Hello everyone and welcome back to investing with Anoaneta. In today’s blog, I’ll give my top 10 stocks for January 2021.
Some of these companies, we’ve already discussed here on my blog, while some of the others might be a bit new to you. Since we’ve got a lot to cover for today, I’ll try to be brief.
Today, we’re going to cover the following ten stocks:
- Dropbox (DBX)
- Zoom (ZM)
- Tattooed Chef (TTCF)
- Berkshire Hathaway (BRK.A)
- Appian (APPN)
- Fiverr (FVRR)
- Shopify (SHOP)
- Pinterest (PINS)
And If you stay with me till the end I will be giving a bonus tip, stay with me to find out which company I can share with you that is a worry to consider. Let’s dive right in!
Dropbox (NASDAQ: DBX)
Dropbox is a California-based company that provides cloud storage solutions to people worldwide. Under Drew Houston’s leadership (CEO & Founder) and Ajay Vashee (CFO & Founder), Dropbox managed to become one of the most valuable startups in the entire world.
Dropbox stock stats
- Current Price: $23.35 (today change -0.22 (-1%))
- PE Ratio:
- Market Cap: 9.328 B
- EPS: 0.1
Why do I like Dropbox stock?
I see a ton of potential in Dropbox stocks, and, especially with remote work gaining popularity as a result of the lockdowns, I believe that they will continue growing in the future. As a side-note, I don’t think that remote work will fade into obscurity once the restrictions are lifted.
People are now seeing the massive benefits and flexibility this can bring, both for the companies and their employees, and the trend is likely to continue post-lockdown.
Zoom (NASDAQ: ZM)
Zoom Communications is one of those companies that actually benefited from the pandemic in a big way. Under the leadership of CEO and founder Eric Yuan, Zoom Video Communications Inc. became one of the leading providers of voice over IP communications for 2020.
We’ve already discussed Zoom and its management on a couple of occasions, so I’ll be brief.
Zoom stock stats
- Current Price: $337.71 (today change +1.05 (+0.31%))
- PE Ratio: 238.78
- Market Cap: 98.275 B
- EPS: 1.44
Why do I like Zoom Stock?
Zoom stocks had an incredible year. During the lockdowns, they grew in popularity, dramatically increased their user base (they went up to 433,700 customers with 10 or more employees) and their numbers for the third quarter surpassed even the most optimistic expectations.
Analysts expected Zoom to hit about $693 million in revenue (316% increase) at roughly 0.92 a share of adjusted earnings (or a 10x growth). Instead, they scored 777.2 million dollars in revenue (up 367%) at $0.99 a share of adjusted earnings (an 11x increase).
I am very optimistic about this company’s future on the stock market, and I look forward to adding more zoom shares to my portfolio.
Tattooed Chef (NASDAQ: TTCF)
Tattooed Chef is shaping up to be the next big thing in the meal replacement industry. We recently had a look at Tattooed Chef, and while things haven’t had the time to change drastically since then, things are definitely looking up for Sam Galletti’s business.
Tattooed Chef stock stats
- Current Price: $23.94 (today change -0.41 (-1.74%))
- Market Cap: 1.532 B
Why I like Tattooed Chef Stock
The COVID pandemic might have slowed down the buzz around climate change and the overall push for sustainability, but the market for plant-based meat substitutes remains mostly untapped.
Personally, I expect to see Sam Galletti’s over 35 years of experience in the food industry, paying off big time.
Berkshire Hathaway (NYSE: BRK-B)
Berkshire Hathaway is Warren Buffett’s company. Now, as you all know, I’m a huge Buffett fan myself, and I’ve done a bunch of blogs talking about him and his company. So, my recommendation here shouldn’t come as a surprise.
- Current Price: 233.43 (today change: -2.13 (-0.91%)
- Market Cap: 549.381 B
- EPS: 22,232.21
Appian (NASDAQ: APPN)
Appian is a cloud computing software firm, based in Virginia, USA. Their services play a key role in mobile app development for businesses. With just over 20 years in business, Appian’s 1400 employees provide platform-as-a-service to companies on the international market. The company is currently headed by Matt Calkins – one of the four original founders, who managed to turn Appian from a small startup into one of the world’s most successful software IPOs for 2017.
Appian stock stats
- Current Price: 147.55 (today change: -3.97 (-2.61%)
- Market Cap: 10.648 B
- EPS: -0.56
In 2020, Appian had revenue growth of over 17% year to year, ending up at $77 million for Q3. Their cloud subscriptions went up by a staggering 40% with a revenue of $34 million (and a cloud subscription revenue retention rate of 115%!). Gross margin went up to 73%, up from 64% the previous year, and their cash revenue ended up at over $250 million.
Why I like Appian stock
Mobile devices are now the preferred way to access the internet for most users, and all pretty much all companies are turning to mobile applications. Even my cleaning business has its own mobile app, and we’ve been getting excellent results and a lot more engagement with it.
I expect to see mobile apps becoming the norm for all businesses in the near future, and this is exactly what Appian brings to the table. Add to this the fact that company founder and CEO Matt Calkins still owns over 40% of all Appian shares (a bit over 2.8 billion dollars at the moment) and that the company is still in its early chapters of development, and you’ve got yourself one incredibly promising business.
