20 Stocks To Consider From A Global High-Growth Universe
Summary
- Here's a pool of 20 high-growth stocks that are worth considering going forward as potential portfolio additions in no particular order.
- I present 5 stocks each from 4 big categories: Consumer Internet, Software Transformation, Fintech, and Energy Transformation.
- Look beyond the current risk-off and growth selloff situation to identify long-term alpha opportunities in the high-growth space. Valuations have compressed significantly since February highs.
Introduction
With the recent high-growth sell-off, tech sector rotation, and some personal portfolio pain, I thought I'd share 20 promising stocks across a global universe that are currently holding my attention; some of them are in my portfolio, and others are shortlisted potentials pending further research. After all, these businesses have gotten a lot cheaper on a fundamental basis compared to February highs, and are experiencing about 20-30% drawdowns. This puts many of them back in November/December 2020 price territory, though I'm guessing that investors will be looking to use the correction for buy-the-dip opportunities for risk-on plays. With that in mind, I've prepared a multi-cuisine buffet at your service.
The businesses below have more than a few ingredients for long-term success, offer differentiated products/services, have viciously scalable sales models, and are riding secular growth trends that are here to stay and are seemingly inevitable: Streaming, Cloud Computing, Digital Payments, Solar Adoption, E-Commerce, E-Sports, and more. While valuations are expensive based on traditional comparable metrics, durable growth (or hyper-growth) over a long-term horizon can more than a cover for multiple compression and deliver alpha. Not all these businesses might win, and differentiating the cream of the crop takes a lot more research and work, of course. Therefore, think of this as simply a list worth investigating.
The businesses below are domiciled in multiple geographies and divided across 4 categories: Consumer Internet, Software Transformation, Fintech, and Energy Transformation. For every stock, I've included relevant metrics that I think are useful in a table, followed by charts that show price action and sales multiples history. Sales multiples include both "last twelve months"/"LTM" and "next twelve months"/"NTM" so that you can compare how cheap or expensive these companies are relative to themselves from a few months ago. NTM Sales are forward-looking forecasts derived from analyst consensus on forward sales. All this helps put valuations in some more rational context accounting for high-growth. Finally, I've provided a small descriptive paragraph that introduces each business, giving a quick overview of what exactly they do, and why they might be worth a second look. Without further ado, and in no particular order...
The pandemic accelerated the shift to digital consumption by a few years and it is unlikely we're going back to the old way of doing things. Within the broader digital consumption universe, a few growth trends are moving faster than others like programmatic television advertising, and emerging market digital consumption.
#1 Roku
Streaming Platform, Programmatic Advertising | USA, Global
| Ticker | Share Price | Enterprise Value | LTM Gross Margin | LTM FCF Margin | LTM Revenue Growth | NTM Revenue Growth | LTM EV/S | NTM EV/S |
| ROKU | $331.90 | $42.0B | 45.4% | 3.8% | 57.5% | 43.0% | 23.6x | 16.5x |
Raw data and charts from Koyfin, Author Calculations
Roku isn't just a hardware company, and it isn't just an operating system for your TV either. It has transformed into a major gatekeeper of streaming channels and television advertising to millions of households. Beneath the surface, the company is backed with sophisticated ad tech, an advertising marketplace, and a host of solutions for marketers, streaming content publishers, and of course viewers. A tsunami of television advertising spend is washing over streaming entertainment and Roku stands to benefit given its reach, solutions, and viewer base. Eventually, all TV advertising is going to go streaming and programmatic, and Roku is one of the finest expressions of this trend. Back under $350, it's seriously worth a look going long in my opinion.
#2 Sea Group
Gaming/E-Commerce/Fintech | Southeast Asia, Global
| Ticker | Share Price | Enterprise Value | LTM Gross Margin | LTM FCF Margin | LTM Revenue Growth | NTM Revenue Growth | LTM EV/S | NTM EV/S |
| SE | $236.45 | $121.0B | 30.8% | 13.57% | 101.1% | 78.8% | 26.7x | 14.9x |
Raw data and charts from Koyfin, Author Calculations
Sea Group is a three-headed growth monster taking on digital consumption in Southeast Asia and beyond. Its most mature vertical is its gaming division, Garena, which operates a surprisingly sticky mobile game called "Free Fire" that's the #1 mobile game across a chunk of the world's population (particularly emerging markets). The second division is Shopee, the #1 e-commerce player in the region serving about 6 Asian countries with a total population of over 600 million people and more recently, Latin America. The newest division is "digital financial services" and the business is looking to go big on all Fintech. While multiples may seem high, this has been one of the most perpetually scalable, ambitious businesses I've had the pleasure of investing in. Growth doesn't seem to be slowing down much as there's still a much higher TAM to grow into. It is also the undisputed leader in e-commerce in the region. One for the long-term.
