Daily Traders Edge

Stock Alert: These 3 Stocks Will Make You Richer In March

March 05
10:55 2021

The stock market defied the odds in 2020, staring down the coronavirus pandemic and still putting up solid gains. The S&P 500 climbed more than 16% last year, while the tech-heavy Nasdaq surged an even more impressive 44%. Technology stocks came into focus last year as the remote-work and stay-at-home trends highlighted the increasing demand for cloud computing, e-commerce, and social media.

For investors looking to strike it rich, finding the best performers in each of these high-growth categories can be a great place to start. Digging a little deeper and focusing on companies with the right combination of best-in-class offerings and large addressable markets can help unearth stocks with the best potential to boost your fortunes.

Let’s look at three businesses that meet these lofty criteria.

1. Twilio: Speaking to customers where they live

One of the key takeaways of 2020 is that businesses must be able to communicate with customers wherever they are. The digital transformation, which was already in full swing, actually accelerated, making this simple truth more imperative than ever. That’s where Twilio (NYSE:TWLO) comes in. The company provides the resources to embed customer communication tools into business software and apps, including phone calls, video, text messages, all without ever leaving the app.

Many consumers have used Twilio’s tools without even realizing it. The real-time messages you get from your food delivery service? The updates from your rideshare provider? The ability to reset a password within an app? How about in-app chats with customer service? If you’ve experienced any of those, there’s a pretty good chance it was underpinned by Twilio’s technology.

Twilio reported revenue that accelerated for the second successive quarter, closing out the year with a bang. Full-year revenue grew 55% year over year, helping push the company’s adjusted profit up 57%.

Client metrics were equally impressive. Twilio’s total active customer base closed out the year at 221,000, up 23%. Not only is the company attracting new businesses, but existing customers are also spending considerably more, as evidenced by Twilio’s dollar-based net expansion rate of 139%. Put another way, existing customers spent 39% more in 2020 than they did in 2019.

After its recent acquisition of Signal, Twilio increased the estimates for its growth opportunity. Management now believes the company’s total addressable market topped $62 billion last year and will grow to $87 billion by 2023. The company’s revenue clocked in at just $1.76 billion last year, illustrating the magnitude of the opportunity that remains.

Continue Reading at The Motley Fool

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