Investors that were amongst the earliest to hold a sizeable amount of stock for Amazon Inc. (NASDAQ: AMZN) presently find themselves as millionaires, owing to its epic rise in the last decades. Their story reflects a dream scenario for most long-term investors that aim to hit gold by buying and holding a similar stock. Although in hindsight, it remains near impossible to distinguish between stocks that can rise to the top, against the ordinary. Finding the next Amazon is not an easy venture, especially considering its rise of 200,000% from its IPO to the end of 2020. Despite the challenges of investment strategies aimed toward this outcome, stocks do show signs of high promise that are worth betting on. If one holds a sizeable portfolio of such high-potential stocks, the probability of succeeding rises significantly. In this spirit, we present 7 stocks that could potentially repeat an Amazon-inspired success story.
In trying to locate the next Amazon, perhaps the smartest approach would be to find a company that most closely follows the Amazon business model. This goes to the Chinese retail and supply chain tech company, JD.com (NASDAQ: JD). JD is often labeled as the ‘Amazon of China’ by analysts, given a similar approach of holding then selling inventory through its eCommerce channels. The company is further investing billions in cutting-edge supply chain improvements, which are sure to deliver its rocketing growth.
Although JD remains second behind the e-commerce giant Alibaba Group (NYSE: BABA), its diversification into other business areas tremendously boosts its upside potential. For instance, its strategic collaboration with Walmart Inc (NYSE: WMT) works to propel its standing in the brick-and-mortar domain. Offline ambitions in an era defined by a wider digital transition may seem questionable to some. However, JD is clearly working towards diversifying its business streams and reaping synergistic benefits. Its advancements in AI and cloud technologies further hint at the surging growth trajectory that JD is likely to rise by, in the long-term future.
Pinterest Inc (NYSE: PINS) is a company that has had its ups and downs. The company operates a social media platform that labels itself as a “visual discovery engine”, allowing its users to browse through images posted on the website. At present, the company stands as one of the worst hit in the macroeconomic headwinds that brought down the entire market into a bear category. PINS trades at a price 75% below that of 12 months ago. Despite this, however, those with foresight would think twice before tossing aside PINS as the next Amazon in the making.
Amazon had faced its fair share of challenges in the past. Giants like Apple Inc (NASDAQ: AAPL) even faced bankruptcy before conquering the markets. In comparison, Pinterest seems far safer, despite market circumstances. From a business standpoint, the company continues stellar progress with its revenue climbing 18% in its first quarter, on a year-on-year basis. Even more promising is its venture into social commerce, which remains a unique concept, yet exceptionally revolutionary. Its downward trend over the last year only adds to this high-promise stock’s upward potential.
If there’s one aspect that turns an ordinary stock into a legendary one, it’s the degree of innovation that defines its business approach. This was very much the case for Amazon, which had brought on disruptive innovation, and made an e-commerce breakthrough. Similarly, Opendoor Technologies Inc. (NASDAQ: OPEN) is a true innovator in the real estate domain. It has combined the strengths of digital space and e-commerce with that of real estate. The company is on its way to achieving an undisputed leadership position of its market, especially after the failure of its rival, Zillow, in 2021.
Many analysts have pointed out that Opendoor stands in a position to become the ”new normal” in the digital real estate space. If the company manages to overcome present headwinds, then there is little stopping it from becoming the Amazon of the digital real estate domain.
Jumia Technologies AG
We turn our sights to a place where most would not expect the next Amazon to emerge from. We look towards Africa, where the emerging e-commerce giant, Jumia Technologies AG (NYSE: JMIA) has been the center of attention amongst bulls. The company’s stock price shows a wild roller coaster of ups and downs. Furthermore, e-commerce in Africa is far more complicated than the markets in Europe, North America and Asia. Despite this however, Jumia holds the potential to be a true gamechanger.
Jumia is working towards building a digital platform to connect buyers and sellers in the African markets. It is a pioneer in its realm but is well positioned to sky-rocket with the young African population, and their internet access. The continent holds a population of above one billion, which remains almost entirely untapped. With no competitors to its scale, JMIA is evidently sitting on a gold mine.
Square Inc (NYSE: SQ) takes a unique approach to payment processing, one that is defined entirely by a futuristic outlook. It takes a flexible approach through its various payment platforms, allowing it to dynamically restructure itself to future market shifts. Its Cash App platform, which is the company’s biggest revenue earner, allows users to trade Bitcoin with each other. Many have pointed out that Square could be an entirely different company in the future, one that is structured completely by how the market will look. Few companies hold this inherent capability to remain flexible to future changes.
Each of Square’s various business segments continues to see stellar growth, and will likely do so as its services become more mainstream. Payroll services, gift cards, business loans, and online checkouts continue to gain traction. Yet the possibilities remain limitless for the future to make it the next amazon.
We turn our attention next to the star digital streaming player, Roku inc. (NASDAQ: ROKU). Over the years, despite its small size, Roku has established itself as a worthy competitor to the giant, Netflix. Netflix, which is well past its glory days, has many doubting its future capability. Bulls are instead turning towards Roku, the innovation of which has significantly boosted its upside potential. The company capitalizes upon the mass transition away from cable TV, and toward digital spaces. It offers a device stick to be plugged into television sets, where customers can access thousands of streamable films and television series.
As television becomes obsolete, many players have risen to the occasion of attempting to fill the void with digital streaming. Despite the opportunity, many continue to face a set of hard challenges. The most significant example is that of Netflix, which continues to see its userbase dwindle. Password-sharing, migration to other platforms, and digital piracy have all contributed to these worsening conditions. Roku, on the other hand, uses multiple innovative tools to avoid these challenges in a sustainable manner. An example is its multiple streaming facility which can be accessed within a single location. The result is a loyal subscription base, which continues to climb in an environment where competitors are failing to retain, let alone grow customers.
Workday Inc. (NASDAQ: WDAY) is another star player catching the attention of market participants. Workday is an enterprise cloud applications provider, with offerings that meet the needs of countless industries and backgrounds. With its involvement in financial services, healthcare, media, education, and government, among many more, WDAY offers services across the board.
The company’s Human Resource application in particular has caused substantial growth, with the stock soaring significantly in recent years. Few HR service providers offer as wide an analytics-based application to clients, yet Workday achieves exactly this. Through the use of PaaS (platform-as-a-service), the company has substantially enhanced its upside potential within the global markets.
With this complete offering in its enterprise services, Workday could truly grow big. As Amazon saw a rocketing climb amongst retail customers, Workday could potentially see the same popularity among corporate clients, if it plays its cards right.
Looking for the next Amazon stock, which would result in one’s portfolio turning into a fortune is no easy task. However, looking at the trend taken by previous winners, we get a sense of which indicators to look out for, and which to overlook. The stocks presented in this article each offer unique inherent strengths and significant opportunities to take off. Buying these stocks now, and holding them for the long term could yield a massive turnaround. The potential for growth could possibly be as tremendous as it had been in the case of Amazon.