Fiverr (NYSE: FVRR)
Founded eleven years ago (in 2010), Fiverr is an online marketplace, where freelancers can offer their services for as little as $5 (hence the name). Or, that was the original marketed intent, at least. Today, the platform is home to numerous projects, some reaching well into the four digits.
The demand for professional services is growing rapidly by the minute, and the platform profits massively. Add to this the boost that the pandemic and lockdowns gave to digital services, and Fiverr turns into a really lucrative investment.
Fiverr stock stats
- Current Price: 232.19 (today change: -4.78 (-2.08%)
- Market Cap: 8.077 B
- PE Ratio: 734.35
- EPS: -2.29
During Q3 of 2020, Fiverr demonstrated revenue growth of 88% year-over-year. Their active buyer base increased by roughly 30% since the end of last year and the average spending per buyer went up by 15% (currently at $195). The management has also shifted its strategy to try and accommodate the growing demand of larger businesses, pressured by the lack of in-house staff during the lockdowns.
Why I like Fiverr stock
Fiverr is one of, if not the most popular online marketplace for digital services, right up there with freelancer.com and Upwork. However, the easy-to-use interface and a much lower entry barrier make it the go-to choice for most service providers.
And while Fiverr’s colossal revenue growth originally happened due to the lockdowns, it also earned them even more popularity and recognition as a global marketplace.
Shopify (NASDAQ: SHOP)
Shopify is a leading online e-commerce platform used by online stores and point-of-sale systems. The system allows a complete service suite with payments, marketing and shipping and engagement tools. If you’ve ever bought something from a website, you’ve most likely used the system already.
Shopify stock stats
- Current Price: 1,117.75 (today change: -23.72 (-2.00%)
- Market Cap: 145.744 B
- PE Ratio: 734.35
- EPS: 1.62
The founder and CEO of Shopify Tobi Lutke is a big believer in entrepreneurship and says that his goal is to help people change their lives for the better by starting their own business. As an entrepreneur myself, I find this message really admirable (and I also use Shopify for my own projects, of course).
Looking at the results that he’s been able to deliver by working towards achieving his mission, I can’t help but believe in the company’s future.
Pinterest (NYSE: PINS)
Pinterest is a social platform, used by people for sharing picture and by businesses for … SEO and advertisements.
Now, don’t get me wrong, their business side looks great, but the platform itself isn’t something that I personally use for non-commercial purposes. Then again, we are here to look at the financial side of things. And, on that front, Pinterest is looking up.
Pinterest stock stats
- Current Price: 71.70 (today change: -1.21 (-1.68%)
- Market Cap: 44.421B
- EPS: -0.60
Why I like Pinterest stock
Like most social networks, Pinterest profited from the lockdowns in a big way. When everyone was mostly stuck at home, they turned to the image-sharing platform for closure. Pinterest saw an average monthly user increase of 37% (totalling 422 million for Q3 2020) and a 58% increase in revenue ($433 million).
And while there certainly is an air of uncertainty around the platform (partly due to Facebook’s involvement and partly because there’s no way to tell if they will keep growing post-lockdown), I believe that Pinterest presents an excellent long-term investment opportunity.
I would like to say that we are reaching our end of the blog and for those that have stayed with me till the end, a Big Thank you and my bonus for you is….
Okta (NASDAQ: OKTA)
Okta is a cloud-native software company, specialised in identity and access management.
The lockdowns caused a huge increase in demand for competent cybersecurity implementations, and Okta was there to deliver. Since January 2018, Okta has managed to return over 700% for investors, and they’re just now getting started. Currently, the company is sitting at just over 9400 customers, and they are positioned in a market whit a very high demand and low supply.
- Current Price: 252.20 (today change: -1.99 (-0.79%)
- Market Cap: 32.77 B
- EPS: -1.92
For Q3 2020, Okta managed to gain over 400 new customers, including six contracts valued at over $5 million and twenty-one contracts in the one to five million range. They also recently opened a new office in Japan.
Why I like Okta stock
Okta estimates that the workforce identity total addressable market is around 30 billion dollars, while the customer identity market is about $25 billion. I expect to see some fantastic things from Okta, both in the near and in the distant future.
And, with this, we’ve finally reached the end of my top 10 stock suggestions for January 2021! Putting all of this together definitely took longer than that I expected (and I already made the list for my personal investments long before I sat to work on a blog), so I would really appreciate a comment or maybe even a share if you’ve enjoyed it!
Thank you all for sticking around until the end, and I’ll see you next time!
Recommended books for further reading:
- The Little Book of Common Sense Investing: The Only Way to Guarantee Your Fair Share of Stock Market Returns (Little Books. Big Profits
- The Warren Buffett Way
- How to Day Trade for a Living: A Beginner’s Guide to Trading Tools and Tactics, Money Management, Discipline and Trading Psychology
- Rule #1: The Simple Strategy for Successful Investing in Only 15 Minutes a Week
- Investing QuickStart Guide: The Simplified Beginner’s Guide to Successfully Navigating the Stock Market, Growing Your Wealth & Creating a Secure Financial Future
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