#3 CuriosityStream
Streaming, Fact-Based Entertainment | USA Global
| Ticker | Share Price | Enterprise Value | LTM Gross Margin | LTM FCF Margin | LTM Revenue Growth | NTM Revenue Growth | LTM EV/S | NTM EV/S |
| CURI | $13.38 | $639.3M | 61.1% | -117% | 119.8% | 79.1% | 19.8x | 11.1x |
Raw data and charts from Koyfin, Author Calculations
Founded by the same guy who also founded Discovery Channel, CuriosityStream is a high-growth opportunity executing on becoming a leading channel in fact-based entertainment for the streaming world. The team is spending a lot of cash on sales and marketing, though they have high visibility on their forward revenue for FY2021 and are almost certain to beat guidance in my opinion. It goes without saying that current profitability is terrible, though this is a <1B company and has a reasonable probability of hyper-growing substantially for a multi-year period. It's a very early stage in its lifecycle as a public market company; and offers high risk, high reward.
#4 Pinduoduo
Diversified E-Commerce, Agricultural Products | China
| Ticker | Share Price | Enterprise Value | LTM Gross Margin | LTM FCF Margin | LTM Revenue Growth | NTM Revenue Growth | LTM EV/S | NTM EV/S |
| PDD | $143.93 | $180B | 67.6% | 15.1% | 97.4% yoy | 71.0% | 20.1x | 11.8x |
Raw data and charts from Koyfin, Author Calculations
The country's largest mobile-only marketplace catered towards agricultural products; it connects consumers directly with farmers, removing middlemen distributors (aha! margins). They've leveraged their grocery advantage to now expand into other areas of e-commerce and have spun shopping experiences with social media aspects to create a highly engaging platform. Hyper-growth top-line with more market to capture. While growth is decelerating, sales multiples have snapped back to October numbers.
#5 Carvana
Internet-scale car dealership, Specialty E-Commerce | USA
| Ticker | Share Price | Enterprise Value | LTM Gross Margin | LTM Net Margin | LTM Revenue Growth | NTM Revenue Growth | LTM EV/S | NTM EV/S |
| CVNA | $265.32 | $47.1B | 14.3% | -3.1% | 41.8% yoy | 56.5% yoy | 4.1x | 2.6x |
Raw data and charts from Koyfin, Author Calculations
Carvana has applied internet scale to used car dealerships and car financing. With big-scale and tech-heavy operations, they're often able to offer better deals, a wider variety of options, and efficient services compared to the fragmented and disparate network of car dealerships in the US. This is a company that's moat strengthens with further scale and there's a lot of room to keep going. Note that this is a low Gross Margin company (~14%) so sales multiples aren't nearly as cheap as they might appear. A quick estimate of NTM EV/GP will roughly be ~19x. Then again, the market is there for the taking if business execution keeps up.
SaaS is complex, crowded, and has likely been overfunded by the private markets, leading to too many that will likely get disrupted by the next cohort. Here are a few that are a bit more promising in my opinion. I tend to emphasize tech leadership, differentiated solutions, and durable growth rather than negative cash-flow induced customer acquisition that might not work over the long run. I like odd ducks when it comes to this particular space because the stranger they are while adding value to their users, the less likely someone else has done a similar business that can hurt any moat.
#6 Asana
Project Management Software | US, Global
| Ticker | Share Price | Enterprise Value | LTM Gross Margin | LTM FCF Margin | LTM Revenue Growth | NTM Revenue Growth | LTM EV/S | NTM EV/S |
| ASAN | $30.81 | $5.2B | 87.3% | -39.9% | 59.2% yoy | 36.8% yoy | 23.0x | 16.8x |
Raw data and charts from Koyfin, Author Calculations
Founded by Dustin Moskovitz, co-founder of Facebook, Asana offers project management software as a service (PM-SaaS). Think of their platform as a digital complement to the way project management is done. As a relatively non-specific, UX based-SaaS, Asana has the potential to scale across any organization where project management is involved. While the Slack-like software category might induce some scepticism investors, Asana's customers love the products and find that their software becomes central to the way they work. Ultimately it isn't about technical excellence but more about redefining user habits into a repeatable process that then becomes sticky and an eventual industry standard. Ask Adobe about that. Cash-burn could be a lot better, but huge market opportunity across every industry.
