Ride the Pandemic Internet Wave Before Year-End


Dear Investors, 

It’s been a tumultuous year…

Many of us are happy to see 2020 come to an end.

The coronavirus and politics have dominated every news cycle, and we’re all the wearier for it.

Setting all that aside, there are investment opportunities to cash in on before the end of the year and ride out and benefit from the pandemic and coming recovery.

We’ve sourced out three excellent stocks to consider buying before the end of the year.

 Top Stock #3: Shopify (NYSE:SHOP)

This stock soared to $1134 a share in September and has settled recently to $918 as of last Friday. It has shown a 160% gain since 2019, and the stock has the potential to get back to $1000 and beyond.  

Shopify stands to benefit from the pandemic as more and more retailers transition to online stores, and even facilitate sales on social media storefronts. SHOP is currently rated second out of 35 in the Internet – Services industry, and the average analyst target price for the stock is $1,162.12, signaling it has a potential 30% upside.

 

Top Stock #2: Cloudfare, Inc. (NYSE:NET)

Cyber security is sure to be an ongoing concern as internet business expands. NET protects web applications, without the additional cost of hardware, software or code alterations. 

Many internet businesses have benefited from the pandemics force in driving internet commerce and Cloudfare has positioned itself well to prosper. NET has more than $300 million in revenue for the nine months ending September 30 of this year with an adjusted gross profit margin of 77.4%.

Cloudfare has a one-year price return of 300%, and is ranked third out of 23 in the Software – Security sector. 

 

Top Stock #1: Snapchat Inc. (NYSE:SNAP)

Again the pandemic has driven Snapchat Inc. (NYSE:SNAP) a social media platform focused on sending and receiving photos and videos to new heights. The platform is experiencing massive growth as it expands business overseas.

SNAP’s Rest of World daily active users (DAUs) exploded 43% to 87 million in the third quarter to represent 35% of total users and that’s excluding North America and Europe. India alone showed a 150% growth rate.

Most of SNAP’s revenue is generated in the United States though with average revenue per using bounding upward 46% to $5.49 in the third quarter compared to $1.43 in Europe and $0.95 for the rest of the world.  

 

Bottom Line: All three of these stocks have benefited from the pandemic, which shows no sign of easing at the moment.  Even with the advent of a vaccine on the horizon, these stocks may benefit from a fundamental shift in consumer behavior.  They may be very well positioned to grow even after we get a handle on the pandemic.  As always, we encourage you to do your due diligence before investing in any equity.

 

The BLI Staff

 

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