on the crypto
It may seem counterintuitive to invest in stocks right now as indices plummet and plunge further into a bear market. But even though a massive sell-off is underway, there are still many large companies with fantastic long-term prospects.
Two companies that might seem very smart about investing $ 1.000 when the market recovers are Airbnb (Nasdaq shares: ABNB) and Roku (Nasdaq shares: ROKU). Here because.
1 Airbnb
Don't get me wrong, hotels can be great. If you are looking for a downtown hotel in the heart of a big city, they can be a great option. But for a one-of-a-kind travel experience, I'm not up to par at all.
This is what sets Airbnb apart from its short-stay competitors. Users turn to Airbnb to find truly unique places and experiences. Not only is it offering its users stays and places that hotels can hardly match, but Airbnb is also experiencing tremendous growth that investors shouldn't ignore.
For starters, consider that the company's total revenue in the first quarter reached $ 1,5 billion, an 80% jump from the comparable quarter of 2019 (quarterly comparisons before the pandemic are the most accurate because the COVID-19 stopped most travel in 2020).
Second, the company's booked nights and experiences have already surpassed pre-pandemic levels, reaching 102 million in the first quarter.
Sure, inflation and a potential economic slowdown are things Airbnb investors need to keep an eye on. But the company has already shown that it is able to overcome very difficult times and come out even stronger.
And with the company's shares now trading below the IPO price, investors had a second chance to grab the shares at a discount.
2st Year
The recent sell-off in tech stocks has hit Roku stock hard, but the decline has to do with negative market sentiment rather than woes in Roku's business.
In the company's last quarter, Roku's active accounts increased 14% to a staggering 61,3 million. And in this case, active accounts really mean active. Roku users streamed more than 21 billion hours of streaming in the quarter, up 14% from the previous year.
Even more impressive is the company's average revenue per user (ARPU), which increased 34% from the previous quarter to $ 42,91.
Investors will want to keep an eye out for any changes in Roku's ad revenue due to inflation and the economy, but the majority of the company's sales come from its platform (subscriptions that users sign up for while on the platform), the which means that Roku can still grow even if ad revenue temporarily slows.
Let's recap for a moment
Roku is increasing its active user base at a rapid pace, these users spend more time on the video-streaming platform than ever before, and Roku has significantly increased the amount of money it makes from them. What's not to love?
With the stock price falling 76% over the past 12 months, investing $ 1.000 in this stock now and waiting patiently for the market to recover could prove to be a very smart long-term operation.
