It has been a crazy year that the investment community will not soon forget. Broadly-based, in a stretch of roughly six months S&P 500 Lost more than a third of its value and regained it. This was the fastest bear market decline in history, after which the record market recorded the fastest new high.
The heightened volatility during the Coronovirus Disease 2019 (COVID-19) pandemic is particularly interesting in how it brings millennials and novice investors out of the woodwork and into the stock market.
The online investment app Robinhood, best known for its commission-free trades, partial-share investments and free stock gifts to new users, has seen its member count grow by millions this year. The average age of millions of Robinhood fans is just 31.
On one hand, it is fantastic to invest money to work in the stock market at an early age. As broad markets and high-quality businesses increase in value over time, the ability of compound investors is much higher in favor of younger investors.
Again, the Robinhood platform has not provided a very good job to millennials and novice investors, they are the tools they will need to succeed long term. Instead, Robinhood investors are known for chasing penny stocks or generally terrible companies.
If Robinhood investors want to succeed and make serious money, they will need to adjust their game plan in two ways. First, they need to think long-term to allow their investment thesis to play out. Second, they should look for high quality businesses to invest in.
As long as they have a horizon-centric view, these are the three right stocks for Robinhood investors to buy now.
Over time as their partners, young investors should make their stock a core part of their portfolio. This is why the Edge Cloud Platform service provider Fast (NYSE: FSLY) There is a company that can be bought by handful of millennial investors.
As you may recall, Fast recently dropped its third-quarter sales guidance into a new range of $ 70 million to $ 71 million from a prior forecast of $ 73.5 million to $ 75.5 million. took. The company cut revenue due to weakness from the company’s top customer, Tiktok, which President Trump has threatened to ban in the states. Apparently, this threat slowed the use of Tiktok in the recently ended quarter.
It is unfortunate that the company, which held a 12% share in Fastley’s revenue in the first half of 2020, saw its data usage decline in the third quarter, but it is far from an end-of-days scenario. Rapidly reduced guidance still means a 42% year-over-year sales growth at the midpoint. In addition, Rapid reported its fastest growth in new customer growth during the second quarter since its initial public offering. It is safe to say that most of its customers are spending more money on increasing demand for content delivery. This should be a positive for Fastley’s gross margin.
Ultimately, the company’s sales modification may prove to be a blessing in disguise for long-term investors.
Another true stock that provides game-changing ability for Robinhood investors to hold on to over the long term category (NYSE: SQ). Although Square is pricey, it still offers an extraordinary upside from its two major growth drivers.
Square’s best-known development segment is the company’s vendor ecosystem, which provides point-of-sale devices, data analytics and even loans to businesses. Square’s vendor ecosystem has been a growth driver primarily for small businesses, but this merchant-fee-driven segment is now increasingly used by medium- and large-sized businesses. Square defines these businesses as gross annual income of at least $ 125,000. In the first half of 2020, 52% of the total GPV crossing network came from these medium or large businesses. If this trend continues, merchant-fee revenue may increase.
The rapid development of the peer-to-peer payment platform Cash App is even more exciting for Square. Between the end of 2017 and June 2020, the number of monthly active users of the Cash app has quadrupled from 7 million to 30 million.
The Cash app allows Square to grow in various ways, as the company collects merchant fees with purchases, quick service fees for bank transfers, and bitcoin exchange fees. By 2022, the cash app should be Square’s major profit driver.
Robinhood investors would also be wise to consider a Singapore-based purchase C Ltd (NYSE: SE) For a longer period.
You may have heard that South East Asia can give better growth in the coming decades. There are few standout companies focusing highly on this developing region of the world. C Ltd keeps investors focused, as well as the possibility of sustainable high-digit sales growth.
Sea’s gaming division makes up the bulk of its revenue. The company’s mobile hit game, Free fire, With more than 100 million global daily active users in the second quarter. Monthly payments to users have more than doubled in July 2020 on a year-on-year basis.
But it is not the company’s gaming sector that will attract investors to its stock. Rather, it is the company’s e-commerce platform Shopee, as well as its venture into digital financial services.
What is likely to happen in the online shopping platform Shopee MercadoLibre Poses for South America. While the deficit is currently as large as a massive sea reinvestment in the e-commerce platform, adjusted revenue for e-commerce grew almost triple in the second quarter, with a 150% jump in gross orders. There is a middle class in the region who take comfort in ordering products online during the epidemic. Even in a post-pandemic world, the shoppy stage is here to stay and expect to see a serious increase.
Additionally, C noted that the number of paying mobile wallet customers in the second quarter exceeded 15 million.
It has many ways to make money, making it a logical purchase for Robinhood investors.