Do you have $ 1,000? Consider these 3 actions now
Investing in 2020 has been a roller coaster of uncertainty and bullish sentiment, with the fastest bear market in history followed by an equally rapid return to record highs. Savvy investors are taking advantage of the recent downturn and buying stocks that have proven to be solid investments during this turbulent year.
Here are three stock choices where you could invest $ 1,000 now and enjoy big, long-term benefits.
1. Pinterest: Lots of growth potential despite tripling in value
Pinterest (NYSE: PINS) has been trending higher and higher since its low of $ 11 per share in March 2020, nearly tripling in value in the following months. It makes sense. As a fully online social entertainment and interest-sharing platform, Pinterest has not only benefited from the general public’s time spent online and at home over the past six months, it has exploded in ways positive with increased use.
In fact, what makes this company so exciting is the growth potential it still has. Pinterest earlier this year announced plans to monetize further through an expansion in social commerce, leveraging a partnership with Shopify to make it easy for users to purchase items pinned to their boards.
Why is this important? Previously, ads were Pinterest’s main source of revenue, and the company seemed to be struggling to find new opportunities for growth. But with solid market research indicating the growing importance of social recommendations in purchasing decisions, the company now has a great opportunity to improve its average revenue per user. In the first half of 2020 alone, almost 50% of users came to Pinterest with some sort of purchase intent. Ultimately, this strategic pivot could propel the company towards profitable territory.
2. PayPal: add new products to continue growth
As traditional banks have gone through tough financial times this year, the digital payment provider Pay Pal (NASDAQ: PYPL) flourished. Social distancing has contributed to a strong tailwind in digital businesses and accelerated a trend towards e-commerce.
The company was already publish solid numbers over the past five years, with net income nearly doubling by 2019. But combined with a major move towards digital commerce and payment, PayPal has raked in net profits of $ 1.5 billion over the past year. only second quarter of 2020, which is the equivalent of all of its net income in 2015!
Even more promising, the company claims a huge total addressable market. Mobile commerce, peer-to-peer transfers, and other digital services add up to nearly $ 110 trillion in total market value, and PayPal intends to roll out another suite of products later. this year to take more advantage of the favorable winds of the pandemic. All of this means that PayPal’s current earning potential may be in its infancy.
3. DocuSign: take advantage of the remote working trend
Electronic signature service provider DocuSign (NASDAQ: DOCU) is yet another company that has benefited from the tailwind of the pandemic. As companies already embrace the paperless approach to deal management, the sudden need for digital cooperation has proven just how important DocuSign is. early bird approach would play in the future.
The company saw a 55% year-over-year increase in business and commercial customers in the second quarter of fiscal 2021, and its improved margins helped further reduce its net losses by seven percentage points . In fact, DocuSign’s leadership drove a 43% increase in total revenue for this year, in part thanks to increased adoption rates for digital agreements.
DocuSign is currently trading below its 52 week high, but it still has very high market potential. More and more businesses are seeing significant cost reductions as they move towards a paperless future, and there is little reason to believe that the steam behind this trend will fade anytime soon.
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 motley! 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.