#7 Dynatrace
Observability Software, Digital Transformation | USA, Global
| Ticker | Share Price | Enterprise Value | LTM Gross Margin | LTM FCF Margin | LTM Revenue Growth | NTM Revenue Growth | LTM EV/S | NTM EV/S |
| DT | $49.55 | $14.2B | 83.6% | 28.6% | 28.6% yoy | 24.9% yoy | 21.6x | 17.3x |
Raw data and charts from Koyfin, Author Calculations
Dynatrace is seemingly best-of-breed in the Observability software category. Install the platform and it supercharges your understanding of your full IT stack through tracing and monitoring bits of data across your applications, infrastructure, logs, and more. That intelligence gained unlocks immense potential for improving enterprise operations, security, analytics, decision-making, customer experiences, and more. By going closer to all the data, implementing proprietary AI, and tackling adjacent industry solutions, Dynatrace is approaching digital transformation from a first-principles unifying approach. Strong moat, great profitability, and chances for accelerated 2021 growth in my view.
#8 Palantir
Intelligence Software, Data Science & AI | USA, Global
| Ticker | Share Price | Enterprise Value | LTM Gross Margin | LTM FCF Margin | LTM Revenue Growth | NTM Revenue Growth | LTM EV/S | NTM EV/S |
| PLTR | 23.07 | $40.5B | 67.7% | -53% | 47.2% | 33.5% | 36.7x | 27.5x |
Raw data and charts from Koyfin, Author Calculations
Developing original approaches to doing things take time, and those that pave the way get rewarded big if they do win. Blending artificial intelligence with human interfaces to solve incredibly difficult problems, to rethinking how software should simply work within an organization, Palantir is one of a kind and a contrarian's software business. The technology enthusiast in me battled the financial analyst to eventually win and add this to my portfolio. This is one to deeply dive into and think about for a truly long-term horizon.
#9 Agora Inc
Next-Gen Video Platform APIs | China, Global
| Ticker | Share Price | Enterprise Value | LTM Gross Margin | LTM FCF Margin | LTM Revenue Growth | NTM Revenue Growth | LTM EV/S | NTM EV/S |
| API | $53.72 | $5.6B | 64.7% | -7.9% | 107.3% | 36.4% | 45.1x | 33.1x |
Raw data and charts from Koyfin, Author Calculations
We know that Zoom created an empire on frictionless video communication. Think about it if that industry-leading speedy tech was packaged into an API and sold to developers, letting them do whatever they wanted. What if customer service goes all-video or new viral social media apps take form from this. Agora provides the backbone for sophisticated low-latency video APIs, and the opportunities are immense. Recent speculation has narrowed down one of their customers to Clubhouse, though management passed no comment on any specific customers in their last earnings call. Growth appears conservative given recent trends.
#10 Skillz
Software Platform Bridging Gaming & Esports | USA, Global
| Ticker | Share Price | Enterprise Value | LTM Gross Margin | LTM FCF Margin | LTM Revenue Growth | NTM Revenue Growth | LTM EV/S | NTM EV/S |
| SKLZ | $18.75 | $7.0B | 94.7% | -10.5% | 92.0% | 60.7% | 30.4x | 18.9x |
Raw data and charts from Koyfin, Author Calculations
Skillz is the odd one out in this group as the company doesn't do enterprise SaaS; it instead offers a platform for game developers to turn their mobile games into a multi-user competitive experience, bridging the gap between regular games and E-Sports. E-Sports adoption has been rapid and has replaced more traditional forms of entertainment and sports, particularly for younger demographics. High risk, high reward stock. One major risk worth noting is that the company gets most of their revenues from only a handful of developers and their hit games. The opposing view could be that as long as they keep capturing the market in developer numbers, it's likely that a fair percentage of new competitive mobile games that do trend to the top charts will happen to use Skillz. With that in mind, I expect volatility to be particularly nasty as financial results might not form a smooth and predictable curve.
