Are You Watching These Stocks In The Stock Market Today?
It’s a new year, and it means new opportunities for investors to look for the best stocks to buy for 2021. What could be a better place to put your money than the world’s best wealth generator: the stock market. Investing in 2020 has been rather exciting for some. That’s if they have been investing in companies that are in e-commerce, cloud computing, and basically everything else that requires social distancing. Many would call these work-from-home stocks. With a monstrous run in these stocks, investors are beginning to wonder if the same tailwind that sent these stocks higher could do the same this year.
How To Look For Best Stocks To Buy In The Stock Market?
No question, tech stocks were the best growth stocks in the stock market in the past year. The Nasdaq Composite, powered by top tech stocks, soared 43.6% in 2020. This leaves investors thinking if their investment in tech could still potentially double in value. Although some investors have better chances of doubling their stock price, it’s not a sure thing for these stocks to skyrocket. Perhaps, to increase your chance of finding the best winning stocks is to find those which have multiple tailwinds working in their favor. Who knows, If the right call is being made, you stand a chance for massive gains. However, investors seeking long term growth potential would also do well to monitor big dips for the chance to buy Wall Street’s big growth names.
There are many ways investors can strategize their investments. With vast information on the internet, investing in the stock market is a journey that many can now partake in. For a start, you may think of some long-term secular trends and companies that are part of these trends. Perhaps you believe that autonomous driving is the future and is a great place for growth. If so, you may consider Luminar Technologies (LAZR Stock Report) or even XPeng (XPEV Stock Report) as the top stocks to buy. And as you understand the industry on a deeper level, you may be able to identify their competitive advantages that could set them apart. Having said that, are these trending stocks the best stocks to buy in the stock market today?
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Best Stocks To Buy In The Stock Market Today
- JD.com (JD Stock Report)
- Fiverr (FVRR Stock Report)
- Magnite (MGNI Stock Report)
Best Stocks To Buy [Or Sell] Now: JD.com
First up, shares of e-commerce company JD.com (NASDAQ: JD) jumped 10.6% on Tuesday. This came after bullish commentary from Stifel analyst Scott Devitt. The analyst raised his price target from $84 to $105. This implies a potential upside of another 10% from its current price of $95.50. As China’s largest online retailer by revenue, JD.com stands to profit from the growth of the country’s massive e-commerce market. For the uninitiated, the company also possesses one of the largest drone delivery systems and solid infrastructure. These would enable the company to continue its growth in the foreseeable future, making JD a top e-commerce player in China.
From the company’s most recent financial quarter, JD.com reported net revenue of $25.7 billion, representing a 29.2% increase from a year earlier. In this quarter, the company also saw its annual active customer accounts increase by 32.1% to 441.6 million. It is the clearest indication that the company has not shown any sign of stopping. JD.com demonstrated strong growth momentum with a compound annual growth rate of 34% for its net revenue from 2015 to 2019. Not many companies can pull off such an impressive feat.
To say that JD.com is an e-commerce company is an understatement. The e-commerce giant has other rapidly growing businesses, notably in fintech and healthcare. The fintech arm, JD Digits hopes to raise $3.1 billion in an upcoming initial public offering (IPO) on the Shanghai Stock Exchange. As for its healthcare arm, the company’s majority stake in JD Health, which recently had a massive IPO success on the Hong Kong Stock Exchange could also be another reason investors have been cheering on JD stock. Considering all these, is JD stock the best stock to buy now?
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Best Stocks To Buy [Or Sell] Now: Fiverr
Next up, Fiverr (NYSE: FVRR) is another e-commerce stock that skyrocketed more than 700% in 2020. Despite its massive rally, this is still a relatively small company worth $7.5 billion. As you might already know, Fiverr is an online marketplace where sellers can sell services to buyers. These include many categories such as graphic and design, digital marketing, writing, translation, video, and hundreds more. The company is relatively new, being founded only in 2010, but has risen to popularity in the last 5 years. That’s especially after COVID-19 contributed to the reshaping of work. Don’t be surprised if many are turning to freelance gigs where one can work anywhere anytime. With the momentum in this trend, that could explain Fiverr’s recent spike in stock price.
According to a study from Mastercard (MA Stock Report), gig economy payment volume could increase from nearly $300 billion in 2020 to $455 billion in 2023. Although Fiverr can only address a fraction of the gig economy market, with the rate the company is growing at the moment, there’s a high chance that the company could continue to see upward momentum in 2021 and beyond. Let’s say Fiverr processes 10% of the $450 billion of transactions in 2023. At a take rate of 27%, that would equate to revenue over $12 billion. And if that happens, FVRR stock could be a bargain up for grab right now.
The real question here is, is Fiverr stock a buy right now? If you’re looking for a quick flip, it could be a risky thing to do considering the stocks have had an epic run in 2020. However, you may believe freelance work will continue to gain traction in the years ahead. Perhaps you are investing for the long run. With gains of this magnitude in one year’s time, volatility is something you might have to deal with for this one. If you could stomach the potential huge swings in stocks, would you say that FVRR stock is worth the risk?
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Best Stocks To Buy [Or Sell] Now: Magnite
Lastly, the largest independent sell-side advertising platform Magnite (NASDAQ: MGNI) has been trending in the stock market lately. With the seismic shift we see in ad spending, Magnite is definitely worth a closer look. It is the world’s largest independent sell-side advertising platform which operates across numerous channels and formats, including ads on streaming TV.
The company’s share prices are through the roof with gains of over 450% since the sell-off in March 2020. Magnite is the result of a merger between digital advertising company Rubicon Project and software company Telaria. The jump in MGNI stock could simply be due to the positive commentary from analysts. Needham analyst Laura Martin reportedly raised MGNI stock price to $30 per share. The company will also be presenting at the 23rd Annual Needham Growth Conference. If you are encountering this stock for the first time, you may be excited about the company’s potential. For a start, why not look at its financials?
In the most recent quarter, the company raked in $60.98 million in revenue. For the most part, it saw a 51% rise in connected TV revenue year-over-year. The reason for this could lie behind the massive rise in internet video streaming content this year. In turn, it creates a scenario whereby content producers could be relying on Magnite more to monetize their content. Ultimately, this sets up the stage for Magnite in a world dominated by streaming services. The real question remains, can Magnite make the most of these tailwinds to solidify its long-term growth prospects? Regardless, investors appear to be watching MGNI stock closely. With that in mind, would you add MGNI stock to your watchlist?