I kicked off the new year with a little stock shopping, something that I did (rather successfully) a year earlier. I initiated positions in four stocks on the first day of trading in 2020, and I figured I would get into why I think this collection of investments has a strong chance to beat the market in the year ahead.
I invested in Pinterest (NYSE:PINS), Luckin Coffee (NASDAQ:LK), Peloton (NASDAQ:PTON), and Dropbox (NASDAQ:DBX) last week. One thing that they all have in common is that they went public over the past two years, with all but one of them hitting the market in 2019. Investing in IPO stocks is risky, but I don’t mind taking chances for the right investments with that new-stock smell. Let’s go over why these four new stocks found their way into my portfolio.
Pinterest went public at $19 nine months ago, and that’s essentially where it is now. The visual search engine reaches 43% of the country’s internet users, but the juicy demographic angle here is that it also happens to reach 80% of the online moms who earn, spend, and influence buying decisions more than the country average.
Growth is impressive at Pinterest, now armed with 322 million monthly active users worldwide. Its audience has grown by 28% over the past year, but revenue soared 48% in its latest quarter as average revenue per user keeps climbing, given improving monetization trends.
Pinterest has also been boosting its revenue guidance with every passing quarter, going from initially targeting 40% to 43% growth in 2019 to what is now a forecast of 46% to 48% in top-line growth. Pinterest is stronger than it was at the time of its IPO, making it surprising to find it trading in the teens right now.
Continue reading at The Motley Fool to find out #3 and #4