Payments, digital banking, loans and more (haven't quite explored blockchain/crypto yet). Take any industry that is fragmented and features low net-promoter scores across the board. That's an industry ripe for disruption. Consumer financial services as a category fit that description quite neatly, and the results we've seen over the past decade have been staggering. Every aspect of consumer-related financial services has some Fintech alternative now.
#11 PagSeguro Digital
Payments, Diversified Fintech | Brazil, LatAm
| Ticker | Share Price | Enterprise Value | LTM Gross Margin | LTM Net Margin | LTM Revenue Growth | NTM Revenue Growth | LTM EV/S | NTM EV/S |
| PAGS | $48.53 | $15.5B | NA | 18.9% | 19.4%* yoy | 46%* yoy | 13.0x* | 8.9x |
Raw data and charts from Koyfin, Author Calculations
*LTM sales metrics were sourced from Pagseguro earnings releases in BRL and converted to USD to account for database errors on historically currency translations. LTM EV/S was calculated thus forth while NTM metrics were directly sourced from Koyfin.
PagSeguro is one of the early companies that became a market leader for app-based digital payments within Brazil. For a country where most people relied on cash for transactions, this was huge. Their business is now transforming into a full-fledged digital bank with multiple verticals by leveraging their existing customer base consisting of millions of consumers and micro-merchants. Growth has recovered well from the pandemic, with Sales recently accelerating at >40%yoy with an impressive Net Margin of ~20%. While some may write PagSeguro off as just a bank, I say they're growing like a viral tech company with yet a large market opportunity. The current valuation multiples don't do it justice.
#12 Square
Diversified Fintech, Software For Small Businesses | USA
| Ticker | Share Price | Enterprise Value | LTM Gross Margin | LTM Net Margin | LTM Revenue Growth | NTM Revenue Growth | LTM EV/S | NTM EV/S |
| SQ | $229.51 | $103B | 28.90% | 2.24% | 101.5% yoy | 49.3% yoy | 10.9 | 7.3x |
Raw data and charts from Koyfin, Author Calculations
Square, or the "Willy Wonka of Financial Services", has an undefined boundary on what they can build and the problems they can solve. The company has two thriving ecosystems of services: "Seller", & "Cash App". The Seller ecosystem offers financial services, payments, and software-as-a-service for micro-merchants and small and medium businesses within the US. The "Cash App" ecosystem is quickly turning into a consumer financial services super app with payments, card offerings, and stock trading built right into a single app. Growth is on fire, and even at its current valuations, I think there's further upside potential over the long term. (Low Gross Margin; NTM EV/GP is ~25x).
#13 Afterpay
Buy Now, Pay Later | Australia, Global
| Ticker | Share Price | Enterprise Value | LTM Gross Margin | LTM Net Margin | LTM Revenue Growth | NTM Revenue Growth | LTM EV/S | NTM EV/S |
| OTCMKTS: OTCPK:AFTPY ASX: APT | AFTPY: $80.58 APT: 105.52 AUD | $22.7B | 71.8% | -10.0% | 115.2% yoy | 86.6% yoy | 44.4x | 23.8x |
Raw data and charts from Koyfin, Author Calculations
Afterpay is a leading player in the "Buy Now, Pay Later" category of emerging FinTech. It literally allows consumers to buy now, pay later across a set number of instalments with transparent fees at thousands of merchants. Australia bred, operations have scaled globally across ANZ, UK, and the US. As you might have guessed, this business is going after credit cards and all the opacity and confusion created by credit card fees. Still scaling in hyper-growth mode and expected to continue doing so going by consensus estimates.
#14 Affirm
Buy Now, Pay Later | USA, Global
| Ticker | Share Price | Enterprise Value | LTM Gross Margin* | LTM Net Margin | LTM Revenue Growth | NTM Revenue Growth | LTM EV/S | NTM EV/S |
| AFRM | $71.45 | $22.7B | 34.70%* | -15% | NA; 57%yoy last Q | 34.6% yoy | 31.1x | 23.1x |
Raw data and charts from Koyfin, Author Calculations
*Gross margins are not directly comparable between Affirm and Afterpay as accounting policies for Australia and the US might cause certain costs/expenses to be moved above or below any gross margin line.
Affirm recently went public and also operates in the BNPL space. Affirm does things a bit differently by offering scheduled payments with varying options on instalments. While they're not expansive as Afterpay in their selection of merchants, the company is still worth a look as the sheer market opportunity leaves room to thrive for multiple players in the coming years before the category fills up its market. The appeal of BNPL over credit cards to consumers is undeniable and the BNPL business models so far seem to work at scale.
