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Markets can be very difficult right now as investors weigh the impact of inflation and fears of a recession on business activity. But if you have $3,000 to invest in the stock market right now — money you’re not taking out of savings and don’t need to cover expenses — it might still be a good time to pick up stocks you’ve been meaning to buy and hold. for a long time.
Let’s take a look at these two stocks to consider putting at least a portion of your $3,000 investment into this month.
1. Fiverr: Invest in the global gig economy
According to a recent study by Statista, the global gig economy is on track to generate a total of $455 billion by 2023. To provide context for how fast this sector of the job market is growing, the total size of the gig economy is $348. In the year billion by 2021. Meanwhile, another report from Staffing Industry Analysts found that the global gig economy will generate a total of $5.4 trillion in revenue by 2021 alone.
And the gig economy is on track to see explosive growth in the near and long term. If you want to benefit from the growth, investing in companies that directly support this sector of the labor market is a good way. And as one of the top freelancing platforms in the world, Fiverr (F.V.R.R -3.74%) It is well positioned to take advantage of these trends.
In the most recent quarter, the company’s margin rose 200 basis points to 29.8% from a year earlier, and revenue rose 13%. Fiverr closed the quarter with 4.2 million active buyers, a 6% increase from the same quarter last year.
Not only does Fiverr receive a cut from transactions on the platform, but they’re also constantly increasing how much buyers spend on free services. Case in point: Fiverr reports that spend per buyer has increased 14 percent year-over-year.
Although the company was not profitable in the last quarter, management said: “When market conditions are worse than expected, when growth is expensive, rather than growing at any cost, we have decided to prioritize EBITDA and free cash flow, and accelerate the way down the road.” Our long-term target model.”
The company reported adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $4.6 million in the quarter, increasing its cash flow to $98.1 million.
As both companies and workers tighten their belts for fear of a global recession, the gig economy will benefit even more. For companies, the gig economy offers a huge opportunity to find the right talent without constantly hiring new employees. For workers, the gig economy can continue to provide many opportunities for companies to diversify their income streams.
Recession or not, the flexibility and freedom of time that comes with participating in the gig economy, combined with a wide variety of professional talent, should continue to attract both freelancers and the clients who hire them to the Fiverr platform. This makes a compelling argument to invest in Fiverr’s current valuation and capture its near-term volatility.
2. Airbnb: Invest in the future of travel
If you just look at the stock price, Airbnb (Father B 0.45%)Like many growth stocks, they haven’t exactly had a banner year. Shares are down 37% year to date. But for long-term investors focused on Airbnb’s business and its promising path ahead, now may be a prime time to take a position in the stock.
The pandemic was not an easy time for the company. Airbnb went public in December 2020 after a 30 percent drop in revenue for the year, with a net loss of up to $4.6 billion. The pandemic has made travel difficult worldwide. Although it has finally begun to recover, rampant inflation and fears of a recession have caused many consumers to pull back on rational spending.
With all this in mind, Airbnb has proven itself time and time again to be a comeback kid. In the year For the full year of 2021, Airbnb has grown its revenue by 25 percent from 2019. And while the company still posted a net loss for the year, it posted record net income of $55 million in the final quarter of 2021.
In the most recent quarter, Airbnb reported more than 103 million quarterly nights and experiences, the highest number in the company’s history. Revenue rose 58% year over year to $2.1 billion and was up 73% compared to the same quarter in 2019. It was Airbnb’s most profitable second quarter to date, with net income for the three months totaling $379 million. According to Ice, the company closed the quarter with nearly $10 billion in cash on its balance sheet.
Why is Airbnb’s recovery story so different from most travel stocks? Management attributes this to two key issues unique to Airbnb’s business model, citing the following in its second quarter report:
First, our business model is ideal. We have every kind of space almost everywhere, so no matter the travel changes, we can adapt. And regardless of the economic environment, our guests come to Airbnb because they can get great value and our hosts can earn extra income.
Second, we continuously innovate while maintaining focus and discipline. During the pandemic, we made many difficult choices to cut costs, making us a leaner and more focused company. We have maintained this discipline ever since.
Airbnb’s innovative business model, strong financials and determined leadership will lead to an exciting future for the company long after the current economic headwinds have died down. For investors with an investment horizon of at least three to five years, now may be a good time to buy this high-growth stock.
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