If you have invested in Amazon 10 years ago if you had held shares, the value of your position would have grown by about 1 660%. An investment in Netflix stock would have yielded a return of 1 720% over the same piece. There are other good businesses that have recently delivered even better returns. Ecommerce Service Provider ShopifyFor example, the share has risen by more than 4480% over the past five years.
You will not always buy a stock at the best price, but if you support large companies that have sustainable advantages in growth markets, you can achieve a big win. Read here to two companies that need the necessary to crush the market in the long run.
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1. Match group
Match group (NASDAQ: MTCH) is a leader in the dating app market. Although its flagship app, Tinder, makes up a majority of its revenue, the company’s umbrella also includes dating services Hinge, Match, Plenty of Fish and OkCupid. No competitor has a larger reach in the US and European markets, and it looks like the company’s growth story has just begun.
The coronavirus pandemic made it more difficult for the company to add paying users, but Match still managed to show impressive growth. Revenue from the fourth quarter increased 19% year-on-year to $ 651 million, and average monthly subscribers increased 12% to 10.9 million.
In a year marked by serious pandemic challenges, Match still managed to grow its revenue by 17% to $ 2.4 billion. Sales growth was slightly lower than the 19% annual increase the company posted in 2019, but Tinder still stands as the best non-video game app in the world, and it’s clear that there’s still a lot of momentum behind it. the business is. .
Match has a leading edge in the dating space thanks to its diverse collection of apps. Tinder accounted for about 58% of the company’s revenue last year, but there is value in the company’s ecosystem approach. Technical advances made for one platform can be shared between apps, and especially the Hinge app’s strong growth shows that Match outside of Tinder has real opportunities. The company also has plenty of room for growth in international markets, and recently announced that it will spend $ 1.7 billion to acquire South Korean social media company Hyperconnect.
The market for dating apps is still relatively young. Bringing more members on board and increasing the average revenue per user should lead to huge profits over time. Growth for the online dating market seems like a pretty safe bet, and Match has a good chance of retaining a leadership position in the category.
Activision Blizzard
After hitting a rough spot in late 2018, Activision Blizzardsay (NASDAQ: ATVI) the share price started roaring again. The video game maker runs a hit-and-run business, and a lack of large new franchise expenses, combined with declining performance for some properties, has led to a slowdown in its growth. However, sales for the company are strong Call of Duty series on console and computer platforms and the release of an extremely popular mobile phone franchise, has helped to change its destiny.
In addition to Call of Duty, Activision Blizzard also produces blockbuster franchises, including World of Warcraft, Candy Crush Saga, Diablo, en Ear Watch. Following the incredible success of Call of Duty: cell phonemanagement seems to be committed to bridging more of its intellectual properties to smartphones and tablets. There is great potential there.
Activision Blizzard also has a large catalog of titles ready for monetization. The publisher has already achieved considerable success with the remodeling of games in the Tony Hawk, Crash Bandicoot, en Spyro the dragon franchises, and there is still a lot of unused content in the company’s library to work with. This approach to making money from older games is very successful Nintendo over the past few years, with the release of video games that have garnered strong unit sales and margins on Switch hardware, and Activision should be more capable of that.
While the natural progression of the life cycles of video games means that the performance of the company is somewhat uneven, Activision Blizzard has usually done an excellent job of introducing and maintaining the enduring features. The game publisher will continue to play a leading role in shaping the future of interactive entertainment, and it looks like its stock is winning over the long term.
This article represents the opinion of the author, who may not be in agreement with the ‘official’ recommendation position of a Motley Fool premium advisory service. We are furry! Questioning an investment thesis – even one of our own – helps us all to think critically about investments and to make decisions that help us become smarter, happier and richer.