#15 StoneCo
Payments, Diversified Fintech & Software | Brazil, LatAm
| Ticker | Share Price | Enterprise Value | LTM Gross Margin | LTM Net Margin | LTM Revenue Growth | NTM Revenue Growth | LTM EV/S | NTM EV/S |
| STNE | $64.22 | $19.0B | NA | 25.2% | 28.9%* | 68.9% | 32.6x | 19.3x |
Raw data and charts from Koyfin, Author Calculations
*LTM sales metrics were sourced from StoneCo earnings releases in BRL and converted to USD to account for some database errors on historical currency translations. LTM EV/S was calculated thus forth while NTM metrics were directly sourced from Koyfin.
StoneCo is another Brazilian payments company that offers point sales solutions, hardware, and software for small and medium businesses. Their products are more comparable to Square's Seller ecosystem. Compared to PagSeguro, StoneCo has a larger online presence and targets larger businesses compared to the more-micro merchant focused environment of Pagseguro. Payment Volumes channelled through Stone have surged during the pandemic and the company is going beyond payments into other verticals. Multiples were a bit expensive, though the recent drawdown makes the company a more reasonable consideration. Pandemic affected take rates, and general financial performance, though growth has raced forward in recent months.
Electric Vehicles have been all the rage but I personally found it extremely tricky to comment on how the EV landscape will truly evolve. Renewable energy (particularly solar), and battery production offer a less complicated hunting ground in my opinion. Photovoltaic cells are declining in cost, and Battery cells/packs are declining in cost. Relative to alternative options, this sets broader energy transformation to favour these categories from simple economics. The game then turns into finding businesses with specific advantages that tend to benefit from these trends. Energy Transformation has been a new category for my research zone so my eyes aren't completely open to all the possibilities out there but I'd like to nevertheless share these stocks.
#16 Scatec ASA
Diversified Renewable Energy Producer | Norway, Global
| Ticker | Share Price | Enterprise Value | LTM Gross Margin | LTM FCF Margin | LTM Revenue Growth | NTM Revenue Growth | LTM EV/S | NTM EV/S |
| OTCMKTS: OTCPK:STECF OB: SCATC LSE: 03I | STECF: $34.98 SCATC: 258.6 NOK 03I: 260.2 NOK | 48.65B NOK; (~$6B USD) | NA | -3.86% | 52.95% | 106.4% | 17.6x | 8.4x |
Raw data and charts from Koyfin, Author Calculations
Scatec is a truly global business, headquartered in Norway. Their employees hop around in often ignored geographies (like Tunisia, Pakistan, etc.) and developing markets to build and run solar, wind, hydro etc. installations. Nobody seems close to what they're doing in the geographies they're operating in. Expensive valuations, but high quality and they only seem to be limited by how fast they can fund and build these future installations. While Scatec is listed on OTC markets as STECF, liquidity has been particularly strange and I'd look at the London (LSE) or Oslo (OB) exchanges (These are foreign listings; brokerage and country-specific rules and regulations apply). The financials include the impact of a large recent; expansion is funded extensively from operating cash flow and some long-term debt on the balance sheet.
#17 Enphase Energy
Solar Microinverters & Solar Solutions | USA, Global
| Ticker | Share Price | Enterprise Value | LTM Gross Margin | LTM FCF Margin | LTM Revenue Growth | NTM Revenue Growth | LTM EV/S | NTM EV/S |
$162.69 | $21.4B | 44.7% | 27.3% | 24.0% | 73.1% | 28.1x | 16.2x |
Raw data and charts from Koyfin, Author Calculations
Enphase is a US-based provider of microinverters and solar energy-related systems. Their microinverter tech appears to be best-in-class, though I've also been impressed how they've used their expertise in microinverters to create a complete solar energy solution ecosystem for home and commercial applications. That makes the company's products sticky as people get used to Enphase as a complete software/hardware provider that works with a great user experience layer through apps and web. Great margins and strong forward growth profile.
