment processor Block, formerly known as Square until a name change in late 2021, has enjoyed long-term success. But beginning in late 2021 and continuing to the present, investors have penalized the valuation of Block, causing the share price to fall by about 80% from all-time highs.
However, the company’s underlying business fundamentals continue to be solid, offering investors what may be an alluring entry point.
The company has been expanding into blockchain applications and the fintech “buy now, pay later” space, as implied by the change in the company name. The business might become the dominant force in the sector if it can get everything in order.
Shopify (SHOP)
Price as of July 6th, 2023: $61.60
With its shares currently trading at a 60% discount to their highs, Shopify may be added to the list of high-growth firms that have returned to Earth during the past two years.
The climate facing the e-commerce stock over the past few quarters has been far more difficult than it was during the pandemic’s peak. Due to these factors, growth has slowed, and Shopify has forced to make cost-cutting decisions.
It fired nearly a quarter of its global workers earlier this month. In a significant shift in strategy that takes the company closer to its original asset-light business model, it also sold off its logistics division. The corporation might be prepared for a return to high growth if these measures are successful.
Meta Platforms, Inc (META)
Price as of July 6th, 2023: $291.85
The company that used to be called Facebook has been through a lot in the last few years.
Mark Zuckerberg went all in on the “metaverse,” changing the name and spending tens of billions of dollars on it. As a result, investors dumped the stock in droves, and the price fell from almost $380 per share to a low near $88.
Since then, the company has taken a step back. Zuckerberg has said that the company will focus more on its advertising business, which is where it actually makes money.
It’s hard to know if Meta’s plans for virtual reality will come true, but the stock has already climbed back up to the high $200s, and there’s a reason to think it’s on a path back to being worth a trillion dollars.
Sea Limited (SE)
Price as of July 7th, 2023: $55.26
People often call Sea Limited the “Amazon of Southeast Asia,” which is reason enough to watch it. In that part of the world, the middle class is growing quickly, or at least it was before the coronavirus outbreak.
Sea Limited shares have gone down a lot, and they are now more than 80% below their all-time high. This is because most market players have stopped buying Chinese stocks, they are overvalued, and they don’t make money. But the company’s continued fast growth and plans to offer e-commerce in Latin America and Europe could be huge possibilities for the business.
The company makes money not only from its famous e-commerce site Shopee, but also from its mobile game publisher Garena and its payment processing platform Sea Money.
Nvidia (NVDA)
Price as of July 6th, 2023: $419.53
For many years, Nvidia has been the global leader in technology, and its expansion appears inevitable. The chip manufacturer was in the right place at the right time with the right product, and this was reflected in the stock price.
Nvidia’s stock exploded to a new all-time high, briefly breaking the trillion dollar mark, after suffering significant losses to its multiple towards the end of 2021 and the beginning of 2022.
Nvidia manufactures graphics processing units (GPUs), which are crucial to the video game industry and are used to mine cryptocurrency among other things. The business also manufactures chip sets that drive everything from robotics to autonomous vehicles. Since all of these AI-related industries are experiencing rapid growth, Nvidia appears certain to keep up its rapid pace.
Airbnb (ABNB)
Price as of July 6th, 2023: $128.23
With a share of the overall rental vacation market of roughly 20%, Airbnb is already a titan in a highly fragmented business. Its asset-light business strategy, which functions as a platform to connect visitors and hosts rather than owning and running its own hotels or vacation rentals, is one of its primary competitive advantages.
The travel industry’s uncertain future will ultimately determine Airbnb’s success, but if you are hopeful about it, you now have the chance to purchase Airbnb’s stock for a price below the $146 level it hit on its first day of trade.
Everquote (EVER)
Price as of July 6th, 2023: $6.71
Indisputable high-risk, high-reward play: Everquote. To enable customers to select where they want to purchase their auto, home, medical, life, renters, or business insurance products, the online provider of insurance quotes offers aggregated information from a variety of providers.
Share prices have fallen by more than 80% from their record highs as a result of investors’ dissatisfaction with recent results and the general decline in growth stocks.
Nevertheless, analysts continue to give the company a consensus “buy” rating with an average $12.00 price target, or nearly 31% above current levels. If the business is successful in realizing its goal of being the leading supplier of online insurance quotations, it may become the Amazon of its sector.
Opendoor Technologies (OPEN)
Price as of July 6th, 2023: $3.84
Opendoor Technologies, dubbed the “Amazon of houses” by some, is a potentially very risky company but one that could be a big winner if it can run its business successfully over the long term.
When the pioneer in online real estate went public in the summer of 2020, the stock immediately increased, but by the end of 2021, when market jitters over high-growth businesses with no profits gripped the place, Opendoor was caught up in the selloff.
Believers point to the company’s rapid expansion in a young sector that may eventually establish itself as the “new normal” for real estate transactions. However, there is no assurance that the company will become profitable in the near future. if or whether it happens will decide if Opendoor Technologies succeeds in becoming “the next Amazon” or fails.
Docusign (DOCU)
Price as of July 6th, 2023: $49.44
Due to a number of causes, Docusign’s stock began to decline in value in late 2021. Analysts and investors alike sold their shares because they were concerned that Docusign’s growth would slow down after the pandemic was over, in addition to the overall trend of rising interest rates affecting growth stock multiples.
Docusign boosters claim that the market for digitally signed papers will continue to increase and that the company was expanding quickly even before the pandemic boosted revenue.
Docusign’s future looks promising because of Salesforce and Microsoft’s growing partnership and integration into respective platforms, including Microsoft Teams and Slack. Docusign may present an appealing risk-to-reward scenario for speculative investors given the stock’s almost 80% decline from its all-time high of $310.05.
StoneCo (STNE)
Price as of July 6th, 2023: $11.33
Almost 90% off its high, does Warren Buffet’s Berkshire Hathaway stock pique your interest? Imagine if it were the cutting-edge fintech sector. If this describes you, you should check out StoneCo.
The Brazilian payment processor offers its clients a robust cloud-based technological platform to facilitate all their e-commerce requirements. Shares of StoneCo were wiped out in 2021 and 2022 along with the rest of the high-flying growth firms on this list due to the combination of Brazilian economic uncertainty, a lack of profitability, and the broader trend against high-multiple stocks.
But StoneCo’s primary business is doing well, and fintech companies have a huge window of opportunity in countries like Brazil, which lack the industrialized countries’ robust traditional banking infrastructure.
