Freelancers, gamers, and fitness fanatics; this varied group presents a great option for those looking for high-flying growth stocks.
April is here and we can almost smell the BBQ in the air as summer approaches. But whilst we ride out the last of the spring showers, we have three top stocks to invest in this month for anyone looking to expand their portfolio. We have a varied collection of high-growth stocks to delve into this month, including a gaming platform, an interactive fitness company, and a freelance work platform.
Roblox (NYSE: RBLX) is a company that provides a platform for video-game developers to self-publish games, and for players to play and personally program those games should they wish. Essentially, the company provides a space for its users to experience a collection of more than 50 million peer-developed games. Although it went public early in March, the company has in fact been around since 2006, building a solid user base as it went.
The company has several revenue streams; sales of its in-game currency Robux, advertising deals, licensing agreements, as well as royalties. Most of the revenue it generates comes from the sale of Robux. Players can buy Robux on a one-off basis, or on a monthly subscription, the currency then allows them to customize their experiences and buy additional content. With regards to its other revenue streams, it has advertising deals with the likes of Disney and Lego, as well as licensing deals with Toys R us and Walmart, all of whom are benefiting from their exposure to Roblux’s predominantly young user base.
The company has seen its monthly active users go from 35 million to 150 million in just three years, with an estimated 33.4 million signing on each day. In 2020, it generated $990 million in revenue which is up 111% year-over-year (YoY). This is a newly public company with plenty of potential for any investor this April.
Serving 4.4 million members, Peloton (NASDAQ: PTON) is the world’s largest internet-based, interactive fitness platform. In addition to providing online classes, Peloton is also in the process of acquiring Precor Inc., which is one of the largest commercial fitness equipment providers in the world — with a large presence in the U.S. market. The acquisition will cost around $420 million.
Since then, Peloton has also acquired three other firms: Aiqudo Inc., Atlas Wearables Inc., and Otari, the three of whom bring together a range of software, hardware, and wearables technology. Peloton seems to be setting its sights on revolutionizing the fitness industry.
Peloton might not seem like much of an option right now as its share price has dipped by around 34% since its peak in February, but don’t expect it to bow to pressure too soon. There is plenty of potential, with Peloton smashing its last earnings call with revenue growth of 128% year-over-year (YoY) from $466.3 million to $1.06 billion and its earnings per share coming out at $0.18 versus the expected $0.09.
Yes, this company is experiencing a dip, but moving forward, the future will continue to look bright for Peloton as it builds up its business and range of services.
There has been an indisputable rise in freelancer works since the rise of digitalization, and Upwork (NASDAQ: UPWK) capitalizes off this as it serves to broker contracts between the employer and the work-seeking freelancers. This market has expanded since the start of the pandemic, as digital opportunities provide a cost-effective solution for companies trying to save money as well as for freelancers trying to earn extra cash during a period of economic volatility.
Upwork is now so popular that over 30% of the Fortune 100 companies advertise on Upwork to hire remote contractors — these are big-name companies such as Microsoft, General Electric, and GoDaddy.com. The benefits for both sides of the hiring process are numerous. For companies, it cuts down on time and resources needed to hire a new person, with a particular focus on the heavily reduced HR processes. For the freelancer, it is an easy way to get noticed, whilst being able to take on multiple projects at a time.
Up until last year, Upwork was losing money, but now, having broke even in 2020, it seems to be finally on a path to growth, especially as it grew the total worth of brokered contracts from $2 billion in 2019 to $2.5 billion in 2020. With people from more than 180 different countries using its service, Upwork is in a position to benefit hugely as the market for freelance work grows alongside the digital economy.
A MyWallSt subscription gives you access to over 100 market-beating stock picks and the research to back them up. Our analyst team post daily insights, subscriber-only podcasts and the headlines that move the market. Get your free trial now!
MyWallSt operates a full disclosure policy. MyWallSt staff currently holds long positions in companies mentioned above. Read our full disclosure policy here.