With more than half the year, the coronavirus continues to dominate the endless cycle of news. However, in the face of high unemployment and an uncertain future, Wall Street continues to push, with major indexes shaking off bad news and rising more with each passing day.
While negotiations abounded several months ago, the recent escalation has left many investors wondering where to put their hard-earned dollars as the low-cost fruit has already been plucked. Fortunately, there are good buys left if investors only know where to look.
If you have an extra $ 1,500 in cash that you don’t need for immediate spending or to bolster your emergency fund, putting it to work on these top three stocks will look like a brilliant move for years to come.
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Pinterest: antisocial networks
When it comes to social media, most people will immediately think FacebookAnd while it has certainly become synonymous with space, it is not the only game in town. Investors looking for a share with an additional advantage should consider Pinterest (NYSE: PINS), the antisocial media platform.
The app allows users to “pin” images from a variety of online sources on their personal “dashboard,” with the goal of motivating and inspiring them to travel, start a project, or try a new recipe, among many other activities. And while Facebook user growth has slowed considerably since its early days, Pinterest is only just beginning.
In the first quarter, Pinterest’s monthly active users (MAU) grew by 76 million, up 26% year-over-year, bringing the total to 367 million, driven by new record highs in both the US and international markets.
It is the opportunity outside of our borders that should excite investors the most, as international MAUs grew 34%. Average revenue per user (ARPU) is considerably lower abroad than in the US, posting $ 0.13 and $ 2.66, respectively, giving Pinterest an impressive hint for future growth.
Not only that, but as a result of the pandemic, the platform has experienced record levels of user engagement, in terms of impressions, searches, dashboarding, and visits.
It’s not just the growth in Pinterest users that has overtaken Facebook so far this year. Pinterest’s shares rose nearly 40%, more than double Facebook’s earnings.
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Teladoc: the doctor will see you now
One of the crucial changes in patient behavior as a result of the COVID-19 pandemic is undoubtedly the accelerated adoption of telehealth as a way to prevent people from congregating in waiting rooms. And as a leader in the rapidly growing field of telemedicine, no company has had more to gain than Teladoc Health (NYSE: TDOC).
In the first quarter alone, the company delivered more than 2 million medical visits to users around the world, without ever having to step into a doctor’s office or clinic. This resulted in revenues that grew 41% year-over-year. At the same time, the total number of digital office visits increased by a massive 92%. This was due not only to an increase in paid subscription visits, which grew 77%, but to paid appointments, which shot up 263%.
Those results were not unique either. For 2020, Teladoc forecast revenue growth of 47% at the midpoint of its guidance, accelerating its growth of 32% in 2019. The company also plans to expand its non-GAAP (adjusted) earnings this year.
This could be just the beginning. Many patients are trying a telehealth appointment for the first time, and once they discover the ease and convenience of a virtual doctor visit, many will continue to choose this option in the future. Also, as coronavirus cases continue to rise again in the US and blockades return, telehealth is likely to get even more converts.
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NVIDIA: GPU of the Stars (AI)
While many investors will partner NVIDIA (NASDAQ: NVDA) With its world-class graphics processing units (GPUs) that enable realistic image rendering in video games, the use of GPUs has grown beyond its humble roots.
While gaming use of GPUs still generates the bulk of NVIDIA’s revenue (around 51% last year), the company’s current and future growth is increasingly the result of its use in hubs. data, cloud computing and artificial intelligence (AI). In fact, its data center segment (which groups all three use cases together) increased revenue by 80% year-over-year in the first quarter, and accounted for 37% of NVIDIA’s total sales, and the majority of its growth.
NVIDIA CEO Jensen Huang saw the writing on the wall several years ago, envisioned the ability of GPUs, with their numerical insight, to facilitate advancements in artificial intelligence, and prompted the company to take advantage of this growing opportunity. NVIDIA is now reaping the rewards of that decision, and its GPUs are used by almost every major cloud provider, including Amazon Web services, AlphabetGoogle Cloud, and MicrosoftIt’s Azure, just to name a few.
This could be just the beginning. The global AI chip market is expected to grow from $ 6.6 billion in 2018 to $ 91.2 billion by 2025, with a compound annual growth rate (CAGR) of 45%, according to a report by Allied Market Research. As a leader in space, this illustrates the magnitude of the opportunity ahead for NVIDIA.
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The winners keep winning
Those with at least a passing interest in science may remember Newton’s first law of motion: a moving object tends to remain in motion unless an external force acts on it. Sometimes this is how investing works too.
Each of these companies has outperformed the overall market so far this year and given the strong upward trajectory and tailwinds to keep them moving, it is entirely possible that the success they have generated so far in 2020 will continue over the years, and maybe decades to come. .