#18 SolarEdge Technologies
Solar Microinverters & Solar Solutions | Israel, Global
| Ticker | Share Price | Enterprise Value | LTM Gross Margin | LTM FCF Margin | LTM Revenue Growth | NTM Revenue Growth | LTM EV/S | NTM EV/S |
$283.4 | $14.1B | 31.6% | 6.8% | 2.4% | 26.4% | 9.5x | 7.5x |
Raw data and charts from Koyfin, Author Calculations
SolarEdge is an Enphase competitor in the inverter market and has experienced sharply decelerating growth. With that, valuations have compressed substantially but if the market opportunity is large enough, we could see a return to form. They can have a particular splash in Europe and international geographies where Enphase isn't quite ruling. A lot is riding on the next-gen inverter technology to move the needle in performance; worth investigating further and leaning more towards a value pick than an aggressive growth pick.
#19 ReNew Power (SPAC)
Solar & Wind Producer | India
| Ticker | Share Price | Pro-forma Enterprise Value | 2021-2025 EBITDA CAGR | NTM EV/EBITDA |
$10.17 | $7.85B | 31% | 9.7x |
Price data and chart from Koyfin, all other data and forward valuations from Investor Presentation
RMG Acquisition Corp II, a SPAC sponsored by RMG Capital, announced recently that it entered into a business combination agreement with ReNew Power in India (thus effectively taking it public post-transaction). Solar capacity has multiplied rapidly in India in recent years, and ReNew is the market leader in renewable (solar+wind) installations in the country in terms of installed and committed capacity combined. They're very well run featuring an 80+% EBITDA margin, backed by marquee investors, and are substantially undervalued at their Fwd EV/EBITDA multiples when compared to the closest competition. While they've historically had substantial debt on their balance sheet, the post-transaction cash proceeds are set to deleverage the capital structure and provide enough funds to keep the company going until 2025. Management explicitly stated that the transaction, shall it go through, provides enough cash to fund planned expansion until 2025.
#20 FREYR Battery (SPAC)
Lithium-Ion Battery Producer | Norway
| Ticker | Share Price | Enterprise Value (Pro-forma) | Equity Value (Pro-forma) | 2025 EV/ EBITDA |
ALUS | $10.04 | $529M | $1.4B | 0.8x |
Price data and chart from Koyfin, all other data and forward valuations from Investor Presentation
Also a SPAC target; currently trading as ALUS (Alussa Energy Acquisition Corp), pre-transaction. A moonshot play, FREYR plans to become one of the largest producers of lithium-ion batteries at giga-capacity in Europe by 2025. Strong team, local advantages of battery material and cheap clean energy in Norway, and an IP partnership with an under the radar MIT spinoff battery tech business called 24M. 24M has invented "Semi-Solid" lithium batteries and a highly scalable manufacturing process to mass-produce them; these batteries are claimed to be energy-dense, require fewer materials, are cheaper to produce, and are ready to manufacture using the processes in place right now. FREYR doesn't have anything apart from the IP, partnerships, and land, but the valuation is compelling for a long shot. This is one where I'm fine losing all my capital on; alternatively, it can turn out to be a multibagger over time given the current implied post-money valuations.
Ending Notes
Once again, this list is in no particular order and the businesses involved offer varying levels of risk. Though, they lean towards higher-risk as public equities go if one considers potential drawdowns and volatility. The sectors, growth profiles, and geographies were selected based on personal preferences, frameworks, and competence limitations. As you might have guessed, I happen to like exposure to stocks outside the US, particularly in emerging markets like Brazil and some Asian geographies. With demographic tailwinds and booming middle-class consumption, digital consumption is underrated in these areas in my opinion.
I generally try to pick businesses that rate highly on qualitative metrics (great product, management, competitive positioning, etc) that I believe increase the surface area on which extra sales growth can fall upon, relative to existing market consensus. That could be boosted from network effects, new product verticals, catalysts, tailwinds, and generally great new technology. The right stuff coming together hopefully manifests in sales acceleration and a recharged growth narrative, that follows with the public markets rewarding the stock with higher prices over the long run. What I'm trying to say is that I like the qualitative ingredients of a lot of the businesses above at first glance. Of course, valuations are very important but it's wise to have a large wiggle room especially in tech as winning businesses in these particular categories often take most or all, and they tend to usually be always trading at seemingly unpalatable multiples apart from the occasional rare opportunity. It's therefore a balancing act. Thanks for reading, and let me know what you think in the comments!
This article was written by
Analyst’s Disclosure: I am/we are long ALUS, ASAN, CURI, DT, PAGS, PLTR, RMGB, ROKU, SE, SKLZ, SQ. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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