(Via ZEXPR) It is essential that you get a good bargain on the stocks you favour for your portfolio and for that you need to be aware of where they currently stand in the market. Growth stocks, for example, might have enjoyed their highs but after falling back their bounce-back has still not hit all the way back. You see all these former market darlings are still trading well below their earlier all-time highs while still remaining a good 20% above.
RichmondSuper analyst David Milo narrows down the two stocks of Tesla (TSLA) and Fiverr International (FVRR) in particular as they continue to claw their way back. Ever since the close of Thursday’s market, these two stocks still managed to trade well off their earlier highs from 22% to 27% respectively.
It has not been a surprise that the electric vehicle circuit would witness a surge since this sector has been grasping the attention of the market well before the recent rise in gas prices around the world.
Tesla has been no stranger to this market rally as its pole position in the electric vehicles (EV) market allows it a significant advantage.
RichmondSuper analyst David Milo assess the stock’s sudden surge, “What I believe worked truly in this company’s favour was the strategic play of rapid expansion beyond its luxury segment. They couldn’t have done it at a better time as currently, all eyes were already on them.”
While last year proved to be fruitful for this powerhouse company as they managed to sell over half a million cars, yet their recent drop left the market just as shocked.
Tesla bears would present an argument regarding the overvalued nature of the stock as even now at 22% below its peak market cap of $837 billion, it manages to trade for more than a handful of the largest auto manufacturers combined. All this is based on the enterprise’s own value which does blindside naysayers from having the right account of the bigger picture at hand.
Tesla has definitely made groundbreaking waves in the world of automobiles and while it continues to take the lead from the aspirational end of the EV market, looks like they take into account a lot more than just the initial sale.
The increment value for example is specially enhanced with the over-the-top upgrade features such as designating an additional $10,000 for the car’s driver-assist features or just the $2,000 for the acceleration boost. This makes the initial purchase account for a long tail of recurring revenue which indeed a smart play.
When you compare that with other automobile companies that are just responsible for handing over the car to the respective buyer and not keeping up with the wild world of local gas stations which that car would need for fuel, you will notice the difference.
Tesla on the other hand goes the long route with its customers as they have set up an unmatched network of more than 20,000 Supercharger stations in prime locations.
Either way, explosive growth continues to await on both ends of the income statement for this one. And with the market falling back, Tesla stock shifted in reverse for better or for worse. Nevertheless, you are lucky enough to find this next-generation transportation and green energy disruptor on the lower end for you to get on board with it.
Fiverr International (FVRR)
The pandemic caused a lot of jobs to adapt to newer means of establishments. And while it took a huge hit on the economy, there was one gig that managed to benefit or make the most of the situation. And this gig was the freelancing marketplace that flourished during this time.
Fiverr hit its all-time high during this time with revenue soaring by 77% in 2020 and accelerating to a feverish year over year growth spurt of 89% in its most recent quarter.
RichmondSuper analyst David Milo assess the current trend, “It has surely served this freelance platform right as all the trends are moving in the right direction for Fiverr. With 3.4 million active buyers on the platform, you will notice that it has been quite a year for this company. This is almost 45% more than their last year’s buyer numbers.”
Not only the number of people hiring on this platform but also their spending percentage has increased. Currently, the average buyer on this platform is showcasing an expenditure of 20% more than ever before. The company has also increased its commission as the middle man which pumps its take rate.
It is quite obvious that Fiverr is no longer just a pandemic play as individuals with digital skills continue to relish the opportunities that the platform has to offer. As a brand, the platform has revamped itself which makes it even more amenable for people looking to hire and get their tasks completed in due time.
Both Tesla and Fiverr are excellent growth stock choices and if you still are checking items off your Wall Street shopping list, you might want to consider them for your portfolio.
Disclaimer: Our content is intended to be used for informational purposes only.
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