Do you have $ 5,000? These 2 growth stocks are smart purchases
Many growth stocks have seen volatile trading in recent months. Inflationary concerns and rising bond yields and interest rates scared some traders off the market and triggered massive sell-offs in 2021. But the pullback also created opportunities to build positions in affected companies, but the sale of the larger market is still well positioned for the long term. Success.
Many growth-dependent tech stocks have fallen out of favor since peaking in the first quarter of the year, but investors can still score points with some category leaders. In fact, here are two high growth tech stocks worth buying right now. Let’s find out a bit more about them.
Airbnb (NASDAQ: ABNB) has already reshaped the travel and hospitality industries, and its rapid growth and innovative approach to the short-term rental market has helped the stock be relatively resilient amid market volatility. Despite this, stocks are down about 21% from their all-time highs. The company now has a market cap of around $ 108 billion and is trading at around 19 times expected sales this year.
Given the market turmoil, it is not necessarily unreasonable to approach the growth dependent valuation of the company with a cautious eye. On the other hand, Airbnb is a large company that appears to have a long track to expand, and the passage of time may come to redefine the company’s current valuation as being very cheap.
While the real estate rental specialist appears to be emerging from the worst challenges encountered during a pandemic, Airbnb’s activities are recovering and posting impressive figures. The company’s second-quarter sales jumped nearly 300% year-over-year and also grew 10% from second quarter 2019 sales. Even with some challenges yet to be overcome, there are chances are the company will post the best quarterly performance on record when it releases third quarter results in mid-November.
Airbnb has already helped make travel more convenient than ever, and the company is well positioned to benefit as trends in work from home and digital nomads give people more flexibility as to where they live. and how they spend their time. The stock could make big gains in the near term as headwinds continue to dissipate, and it continues to offer attractive risk-reward dynamics for long-term investors.
2. Take-Two Interactive
Video game publisher Take-Two Interactive‘s (NASDAQ: TTWO) Grand Theft Auto the franchise is an absolute money printer. Grand Theft Auto V, which was first released in 2013, is not only the most successful video game in history, it is also the highest-grossing entertainment release of all time.
The game has been kept alive through a series of re-releases and content updates that have encouraged players to purchase new versions of the game and stay engaged in its highly profitable online mode. Developing content plugins tends to be a lot cheaper than building entirely new games, and GTA VThe solid core gameplay of and a growing variety of things to experience in its online world has forced gamers to spend on the in-game virtual currency.
Grand Theft Auto V has already sold over 150 million copies, and Take-Two Interactive is set to release another version of the game for MicrosoftXbox Series X and Series S consoles and Sonyon PlayStation 5 next March. As a conservative estimate, I think the next GTA V the release will add at least 10 million more units to the game’s lifetime sales, and this will also help keep players engaged with Grand Theft Auto Online.
If that is not enough Grand Theft Auto for you, the company is also preparing a remastered trilogy of other games already released in the series. Video games with long product lifecycles can be extremely profitable, and Take-Two’s ability to retain audiences RGT reflects the management of the franchise and the sustainability of the property.
And while Grand Theft Auto has been a huge success that has shaped the industry, it is far from the only bankable franchise in Take-Two’s stable. In addition to a strong library of small series, the company NBA 2K and Red Dead Redemption franchises are also massive hits, and the publisher has made acquisitions in the mobile gaming space to bolster long-term growth opportunities on the largest gaming platform.
Take-Two Interactive has established itself as a leader in the global gaming industry, and the action stands out as an excellent game for investors who want to enjoy the long-term growth of interactive entertainment.
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