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Building wealth can be like baking a cake. It requires the right ingredients, the right recipe (or technique) and time to cook. With all these factors in place, even relatively modest investments can turn into a special treat. Think about it Nivea. If you had invested $3,000 in Nvidia stock 10 years ago, that total would have grown to $147,000 today.
Undoubtedly, there are stocks that could continue to double — and even beat — Nvidia’s comeback given enough time. Let’s look at two that I think can do this.
Image source: Getty Images
1. Alphabet
Alphabet (GOOG 2.36%) (GOOGL 2.39%)Google’s parent company is already a juggernaut. Its signature product — Google Search — is the world’s leading search engine, with an 84% market share.
Alphabet also houses key growth engines like YouTube and Google Cloud. These units help Alphabet’s double-digit revenue growth year over year, which is even more impressive when you consider the company generated $278 billion in revenue over the past 12 months.
Moreover, Wall Street expects Alphabet’s impressive growth to continue. Analysts said the company They expect it to record $324 billion in revenue by 2023, an increase of 12% compared to this year.
However, despite these positives, Alphabet shares have struggled this year. Shares are down 16% year-to-date. The weak first half of the year is to blame, as Nasdaq Composite In the year It gave up 30% of its value in the first six months of 2022.
However, investors would be wise to take advantage of this recent weakness. Alphabet shares now trade at a price-to-earnings ratio of just 22.6, below its three-year average of 28.3.
2. Airbnb
Airbnb (Father B 2.48%) It operates a rental marketplace app that connects guests and hosts. And while the concept behind Airbnb isn’t exactly new — connecting homeowners and renters — what sets the company apart is its passion for travel inspiration.
The Airbnb app doesn’t assume visitors know. where Or when is They travel. Like the sidewalk menu, it’s designed to satisfy appetites. As visitors add favorites to their wish lists, the algorithm highlights similar listings with open booking dates.
The result? Often, Airbnb guests get more than just a weekend; You get a long term lease. Over 45% of nights on Airbnb are now part of a stay of at least seven nights. Over 19% of bookings are for stays of 28 days or more.
And long-term rentals like this are great news for hosts. First, they ensure steady rental income, and second, hosts save time and money because there are fewer ‘restarts’ between stays.
Wall Street analysts certainly like Airbnb’s prospects. They expect the company to generate $8.3 billion in revenue this year, a 38% increase from 2021.
The stock trades at a price-to-sales ratio (P/S) of 11. That may sound high, but since it launched as a public company in late 2020, Airbnb’s average P/S ratio is 20.5. What’s more, the stock is down 26% year-to-date, giving investors a great opportunity to stock up on cheap stocks.
Susan Frey, an executive at Alphabet, is a member of the Motley Fool’s board of directors. Jake Lerch has positions in Airbnb, Inc., Alphabet (C shares) and Nvidia. He has a position in the Motley Fool and recommends Airbnb, Inc., Alphabet (A shares), Alphabet (C shares) and Nvidia. The Motley Fool has a disclosure policy.
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