Private investors have ruled the Wall Street neighborhood for more than two months.
Starting in mid-January, retail investors in Reddit’s WallStreetBets chat room began buying out of the money into heavily short stocks using stocks and call options. Short sellers are investors who want to drop a company’s stock price. The thing about short selling is that it is mostly done by institutional investors (i.e. the so-called “big bucks”) and the losses are unlimited.
The amalgamation of these Reddit-based investors has put pressure on dozens of companies, including video game and accessory retailers GameStopwhat started the frenzy.
Smart investors are closing the curtain on AMC
Nowadays it is a cinema operator AMC Entertainment Holdings ((NYSE: AMC) For many Reddit retail investors, this is arguably high on the list. With nearly all AMC cinemas open or reopening as of March 26, retail investors are relying on consumers to rush back to the theater.
Long-term investors, however, shouldn’t get caught up in the recent hype surrounding AMC. Although it could have risen nearly 400% since the start of the year, the company has Bankruptcy filing in January narrowly avoided. The company only stepped out of the bankruptcy bar after offering nearly 165 million new shares and issuing over $ 400 million in additional debt. It’s unclear whether AMC will have enough capital to survive the next two years, or even be able to service its growing debt burden.
Make it worse AMC’s operating model has been compromised. For closed theaters, select streaming operators – AT & T.WarnerMedia on HBO Max and Walt Disney on Disney + – will release some or all of their films on their streaming platforms on the same day they are due to hit theaters in 2021. Whatever film exclusivity had operators like AMC, it was effectively thrown out the window.
These are real millionaire stocks
Instead of pouring your hard-earned money into a company that is clearly flawed, consider investing in the following trio of high growth stockswho have all the tools you need to become a millionaire.
The first company that can draw absolute circles around AMC is Teladoc health ((NYSE: TDOC), a provider of virtual health services.
As you can imagine, Teladoc put it down in 2020, in large part due to the pandemic. The number of virtual visits has more than doubled to almost 10.6 million, after slightly more than 4.1 million in the same period of the previous year. Because doctors wanted to keep potentially infected and at-risk people in their homes, they turned to telehealth services in greater numbers.
With Teladoc, however, it should be noted that this growth was firmly entrenched before the pandemic outbreak. The average sales growth between 2013 and 2019 averaged 75% per year.
The reason the ceiling is so high for Teladoc has to do with that universal benefits through virtual visits. They are much more convenient for the patient, and telehealth enables doctors to keep a better eye on chronically ill patients. For insurers, telemedicine can lead to better patient outcomes (that is, lower cost long-term care) and virtual visits are typically billed cheaper than office visits. It is a win-win endeavor across the healthcare system.
Teladoc also completed the acquisition of Livongo Health company for applied health signals Beginning of November. Livongo collects a lot of patient data and uses Artificial Intelligence (AI) to send tips and nudges to its members to help them lead healthier lives. Livongo has already enrolled over 500,000 diabetics in the US and will seek to expand into hypertension and weight management. In other words, Livongo’s services could be for large numbers of adults in the United States
Teladoc projects as one of the most exciting healthcare companies of the decade.
If high-growth small-cap stocks are more your thing, toss AMC Entertainment aside and say hello EverQuote ((NASDAQ: EVER).
EverQuote operates an online insurance marketplace. While the insurance industry spends an estimated $ 146 billion annually on advertising and distribution, only $ 5.6 billion is spent on digital ads, which is EverQuote’s specialty. But here’s the catch: digital editions are expected grow by 16% annually until 2024Total advertising and distribution spending increases 3% annually for pedestrians.
Much like how Teladoc’s platform is changing the face of healthcare, EverQuote’s online insurance market is makes life easier for consumers and their customers (the insurance companies). Consumers can compare prices quickly and efficiently. EverQuote’s marketplace provides insurers with motivated buyers, which means they are spending their advertising dollars with great efficiency. According to the company, around one in five buyers who requests a quote will make a policy purchase on the platform.
Although EverQuote makes most of its sales with auto insurers, it did Expansion into new industries through acquisitions in recent years. In addition to automatic coverage, it now offers consumers the ability to rate home, rental, life and health insurance on its platform. These new industries are growing much faster than auto and should help EverQuote maintain double digit growth.
As the company gobbles up insurance online ad shares and approaches recurring profitability, it has all of the catalysts needed to turn its investors into millionaires.
On a macro basis, there may not be a more compelling story this decade than cybersecurity. As more companies than ever move their presence online or to the cloud, the responsibility for protecting corporate and consumer data increasingly rests with nimble third-party providers like CrowdStrike. Once optional, cybersecurity has evolved into a service for basic needs.
What sets CrowdStrike apart is the superior cloud-native platform Falcon. This platform monitors more than 5 trillion signals per week and relies on AI to more intelligently identify potential threats before they become a problem. In addition, Falcon is more responsive to threats than local security solutions and, in many cases, can do so at a lower cost.
If that sounds like a bunch of praise, take a look at CrowdStrike’s operating results to prove its effectiveness. The company advertises a 98% retention rate and has delivered 12 consecutive quarters with dollar-based retention rates of at least 123% – which means that existing customers, on average, spend at least 23% more than in the same quarter last year. Additionally, 63% of customers now have at least four cloud module subscriptions, up from just 9% over four years ago.
The point is this: CrowdStrike’s customers are growing rapidly, and the cybersecurity specialist has little trouble scaling to meet their needs. CrowdStrike is can grow in double digits in the long term.
This article represents the opinion of the author who may disagree with the “official” referral position of a Motley Fool Premium Consulting Service. We are colorful! Questioning an investment thesis – including one of our own – helps us all think critically about investing and make decisions that will help us get smarter, happier, and richer.