This year has definitely been like one another. It is one of the fastest recovery in the history of the stock market after the result of fear of an epidemic. The recent introduction of at least two coronavirus vaccines has given people hope and pushed the major stock market indices to new all-time highs.
It is not yet clear whether the economy affected by this epidemic will actually return to normal and uncertainty will still reign. Two things though Is Certain: Investing in quality stocks over the years or perhaps decades is a clear way to generate wealth in the long run, and while the market is still setting new benchmarks, stocks are worth buying.
Assuming you have enough emergency funds and (10,000 (or less) that you don’t expect to need in the next five to 10 years, here are three companies that are set to grow in the coming years and decades.
1. CrowdStrike: Providing digital security in an uncertain world
There is no denying that large shifts in remote work resulting from the epidemic have been postponed. The scattering of employees presents unprecedented challenges for IT departments to protect businesses and employees from the growing threat of cyber-intrusion. Crowdstrike Holdings (Nasdaq: CRWD) Clan was there to answer.
Stopping cyber security threats before they catch on is the key to a cloud-based company. This comes courtesy of its Falcon platform, which focuses on protecting endpoints – servers, desktop ops, laptops and mobile devices – from legitimate threats.
But his work doesn’t stop there. CrowdStrike’s Cutting Edge Protection uses cloud analytics, artificial intelligence (AI) and real-time visibility to power its Threat Graph Breach Prevention engine. These sophisticated algorithms not only detect and detect breaches and stop them in their tracks, but over time they learn and improve, and use the power to stop threats to the next generation. As new customers join these folds, its network becomes stronger.
Business is booming. For the first nine months of 2020, Crowdstrike’s revenue is up 85% from a year earlier. This was driven by annual recurring revenue which increased by 81% and net new subscriptions with an increase of subscribers which increased by 88%. The company has yet to make a profit, but the results are moving in the right direction, as Crodstrike has reduced losses by about 62% so far this year.
No. Remote Dustrick is in a good position not only to benefit from the ongoing need for remote work but also to continue to provide cybersecurity in the increasingly dangerous digital world.
2. Twilio: Create instant communication in the app
One thing that has become increasingly clear this year is the need to keep the line of communication open between businesses and their customers. Instead of rearranging the cycle, many turned to companies with customer-facing applications Twilio (NYSE: TWLO) To bridge the gap. A growing number of developers are embedding the company’s communications technology into their applications, working behind the scenes to process calls, video and text messages without ever leaving the application.
Sound familiar? Is it your real-time messages that you receive through your food delivery service or rideshare provider? Ability to reset password without leaving application? Chat in that app with customer service? There is a good chance that many of their experiences were driven by Tulio’s technology.
The importance of reaching out to customers who helped increase Twalio’s fortunes remained even more important during the epidemic. During the first nine months of 2020, revenue increased 51% during the year. In surprising growth, Twilio delivered adjusted (non-GAAP) profits in the third quarter, while investors were expecting losses.
Tivilio’s active customer base is up 21% year-over-year. The company is not only adding new customers at a faster pace, but existing customers are expanding their relationship with Twilio, spending an average of 37% more this time than last year.
More important to investors was the recent acquisition of the customer data platform segment, which pushes Tvilio forward in the field of customer engagement services. This will provide businesses with a view of customer information of different transactions for more seamless and effective customer engagement. The move also significantly increases Twilio’s total addressable market.
The importance of customer communication has never been more important and Twilio provides tools that help bridge the gap.
3. Datadog: Giving the cloud a silver lining
The shift in cloud computing was already in full swing but was pushed randomly by the epidemic. The strategic importance of overseeing and maintaining these cloud-based systems cannot be overstated, and continuing these employee- and customer-facing systems is even more important than ever, as any downtime can be crucial and costly. There it is Datadog (Nasdaq: DDOG) Come inside.
The Cloud-Native Platform-A-A-Service (PAS) provider provides a variety of monitoring services that collect important information from business cloud-across operations, dragging data into a single dashboard, and notifying developers when there is a problem. Is. Crucial downtime results. Datadog’s ability to break the cycle and bring together otherwise fragmented data makes it a top choice among developers.
That is why the platform for application performance monitoring has been chosen by the research company Gartner, Who named it “Visionaries” for 2020 in its Want Magic Quadrant. Also recognized by the company as an industry leader in smart application and service monitoring Forrester Research. Consumers agree, with 98% giving Datadog a four- or five-star rating.
Business is fast. In the first nine months of 2020, Datadog recorded revenue, up 71% year-over-year. The company is also on the verge of continued profitability and has reduced its losses by 85% so far this year. Even more impressive is the fact that a year after the company’s announcement, Datadog has recorded these achievements.
The need to keep and maintain complex systems has never been more important, so investors should consider taking Datadog for a walk.
One word on evaluation
Each of these companies offers the opportunity for mind-boggling growth over the next decade, but like many high-growth stocks, they fall into the high-risk, high-reward category. As such, they are not cheap in any way. Row Dustrick, Datadog, and Twilio sell 53, 511, and 34 times, respectively – while the price-to-sales ratio is generally considered to be between 1 and 2, the higher sticker price is partially explained by each as noted in the chart above. Stock performance so far this year.
Each of these companies has come to understand the basic, yet crucial fact for software-as-a-service-businesses: the lifetime value of new customers is much higher than what it costs to acquire it, so profits can be elusive for these flyers.
So far, however, investors have been more than willing to pay for impressive top-line growth and the prospect of outstanding explosive profits.