Nasdaq Bear Market: 3 Extraordinary Growth Stocks That Can Triple Your Money By 2028

This has been a year for the record books…in all the wrong ways. The widely followed S&P 500 produced its worst six-month performance to start a year since 1970. Meanwhile, the tech-driven sector Nasdaq Composite (^IXIC 0.00%)which was largely responsible for taking the broader market to new heights, plunged as much as 34% below its all-time closing high set in November and consolidated into a bear market.

While big drops in major US indices can make investors nervous and lead to short-term unrealized losses, they are historically the perfect time for patient investors to jump in. This is because every double-digit percentage decline in the major indices, including the Nasdaq Composite, has finally been put in the rearview mirror by a prolonged bull market rally. Over time, the broader market tends to go up.

Bear silhouette overlaid on newspaper page with visible stock quotes.

Image source: Getty Images.

In other words, the current bear market represents an opportunity for long-term investors to acquire innovative, high-growth businesses at a significant discount. The following three extraordinary growth stocks they are perfect examples of companies with the ability to triple their money by 2028.

Amazon

The first phenomenal growth stock with a smorgasbord of competitive advantages in its candles that can triple your money in six years is none other than FAANG shares Amazon (AMZN 1.12%).

Some people will clearly be concerned about the idea of ​​a company valued at $1.4 trillion tripling in value in the next six years. but I assure you it’s quite achievablebased on Amazon’s growth track record, innovation, and operating cash flow.

As most people probably know, Amazon sits atop a very high pedestal in the field of online retail. The company’s market is expected to generate around $0.40 of every $1 in US online retail sales in 2022. Amazon’s share of US online retail sales is in higher reality than its 14 closest competitors combined!

But it’s not retail sales that have the potential to propel Amazon to a 200% profit by 2028. It’s actually its higher-margin sales channels like subscription services, advertising, and online services. Cloud. For example, the company has enrolled over 200 million people worldwide to a Prime membership. The fees Amazon collects from its Prime members help the company funnel cash into other high-growth initiatives, as well as its rapidly growing logistics network.

All eyes are also on the Amazon Web Services (AWS) cloud infrastructure services segment. AWS contributed a third of all spending on cloud services during the first quarter. It’s increased sales by 33% during an exceptionally challenging second quarter, and it’s a significantly highest-margin operating segment for Amazon. It frequently generates the bulk of Amazon’s operating income, even though it only accounts for about a sixth of the company’s net sales.

With Wall Street and investors paying a median of 30 times year-end operating cash flow for Amazon stock during the 2010s, Amazon’s stock price could triple by 2025, according to the cash flow forecast. cash consensus of analysts. Between now and 2028, a quadrupling of Amazon’s annual cash flow per share is not out of the question, which could realistically put a $4.2 trillion valuation on the table.

Bark

A Second Extraordinary Growth Stock With All The Tools And Intangibles Needed To Triple Your Money By 2028 Is Focused On Dogs pet products and services company Bark (BARK 7.14%).

A quick glance at Bark’s chart since his debut in December 2020 clearly shows that he has faced some challenges. Most companies that went public through a special purpose acquisition company (SPAC), such as Bark, were thrown into the shed in 2021 and 2022. The Nasdaq bear market has also been unforgiving on growth stocks that they do not generate profit. With Bark still in its expansion phase, it remains unprofitable and therefore a target for sellers.

However, many of Bark’s metrics point in the right direction, indicating great potential for patient investors.

For starters, the pet industry it’s practically recession-proof. According to sales data from the American Pet Products Association, spending on pets hasn’t declined year over year in the US in more than a quarter century. Additionally, the number of American households with a pet is at an all-time high, according to APPA’s 2021-2022 survey. Owners are more than willing to open their wallets to ensure the happiness and well-being of their four-legged family members.

What makes Bark such an intriguing purchase is its direct-to-consumer (DTC) operating model. Although the company has its products in tens of thousands of retail stores, physical stores represented only 10% of revenue in the first fiscal quarter of 2023 (ended June 30, 2022). Comparatively, DTC sales comprised the other 90% of revenue. Having nearly 2.28 million active subscribers means less need for excess physical inventory and generally lower overhead. In short, it should help Bark maintain a gross margin of around 60%.

Bark’s innovation is also beginning to translate into increased sales. The company’s Bark Bright dental products (dental chews and toothpaste for dogs) saw sales increase 169% to $2.4 million in the quarter ending June. Meanwhile, Bark Eats will target specific breeds with select dry food diets. The point is that Bark’s innovation is generating high-margin ancillary sales, which should help the company achieve recurring profit by the middle of the decade, if not sooner.

Pets are almost always a money-making machine for businesses, giving Bark a bright future.

Employees using tablets and laptops to analyze business metrics during a meeting in the conference room.

Image source: Getty Images.

PubMatic

The Third Extraordinary Growth Stock That Can Triple Your Money By 2028 Is Cloud-Based ad tech stocks PubMatic (PUBM) -0.48%).

For the past two quarters, the wall of concern has been growing regarding ad spending. We have witnessed consecutive quarters of declining US gross domestic product (a “technical recession“), as well as many advertising-driven companies lowering their growth prospects in 2022 as the Federal Reserve rapidly raises interest rates. As for PubMatic, it’s been business as usual.

PubMatic is what is known as a sell side provider. Specifically, it helps publishing companies sell their digital display space to advertisers using its cloud-based programmatic advertising platform. While you may think that the highest price offered always wins, this is not the case. PubMatic’s machine learning software selects the ads that are most relevant to users. This keeps advertisers happy and should ultimately increase ad pricing power for publishing companies in the long run.

What makes PubMatic such a great investment is the trends in digital ad spending. Advertising dollars are steadily moving away from traditional print and toward digital platforms, such as video, mobile, connected TV, and hype programmatic ads (delivering ads through streaming services). While the digital advertising industry expects low double-digit growth through the middle of the decade, PubMatic just wrapped up its eighth consecutive quarter with more than 20% revenue growth. PubMatic is crushing the industry average growth rateand it’s primarily the result of existing customers spending significantly more year after year.

Something else worth noting about PubMatic is the company’s cloud infrastructure. Instead of relying on an outside provider, PubMatic built your platform from scratch. As the company’s sales grew, the scaling efficiencies became really apparent.

The icing on the cake is that PubMatic ended the most recent quarter with $183 million in cash, cash equivalents and marketable securities, and not a dime of debt to its name. With an impeccable balance sheet and a sustained growth rate of 20% (or more), tripling by 2028 seems within reach for PubMatic.

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