Surefire Stocks That Could Turn $250k Into $1 Million: It’s been a strange time for technology stocks. After hitting new highs towards the end of 2021, many lost 40 percent or more of their value. Some, like Peloton (NASDAQ:PTON), plunged closer to 80 percent.
The tech-heavy Nasdaq shows the true extent of the carnage. In November, it surpassed the 16,000 mark, but as of late May, the index has fallen below 12,000.
There are a number of challenges contributing to the tech stock decline, including rising interest rates, inflation, and the war in Ukraine. In isolation, each of these factors would put investors into a pessimistic mood. The combination has the market in a state of high anxiety.
Investors are selling off riskier growth stocks in favor of more reliable performers like energy and consumer staples. This caused a steep downturn in the fortunes of promising tech companies, but that’s not the end of the story.
It’s true that tech stocks aren’t investor favorites at the moment, but that means it’s a perfect time to buy into high-potential companies. Prices are low, which increases the odds of strong long-term returns.
Of course, this strategy only works if the companies in question are on solid financial footing. More importantly, they must have a workable strategy and a management team that can execute effectively. In other words, they are the tech companies with the sort of innovative products and services that can disrupt entire industries, and they have the ability to take those products and services mainstream.
These are three surefire stocks that could turn $250k into $1 million over the next 10 years.
SoFi Adds 400,000 New Members
SoFi (NASDAQ:SOFI) is a new type of financial services company. Among other unique characteristics, it is entirely digital.
The company started off as an alternative to traditional student loans, and it has since expanded its products and services to include just about everything that is available through commercial banks. Consumers have access to personal loans and mortgages through SoFi, along with deposit accounts, brokerage accounts, and cryptocurrency.
SoFi stock dropped alongside its tech industry peers, losing more than 55 percent of its value since the beginning of the year.
April was particularly dismal because SoFi issued a press release revising its full-year revenue and adjusted EBITDA guidance down.
The change came in response to an extension of the moratorium on student loan payments, which are currently on hold through August. SoFi’s new guidance assumes loan payments will stay paused through the end of the year, just to be on the safe side.
SoFi is still in the early stages of its development, so its investors are interested in growth potential over profits for the moment. That fact makes SoFi stock riskier than established blue-chip financial institutions like American Express, JPMorgan Chase, and Goldman Sachs.
When SoFi stock was at its peak, there was a persuasive argument that the company was overvalued and its risk outweighed the potential reward. Now that SoFi stock is trading below $10 a share, the level of risk has decreased significantly.
The company shows signs that it is achieving growth objectives after adding 400,000 members during the first quarter of 2022. The total number of SoFi members is approaching four million, and those members are deepening their relationship by adding new products and services to their profiles.
SoFi has all of the characteristics of a successful tech startup, and most analysts are confident that the company’s future is bright. That makes SoFi stock a smart addition for long-term growth.
Planet.com Lands Important NRO Deal
From the ground, it is nearly impossible to get a true perspective of the planet’s vast topography. It’s even more difficult to understand how the Earth changes over time when standard photos only show a tiny slice of the landscape.
Planet Labs (NYSE:PL) is working to make the big picture accessible to everyone through daily imaging of the entire globe. There are hundreds of applications for Planet’s most up-to-date images, but the real value is in the images captured over time. Planet Lab’s image database illustrates changes caused by climate change, natural disasters, and anything else that transforms a particular landscape.
Planet’s client list ranges from government agencies to leaders in the agricultural industry, all of whom want to – as Planet puts it – anticipate what’s next. The company’s current satellites offer the highest frequency satellite data available in the commercial marketplace, and it is hard at work on next-generation technology.
Planet Labs started trading publicly in December 2021 after merging with a special purpose acquisition company (SPAC). The stock went above $12 per share briefly before losing approximately 50 percent of its value by the end of the year.
Planet reached a low of under $4 per share in early May, but that downward trend could be turning around. On May 25th, the company announced a five-year contract with the National Reconnaissance Office (NRO) that boosted share prices by nearly 15 percent.
Gaining the NRO’s trust is not easy, and the fact that Planet has secured this contract demonstrates the company’s superior capabilities. That makes Planet stock a buy and hold long-term.
Is Affirm Stock A Buy?
The United States isn’t known for its high savings rates – in fact, consumers often spend more than they have in their bank accounts. According to a survey by credit rating agency Experian, the average US family has about $6,000 in credit card debt.
Buy now, pay later is popular in the US, but most consumers are anxious to get their cards paid off. Affirm (NASDAQ:AFRM) offers an appealing alternative to high-interest credit cards with a point-of-sale program that breaks the total purchase price into a small number of payments.
Consumers are able to buy what they need now, even if they don’t have the cash. However, because an Affirm installment loan is designed to be short-term, debt doesn’t pile up to overwhelming levels. In some cases, the installment loans have no interest at all. If buyers have poor credit or need more time to pay, Affirm loans may have an APR of 10 percent to 30 percent.
Affirm started trading on the Nasdaq in January 2021, and by the end of the year, it was wildly overvalued according to most analysts. Share prices exceeded $175, which was steep for a company with some financial challenges to sort out.
Affirm stock crashed hard when other tech companies went down. Year-to-date, Affirm stock lost 75 percent of its value. For investors who didn’t buy at the peak, that’s good news because the company is now trading at a relative discount.
Most industry experts agree that Affirm has what it takes to turn a profit within the next two years. When it does, Affirm stock will go up, so those who buy now could realize substantial returns.
The author has no position in any of the stocks mentioned. Financhill has a disclosure policy. This post may contain affiliate links or links from our sponsors.