4 Hot Growth Stocks To Watch In The Stock Market Today
Growth stocks have had a rough start in 2022. A combination of factors including the widespread Omicron variant and persistent inflation have dampened the risk appetite of investors. Naturally, this has led to sell-offs among many growth names with premium valuations. But now, they are beginning to look more attractive again.
Investing in top growth stocks can potentially boost your portfolio and generate market-beating returns over the long term. And by sticking with a long-term plan, it helps cancel out the noises in the stock market and perhaps even bring life-changing returns. Not to mention, the recent downturn provides fresh opportunities for some to pick up some beaten down growth stocks. While identifying a winning growth stock that trades ‘cheaply’ could be challenging, those who persist may find themselves richly rewarded.
Take Amazon (NASDAQ: AMZN) and Meta Platforms (NASDAQ: FB) for example, if you held their stock from 10 years ago until today, the returns would be astronomical. Even at their current prices, these companies are still looking attractive to some investors, especially after Meta’s recent foray into the quickly growing metaverse industry. With all that in mind, here is a list of top growth stocks to keep tabs on in the stock market today.
Top Growth Stocks To Watch Right Now
- Fiverr International Ltd. (NYSE: FVRR)
- Block, Inc. (NYSE: SQ)
- NIO Inc. (NYSE: NIO)
- Sea Limited (NYSE: SE)
First up, we have Fiverr, a platform for freelancers to offer their services to clients around the world. As Fiverr’s platform is easily accessible for both freelancers and clients, the platform quickly became a hit among many. Fiverr operates in the gig economy sector, a growing sector that includes jobs like e-hailing and food delivery. However, Fiverr does not bind freelancers to a specific gig. Instead, it allows freelancers to offer their own expertise. These freelance services can range from designing a business card to editing a music video.
In November, the Israel-based company announced that it will be acquiring Stoke Talent, a platform that allows companies to manage their freelance teams. Notably, the acquisition will take place for $95 million. Evidently, this is a strategic play on Fiverr’s part to stay in the gig economy by building in more features for its users. In brief, Stoke’s platform gets rid of the financial, admin, and legal headaches of working with freelancers. Stoke Talent will continue to operate independently, but its product will be integrated with Fiverr. On that note, would you be keeping an eye on FVRR stock?
Next on the list is Block, formerly known as Square. The technology company primarily focuses on financial services. Block builds platforms to provide better access to the economy. For instance, the company’s platforms include Square, Cash App, and Spiral. In detail, Square helps sellers to run and grow their business with its integrated ecosystem of commerce solutions and banking services. Cash App, on the other hand, allows anyone to send, spend, or invest their money in stocks or Bitcoin.
This week, the Bank of Spain approved Block’s buyout of Australian buy now, pay later firm Afterpay Limited (OTCMKTS: AFTPF). Given this approval, the two companies can now implement the deal, which would be Block’s biggest deal to date. According to Afterpay, the deal is likely to close on February 1 and its shareholders were in overwhelming support of this deal. Yesterday, Square announced the availability of on-demand delivery for Square Online orders in Canada through DoorDash (NYSE: DASH) Drive. With this, any seller using Square Online across Canada can tap into the DoorDash logistics network for deliveries. With these developments, could SQ stock be one to buy?
Following that, we have Nio, the Chinese EV giant. Nio designs, manufactures, and sells smart and connected EVs. Besides that, the company also offers comprehensive value-added services and also an innovative suite of charging solutions to its users. Specifically, this includes Power Home, which is its home charging solution, and Power Swap, an innovative battery swapping service. With NIO stock losing nearly half its value over the past year, could things be turning around?
This week, news broke of the company’s decision to form a new strategic partnership with Chinese steelmaker Baoshan Iron & Steel (Baosteel). According to Nio CEO William Li “NIO needs a global partner like Baosteel to work hand-in-hand on products, supply chain, technology innovation, new material applications and zero-carbon pathways.” In other news, HSBC analyst Yuqian Ding reiterated a buy rating on NIO stock and raised the firm’s price target to $54, an 87% gain over Monday’s closing stock price. The analyst alluded to Nio’s continued growth in EV deliveries after Nio reported over a 109.1% year-over-year increase in 2021. Considering all these, should you be watching NIO stock?
Last, but not least on our growth stock list is Sea. It is a global consumer internet company with headquarters in Singapore. For the most part, the company operates in South East Asian countries. The company primarily operates three core businesses across digital entertainment, e-commerce and digital payments/financial services. Precisely, they are Garena, Shopee, and SeaMoney. Accordingly, Garena is an online game platform as well as a mobile game developer. Shopee is a mobile-centric e-commerce platform with its own logistics infrastructure and seller services. And SeaMoney provides various payment services and loans to individuals and businesses.
In November, the company reported a strong third quarter. In detail, total GAAP revenue was $2.7 billion, an increase of 121.8% year-over-year. Next, the total gross profit for the quarter was $1 billion, up by 147.5% compared to a year ago. Its e-commerce GAAP revenue was reported to be $15 billion, double from the year prior. On top of that, its e-commerce platform Shopee seems to be doing very well. In Southeast Asia and Taiwan, Shopee continued to rank first in the Shopping category by average monthly active users and total time spent in-app for the quarter. Given all of this, would SE stock make your list of best growth stocks to buy?
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