Social media, e-commerce, and game development companies; we have a few stocks that will give your portfolio a nice boost over the next year.
Jan. 18, 2021
With many of us needing a bit of a boost this year, we thought it would be a good idea to look at a few stocks that have high growth potential for the coming months. So, without further ado, here are 3 high growth stocks to not only boost your portfolio but boost your mood in 2021.
Pinterest
Pinterest (NYSE: PINS) is not just a popular company with millennials, but it appeals to a broad range of people from different generations. It provides the perfect platform to save useful ideas and to experiment with creative mood boards and pin color schemes for that new bathroom you have been dreaming of. Not only is it a popular company for all ages, but its stock has grown a whopping 550% since 2020's March low of just $10 per share.
In its most recent earnings report, Pinterest reported growth in its monthly active users (MAUs) by 37% year-over-year (YoY) to 442 million. It also reported a 58% increase in revenue to $443 million for the quarter. This company, despite being a form of social media, has a clean record with regards to scandal, having managed to stay out of the political and privacy issues that have plagued other social media platforms over the past few years.
With no debt and a predicted revenue income of $1.5 billion for its fiscal year, 2020 Pinterest is expected to see revenue grow to $3.5 billion by 2023. With this in mind, this stock might be worth pinning to the top of your list.
Sea Limited
There is a lot to say about this high growth stock at the moment. It has been called the 'Mercado Libre' of Southeast Asia and it is a stock that we very much like here at MyWallSt. Sea Limited (NYSE: SE) saw a fantastic 2020 as its stock grew 391% over the course of the year.
One might question whether it is prudent to buy shares now when it has already grown so much. However, with its recent win of a coveted Singapore full banking retail license, its financial sector, Sea Money, will be looking to expand as it boosts profits and bolsters its overall e-commerce sector. Indeed, it has wasted no time in this area as it is now moving forward with an acquisition of Indonesian Bank BKE.
Furthermore, Sea Limited is the parent company of Garena, the well-known gaming company that brought out the popular 'Free Fire' game -- which in August 2020 hit over 100 million daily active users (DAUs), making it the most popular Battle-Royale title in the world. This company certainly has goals to achieve in the next few years, and I don't imagine it will let anything get in its way.
Unity Software
Unity Software (NYSE: U) is an integral part of the digital entertainment sector as it provides many companies with the tools needed to develop video games. This is a high-performing market and Unity has a very large total addressable market -- estimated at $29 billion --meaning that it has lots of room for long-term growth.
Unity Software IPO'd last September with a market valuation of $13.6 billion. Its market cap currently sits at around $40 billion, whilst its share price has increased by around 117%. This is likely to increase as Unity Software is used for around 50% of all PC, mobile, and console games. Currently, 94 out of the top 100 game developers in the world are Unity customers.
Unity's 2020 saw impressive results with its revenue rise 42% over the course of the year, plus an increase of 44% YoY to $552 million for the first 9 months of 2020. Its third-quarter also saw a net expansion rate increase from 132% in the prior year to 144%. With around 44% more revenue being generated from its customers, Unity is proving to be a great company for client retention as well as increasing the number of services it can offer to existing clients.
This stock is looking ripe for high growth in 2021 as an already established market leader. With its impressive revenue results, investors should be using this chance to buy its stock whilst it sits at a more affordable price range.
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MyWallSt operates a full disclosure policy. MyWallSt staff currently holds long positions in companies mentioned above. Read our full disclosure policy here.
