3 Top Stocks To Buy With Your $600 Stimulus Check
Amid the upsetting numbers of the novel coronavirus, there is understandably little to cheer about. However, there is some relief with the positive developments on the coronavirus vaccine front from Pfizer (PFE Stock Report) and Moderna (MRNA Stock Report). Furthermore, the approval of the $600 stimulus checks is welcome news for many. Naturally, it brings up the idea for investors looking for the best stocks to buy in the stock market today.
According to Envestnet Yodlee, Americans that earned between $35,000 and $75,000 annually traded 90% more the week they got their stimulus check compared to the previous week earlier this year. This happened even when tens of millions filed for unemployment benefits in the U.S. So, what is this suggesting? Could investors see another round of increased activity in stock trading activities? While investing your stimulus money is certainly one positive way to use it, it would be better for you to participate in the stock market after paying off all the essentials and outstanding debts.
You see, for some Americans, the $600 payout might represent a lifeline to pay bills or put food on the table. Yet for others, it’s the extra money that could be put to work in the stock market. And if you are fortunate enough to fall into the latter category, it could be a great opportunity to invest in your financial future. And here are three great stocks to consider that could thrive in a post-pandemic world.
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Best Stocks To Buy [Or Avoid] This Week: Etsy Inc.
Etsy (ETSY Stock Report) has had a big year, considering the broader surge in online spending. The company is a global marketplace for handmade or vintage items and craft supplies. From unique handcrafted pieces to vintage treasures, Etsy has it all. With people being furloughed and unemployed, more people have turned to Etsy to make a living. The company’s shares are up by over 300% year-to-date.
From the company’s third-quarter fiscal posted in October, Etsy posted revenue of $451 million, a jump of 128% from a year ago. It also reported over 15 million new and reactivated buyers on Etsy, an increase of 112% year over year. This along with 69 million active buyers that have purchased at least once in the year is certainly an impressive figure to boast. CEO Josh Silverman says that consumer shopping habits have been greatly influenced by the events of 2020. Etsy truly stands for something different as it has been able to sustain growth by driving retention and becoming an important shopping destination for new buyers.
Of course, there is a chance that Etsy can continue its momentum into 2021. But with the vaccine rollout in sight, we should manage our expectations. After all, the growth in online spending could taper off when the economy reopens fully. Then again, new habits could stick around. Some of the new users who used the platform this year may return again. Considering all these, ETSY stock is certainly worth watching going forward.
Best Stocks To Buy [Or Avoid] This Week: PayPal Inc.
Coming up next, PayPal (PYPL Stock Report) continues to see its stock price breaking new highs recently. Some would argue that it is the rise of contactless payment that sent its stock over the roof. But others are saying that it is the meteoric rise of bitcoin that contributes to the rise of PYPL stock. I would go with the latter, and here’s why. According to Pantera Capital, PayPal clients have been buying the majority of the new bitcoin supply. No doubt, PayPal is at the forefront of digital finance. Its services range from mobile commerce to peer-to-peer transfers. And now, offering cryptocurrencies on its platform could lead to asymmetric returns. If crypto becomes fully established and regulated, PayPal could stand to benefit hugely.
That’s not all, the company also saw a boost of demand in electronic payments as consumers have been avoiding physical cash. That’s to curb the spread of the novel coronavirus. And this trend contributed significantly to PayPal’s business. On top of that, the company has reached record growth for new accounts this year. By introducing new services and products such as QR codes for payments, PayPal is diversifying its revenue sources. It also recently launched an installment payment program called Pay in 4, which allows customers to pay in installments, interest-free. That brings PayPal head to head with “buy now, pay later” companies like Affirm, which filed for an IPO earlier this year.
With bitcoin breaking $27,000 for the first time over the Christmas holiday, it is not surprising that PYPL stock tops the list of top stocks to buy on investors’ radar. Recall a survey from Mizuho Securities showing that, within one month, 17% had already used PayPal to trade cryptocurrency. And with over 305 million users worldwide, that means over 50 million PayPal users have transacted in the cryptocurrency. Now, the real question here is, will PYPL stock continue to rally considering it is trading near its all-time high? Your guess is as good as mine. With all that in mind, would you add PYPL stock to your watchlist as digital payments continue to gain more traction?
Best Stocks To Buy [Or Avoid] This Week: Fastly Inc.
Lastly, we have fast-growing tech stock Fastly (FSLY Stock Report). As the name suggests, the edge cloud computing company speeds up and secure the content delivery process for its clients. With the company’s share prices up by over 350% year-to-date, investors are beginning to wonder if there’s more room for stock price appreciation. If you ask me, It is normal to be skeptical after a big run. However, the company’s recent momentum seems to suggest that its growth is far from over. And with the future of U.S. business and consumption moving online and into the cloud, you could say that the demand for Fastly’s solutions is only going to get even more sought after over the next decade.
On December 16, the market leader in client-side website security, Source Defense, announced a collaboration with Fastly. The deal involves running a comprehensive cybersecurity training program. Source Defense CEO Dan Dinnar said, “Given the combination of increasing cyber threats facing businesses and the growing number of open cybersecurity jobs, the need to attract and certify professionals in the industry has never been greater.” Understandably, this could bode well for Fastly as it could stand to flex its expertise on cybersecurity with a broader clientele. In turn, this would not only expose it to more potential clients but could also cement its reputation in the long run.
From the company’s most recent financial report, the company also blew investors out of the water. Fastly reported a 42% jump in total revenue year-over-year. With enterprise customers generating 88% of its trailing twelve-month total revenue, the company’s recent play makes sense. Fastly seems to know where its strengths lie and could be looking to grab even more of the market share. Could FSLY stock continue to grow in 2021 and beyond? You be the judge.