Technology stocks were hammered this year. Some high-growth stocks plummeted as much as 90%. But plenty of stocks offer immense long-term potential, so how do you sift through the noise?
Here are three stocks that offer the opportunity to retire rich.
During Apple’s recent dip, many investors who lacked “conviction” sold their holdings, but not the Oracle of Omaha, Warren Buffett. He invested $600 million during the first quarter of 2022. In spite of the stock’s decline, the fundamentals remained stellar.
What makes the iPhone manufacturer so compelling to Buffett is customer loyalty because it translates to retention and enormous pricing power. Even in the face of the current macroeconomic headwinds, iPhone sales continue to drive sales, contributing to a record revenue of $83 billion in Q3 2022. Strong sales are expected to continue into 2023, following the release of the iPhone 14.
It would be easy to get lulled into thinking Apple is simply a hardware company, but it is also a software-as-a-service firm, generating recurring revenue from digital content, cloud storage, advertising products, and more. The interplay between Apple’s innovative products and services has created a self-sustaining ecosystem.
This tech giant also offers a modest 0.55% annual dividend yield but a dividend nonetheless — something most tech firms don’t.
If you shop online, you know how simple PayPal (PYPL) is to use. The payments company has helped bridge the gap between merchants and consumers for years, building its brand and offerings for over two decades. Its digital wallet and platform allow online shoppers to complete secure transactions. Moreover, it is continuously innovating to expand its product options. For example, UK residents can now make purchases using select cryptocurrencies.
For years, PayPal has reported impressive financials. In its 2021 annual report, net revenue was $25.4 billion, compared to $17.8 billion in 2019. Free cash flow also increased by $2 billion during this period, reaching $5.4 billion.
Active accounts reached 426 million, up 13% from 2020, and this upward trend has continued into the first half of 2022.
Year to date, shares of PYPL are down by over 50%, even though PayPal’s operating metrics are moving in the right direction. If you believe digital payments will continue to gain ground in the years ahead, this fintech pioneer is a no-brainer to buy and hold for years to come.
MercadoLibre (MELI) is the largest eCommerce player in Latin America. Although it’s a platform that offers an online marketplace for buyers and sellers, MercadolLibre isn’t a one-trick pony. It also hosts a payments platform, a consumer credit division, and a shipping logistics solution.
The company is essentially split into two divisions — commerce and fintech. This diversification is crucial to protecting shareholders.
If you’re looking for a growing company, MercadoLibre’s financials are a thing of beauty. Between 2019 and 2021, net revenue more than tripled, reaching $7.1 billion in 2021.
What’s even more impressive is that the company shifted its net loss of around $172 million in 2019 to a net profit of $83.3 million last year.
In 2022, MecroLibre’s gross merchandise volume hit a record high of over $8.5 billion, up 22% year over year. The company’s revenue of $2.6 billion also excited investors, as it rose 52% year over year. This figure beat analysts’ expectations by $80 million — and this is likely just the beginning.
In the past year, shares of MELI have plummeted by half. However, the company’s margins are healthy, and plenty of anticipated growth is left ahead, making it one of the top international stocks to buy now and hold for the next decade.