The metaverse revolution has only just begun, but talking about new technology media suddenly seems almost unavoidable. The promise of virtual worlds as new settings for digital commerce and socialization could bring big gains for big business, but investors shouldn’t focus on the metaverse to the complete exclusion of other powerful growth trends.
With that in mind, a panel of Motley Fool contributors presented three attractive investments for growth-oriented, risk-willing investors looking for crushing returns for the market. Read on to see why they think Bitcoin (CRYPTO: BTC), IQVIA Holdings (NYSE: IQV), and Free Mercado (NASDAQ: MELI) can deliver powerful performance to your wallet.
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Bitcoin’s growth is far from over
Daniel Foelber (Bitcoin): Make no mistake, “the metaverse industry” holds hidden treasures that could bag 10 in years to come. But when analyzing markets for places with the best risk / reward profile, the unproven nature of the metaverse arguably makes it less appealing than many cryptos, growth stocks, and blue-chip stocks. While meme action moguls can make you feel like you need a home run to hit your long-term financial goals, getting on the base and avoiding strikeouts is really the thing. more important.
Industry leaders have a knack for growing over time and outperforming the market. If you’re considering the metaverse, chances are you have a high risk appetite and don’t want to go for a traditional on-sale growth stock like Pay Pal or MercadoLibre (although both look great right now). On the contrary, I think one of the best options for risk tolerant investors is simply Bitcoin.
There are very few assets that can really grow tenfold or more in the years to come. Despite its monster performance over 13 years, Bitcoin could still increase significantly from here. The reason is that Bitcoin is taking advantage of so many global trends such as decentralized finance, the need for inflation hedging, a store of value with limited supply, a medium of exchange in countries that have no no stable fiat currency and easily exchangeable currency. and a secure asset.
As with any risky asset, it’s important to remember that the maximum you can lose is 100%, but the more you can earn is more. Considering that we could be on the brink of a crypto winter, it wouldn’t be surprising if Bitcoin suffers a 50% or more drop. This type of volatility is something investors should be comfortable with before investing in crypto. It will probably be a bumpy race. But for those who can handle the turmoil, simply averaging Bitcoin dollar costs seems like a simple and effective strategy.
At the crossroads of technology and health
James brumley (IQVIA Company): It’s anything but a household name, but that doesn’t make IQVIA Holdings any less appealing. In fact, the lack of attention given to it makes it an even more compelling prospect.
Simply put, IQVIA helps various healthcare companies make better use of technology. This idea in itself is not new. What is new, however, are the capabilities that new technologies can offer. IQVIA can provide everything from artificial intelligence to best manage clinical trials, data-driven treatment advice tailored to individual patients, and even clinical trials of new drugs with patients who are not all the same. place. These are things that just weren’t achievable just a few years ago.
And the healthcare industry loves it, if the numbers are any indication. Revenue is set to improve by 22% for the current fiscal year, and although this growth is expected to slow to just 8% next year, earnings per share are still expected to increase by 14% in 2022. after rising 39% this year.
IQVIA has a 95% accuracy rate in predicting outcome for patients with heart failure and many drug manufacturers use its platform to manage more than 80 different decentralized clinical trials. The company really strikes a chord with a bunch of healthcare companies that have been waiting for this kind of technology for a long time.
This fast growing e-commerce and fintech leader looks cheap
Keith Noonan (MercadoLibre): While e-commerce is already fairly well established in markets such as the United States, Europe, and China, it is at a much earlier stage of growth in Latin America. Card and mobile banking and payment services are also in much earlier stages of adoption, but are rapidly gaining ground in the territory. MercadoLibre is an Argentina-based company providing online retail and financial technology solutions to the Latin American market.
With inflation, political instability and other economic headwinds creating challenges in Brazil and other key markets, it is true that the year has been difficult for the company in some ways. MercadoLibre managed to show strong trading performance despite these factors, but that did not stop the company’s stock price from falling. The stock is trading around 44% off its 52 week high, and it’s time to jump on this one.
For a company that holds leadership positions in two of Latin America’s most attractive growth markets, MercadoLibre’s valuation of around $ 57 billion still leaves plenty of room for growth. Despite facing a difficult macroeconomic backdrop and having passed the record quarter of 2020, marked by the pandemic, MercadoLibre managed to increase its sales by 73% year-on-year in the third quarter and its growth history n is still in its infancy.
E-commerce and fintech services have growth avenues in Latin America, and MercadoLibre has solidified as a leading player in both categories. The strong trading performance, resilience and flexibility of the company have not been reflected in its recent stock market performance, and investors should consider buying the stocks before that starts to change.
10 stocks we like better than Bitcoin
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Daniel Foelber owns Bitcoin and MercadoLibre. James Brumley has no position in the stocks mentioned. Keith Noonan has no position in the stocks mentioned. The Motley Fool owns and recommends Bitcoin, IQVIA Holdings, Inc. and MercadoLibre. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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