If you’re interested in the financial markets, you’re probably aware of the excellent performance the NASDAQ, SPX and DJI have seen along with several of the stocks in these leading indexes. It’s highly likely this surge has caught the attention of many younger investors looking for a place to generate gains. Here is a list of five stocks young people love to invest in, which you may want to analyze.
Amazon – AMZN
For several years, CEO Jeff Bezos continued to invest in Amazon’s infrastructure, building out warehouses and creating a logistical system that can be used to speed up the efficiency of package delivery to millions of its customers. This investment is finally paying off as Amazon has recently touched an all-time high near $3300. In 2019, the company surpassed Walmart as the world’s largest retailer, which has helped boost its revenues. With much of its infrastructure in place, the company should continue to dominate in its space.
Square – SQ
Square is another company with a roaring stock price in 2020. It provides point-of-sale and payment solutions throughout the world. Many of today’s younger investors utilize online apps to complete their financial transactions. Square offers a software app in this area known as Cash App, which has become a popular way to access the financial system and allow users to spend, store and send money. As one of the leaders in this industry, it has the edge required to dominate competitors that should keep the stock price trending higher.
Dropbox – DBX
Young people are familiar with tech stocks and like to invest in them due to their ability to escalate higher in price quickly. Dropbox is a tech company that is well-positioned in its industry to move higher in the future. While it’s not a tech giant, it’s used in about 180 countries as a top global collaboration platform. At the end of the first quarter in 2020, the company had over 600 million registered users. Businesses should continue to use this company’s service as a solution for storing documents in the cloud where they can share or back them up.
Tesla – TSLA
Elon Musk has proved several naysayers wrong in the electric car industry who thought he couldn’t mass-produce and sell an electric car to customers efficiently. Tesla has come out with four different models since its inception with price points for both budget-minded and performance-driven buyers. However, the real hidden gem with this company is its innovative battery technology. Tesla is also involved in the solar power industry, making Tesla more of an energy company than just an automobile seller.
Postmates is a company offering food delivery service in the United States. It’s preparing to distribute shares soon by participating in an IPO. When Postmates stock becomes tradable, it may provide an opportunity to take advantage of its growth. According to experts at Money Morning, “Postmates has become one of the most popular delivery apps, with a huge valuation of $2.4 billion.” Its delivery fee is on the inexpensive side, ranging between $.99 and $3.99. This makes their service an attractive option with individuals who want to experience the convenience of having food delivered.
When investing young, Shah Gilani, an expert from Money Morning suggests, “Those “too big to fail” type companies. Companies that are too important to the economy, and consumers in their space. Now, the way to manage your risk is not buying in all at once. Find the companies that are going to come back bigger and better than ever. Apply some of your capital there, maybe 20%. Don’t worry about them going up, you have plenty of time to buy into them. And if they go down once you’ve bought in, you can buy more at a bigger discount.”Finding and investing in companies that continue to grow their businesses and revenues can help you utilize stocks with higher valuation potential. Investing in one or more of these picks may provide this opportunity.