Despite its share price earlier this week, TeslaOf (Nasdaq: TSLA) The stock has been on a tear this year. The electric-vehicle manufacturer has seen its stock price climb by an impressive 340% year-on-year, as investors have observed Tech stock In the last few months.
If Tesla’s business is not your cup of tea, don’t fret. There are many other high-growth tech stocks that can be fantastic long-term investments. To help you find something, we just asked three Motley Fool contributors for their top picks, and they’re back MongoDB (NASDAQ: MDB), Zoom video communication (NASDAQ: ZM), And category (NYSE: SQ). Read on to find out why.
MongoDB: Tesla of the database industry
Brian Vidar (MongoDB): Gasoline-fueled engines generate electricity in cars in the primary way WadeModel-T in the early 1900s, but Tesla is changing. It may not have produced the first electric vehicle, but it has certainly created an incredibly popular lineup of cars that are disrupting the auto industry’s long-standing love affair with internal combustion engines. MongoDB is doing the same thing for the database.
Since the 1970s, the world’s most popular databases have been based on an architecture, based on rows and columns referred to as a structured query language (SQL) database. But MongoDB’s documentation (or no-SQL) database was built from the ground up to enable today’s high-performance cloud applications. Like Tesla, this is just the beginning of an incredible runway of development.
In its last three years, MongoDB has maintained an impressive compound annual growth rate of 61%. With Coronovirus’s slow-moving commercial investment, the database specialist has cooled the growth, bypassing 46% and 39% year-over-year growth for the first quarter and second quarter, respectively. But the database market is growing to $ 97 billion by 2023, and MongoDB’s $ 502 million holds its share of less than 0.5%, leaving behind twelve-month revenue. There is plenty of room to grow with its flagship Atlas product in the path of this clutter.
Atlas is MongoDB’s cloud-based product, which allows software developers to start with a free trial for building prototypes and scale them as needed. Atlas revenue grew 66% in A2, to 44% of the total top line with over 18,800 subscribers. This cloud-based model allows the company to keep an eye on developers, provide insights to improve the product and give sales teams a solid lead and lead to customers who may become very large customers in the future.
MongoDB’s developer-focused platform had made it the most popular document database as rated by DB-Engines, giving it incredible momentum to grow for years to come. With the stock recently taking a step back, now would be a good time for the database industry to come to Tesla.
Business meetings have changed forever
Danny Vena (Zoom): I have the attraction of investing in a revolutionary company like Tesla, and I am also a shareholder. That said, I think investors would be better off buying Zoom Video Communications, which has everything Tesla has – and more.
The pandemic to the epidemic and consequent living order and remote work has had a profound impact on many aspects of our lives and work. Face-to-face meetings at the age of COVID-19 are not practical, and that is what zooms in.
The company provides cloud-based video conferencing services that have become almost indispensable for both business and in-person meetings. This gave many companies the option of “business as usual”, helping to keep in touch with families and friends as much as possible, at least amid an epidemic.
Zoom was already on a roll. For the fiscal year ended January 31, the company generated revenue of $ 623 million, an increase of 88% over the prior year, and was already profitable – a discrepancy between young, fast-growing companies – With earnings per share (EPS) $ 0.09. Consider Zoom’s track record since the emergence of coronovirus.
For the first quarter, Zoom reported revenue of $ 328 million, equivalent to 169% year-over-year, while its EPS of $ 0.09 was as much as all of the prior year Joint. Its client base has grown at a high rate, with customers with more than 10 employees growing by 354%, while those contributing more than $ 100,000 in trailing 12-month revenue grew by 90%.
Given that Zoom offers a free service with limitations, many believed the company could continue its fertile growth. they were wrong.
In the second quarter, revenue increased more than twice sequentially, climbing to $ 664 million, up 355% per year, while EPS rose more than 30 times to $ 0.63. At the same time, customers with more than 10 employees grew 458%, while those contributing more than $ 100,000 in trailing 12-month revenue grew 112%.
It was not just new customers who filled the company’s coffers. Zoom’s trailing 12-month net-dollar expansion rate was up 130% for the ninth consecutive quarter, suggesting current customers are spending an average of 30% more than last year.
The breadth of Zoom’s use during the epidemic has made the company name synonymous with videoconferencing and has become a verb in the process: “Let’s zoom.”
It does not stop there. Zoom is expanding its services, offering a hardware-as-a-service component that will be available for both Zoom rooms and Zoom phones. Zoom Home is also expanding and will be available on a growing number of smart displays, including AdventuressOf (Nasdaq: AMZN) Echo Show and FacebookOf (Nasdaq: FB) Portal, among others. The company’s zoom phone cloud-based service is expanding to 25 new countries, bringing the total to 40.
Zoom has become a household name, and given its quick financial results and large and growing opportunity, I think it has a greater opportunity to enrich shareholders than Tesla.
An e-commerce winner
Chris negar (category): There are plenty of ways for investors to play the e-commerce angle, and a big opportunity is through the payment-solutions company, Square. You’ve probably seen Square’s white payment terminals at restaurants and shops, but the company also has digital payment solutions, and its popular cash app makes it easier than ever to exchange money between people.
The company’s digital solutions have become particularly important right now because COVID-19 has excluded people from retail stores and restaurants and their homes. The growth in e-commerce sales over the past few months helped Square increase its net revenue by 64% in the most recent quarter. Additionally, the company’s Square Cash sales excluding bitcoin sales increased 140% in the quarter.
Square is not just satisfied with its payment-solution services, however. The company also has its own Square Capital service, which lends money to businesses. The service helps end the Square Financial ecosystem as it offers something for everyone, from small businesses to peer-to-peer paying consumers.
Square’s share price has risen 132% this year, but that doesn’t mean the company won’t continue distributing for investors. Despite the recent development, the e-commerce market is still starting. Online retailing makes up just 16% of all US retail sales, and as the percentage increases, Square’s payment solution is likely to expand right along.
But Square is more than just a fast-growing tech stock. The company has already proved that its business can thrive during tough economic times and continue to tap into the huge US e-commerce market at the same time. And with the e-commerce market expected to be valued at $ 476 billion by 2024, Square has plenty of space that will continue to benefit as consumers shift their habits to online purchases.