Bitcoin (CRYPTO: BTC) stands as one of the best playing funds ever, and the market – leading cryptocurrency has accumulated around 700% over the past year to fetch around $ 54,000 per coin. beating. As amazing as the recent benefits of cryptocurrency are, there are stocks that could be far better than Bitcoin from now on – and there are companies that come out of their original public offerings (IPOs) are a good place to start if you are willing to take risks with the pursuit of explosive benefits.
With that in mind, we asked three Motley Fool partners to identify an IPO stock that they believe is ready to deliver Bitcoin-surpassing products from now on. Read on to see why they think PubMatic (NASDAQ: PUBM), QuantumScape (NYSE: QS), and what Coinbase has to offer is to post huge benefits.
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This advertising innovator could crush the market
Keith Noonan (PubMatic): Digital advertising has been instrumental in shaping the evolution of the internet, and the region still has a large runway for long-term growth. PubMatic is a programmed advertising expert that provides a software platform that helps increase monetization across devices, channels, and ad formats.
People are spending more time online than ever before, and it is likely that time spent in digital channels will continue to rise and encourage higher advertising costs to move to the internet. web and video distribution. Factor in continued growth for the global population and room for continued advertising focused on efficiency and PubMatic seems to have some favorable tails at its back.
Programmed advertising improves efficiency for both advertising buyers and publishers. Advertisers and organizations get better returns on their internships and publishers get better revenue. PubMatic plays the role of the medium, and the industry has a big role to play in expanding to make this dynamic possible.
The company managed to grow its sales by 64% year-over-year last year posting a total profit margin of nearly 80%. Based on the recent overall margins of the industry, PubMatic should go on to post impressive profits if it continues to expand its sales base.
With a market capitalization of around $ 2.4 billion, the company remains a relatively small player in the digital advertising space. However, that should make it easier for the industry to grow and earn on a reasonable basis, and the relatively small size of PubMatic could end up working to the benefit of investors.
QuantumScape has the potential to be an EV game changer
Jamal Carnette (QuantumScape): Appliance manufacturers are fast planning for a future full of electricity. Volkswagen recently announced an ambitious goal that electric vehicles (EVs) as total sales will rise to 70% in Europe and to 50% in the US and China by 2030. General Motors he also has ambitious plans, with Director Mary Barra pledging to be fully electric by 2035.
There is only one problem: Ultimately, it is consumers who make the decision and not automakers. To take wide scale, manufacturers need to address consumer concerns about the limitations of EVs, particularly battery technology.
Although the cost of manufacturing EV batteries has fallen by 90% since 2010, EV batteries are still more expensive than traditional gasoline engines. Other relevant concerns are long charge times, total battery life, and poor performance in subzero situations. These must be addressed before we reach the EV-inflection point.
Install QuantumScape. The company’s state-of-the-art solid-state lithium battery technology is superior to conventional batteries in every way. The technology allows for smaller and cheaper batteries that charge faster and last longer than traditional batteries. Volkswagen is on board in a significant way: It is a major investor, and VW battery technology chief Frank Blome is on board QuantumScape.
Sounds really good, right? Here’s the rub: QuantumScape’s revolutionary battery technology won’t be available until 2024. Competitors like it Panasonic (which currently supplies Tesla batteries), LG Chem, and China WORLD using inferior technology but the product is now available.
Admittedly, QuantumScape is for investors with high risk tolerance and long-term focus. Daily movements will be more than 10% common and volatility will be significantly higher than the market. Considering that we are comparing the company with Bitcoin (and you clicked on the article) it is very likely that this is a speculative investment and not the bulk of your investment portfolio.
The exchange titan
Joe Tenebruso (Coinbase): If you are deceived by the potential of Bitcoin but are not yet comfortable with investing directly in cryptocurrencies, consider Coinbase. Investors will soon have the opportunity to hold shares in the major U.S.-based cryptocurrency exchange after their upcoming market debut.
It is reported that Coinbase is planning a direct listing of its stock in the coming weeks. Direct listing allows company employees and early investors to sell shares directly to the public, without the need for an investment bank to decrypt the sale of the stock, as is done by traditional original public offering (IPO).
Bitcoin’s popularity and high price have become a resource for Coinbase. Digital asset exchange revenue more than doubled to $ 1.3 billion in 2020, driven by an increase in cryptocurrency trading numbers. Coinbase is also very profitable, with net revenues of $ 322 million last year.
Coinbase’s revenues and profits should continue to grow as more institutional and individual investors begin to allocate capital to Bitcoin and other crypto funds. Recently reputable investors like Paul Tudor Jones, Stanley Druckenmiller, and Bill Miller have expressed their bullish views on Bitcoin. In doing so, they have helped strengthen the legitimacy of Bitcoin among hedge funds, family offices, and pension funds that together manage trillions of dollars of assets.
If these powerful institutional investors decide to allocate just 1% of their capital to the crypto markets, the price of Bitcoin and other cryptocurrencies could rise. And it seems that the rise in trading numbers would also help drive Coinbase’s much higher revenue and profits.
This article represents the opinion of the writer, who may not agree with the “official” recommendation position of the Motley Fool chief consulting service. We are motley! Questioning an investment dissertation – even one of our own – helps us to think critically about investing and make decisions that will help us become softer, happier and richer.