Here are 5 stocks to keep in your watchlist for the coming weeks.
While Airbnb has had a challenging year for shareholders, chances are if you’re comparing losses across your portfolio, Airbnb isn’t among the worst. That’s because unlike many other unprofitable growth businesses. Airbnb may not be profitable on a GAAP basis, but don’t underestimate the cash-generating potential of this business. With free cash flow margins above 15% over the past year and more than $8 billion in cash on its balance sheet, Airbnb has more than enough potential to self-fund growth, even with its notable debt load.
In Intuit’s most recent quarter, the business posted strong outperformance by both its core tax offerings and acquisitions such as CreditKarma. Intuit’s strength shows the power of being in a position to reinvest cash into new business lines, and management’s shrewd approach to capital allocation means we expect these investments to pay off for long-term investors.
Shopify processed a massive $175 billion in gross merchandise volume on its platform last year. To continue to grow, the company must invest in infrastructure that makes it easy for an ever-growing horde of merchants to sell more. The Shopify Fulfillment Network is but one example of innumerable investments the organization is making today to continue its dominance in small merchant retail services. We remain very confident in Shopify’s future.
Revenue in the last three months of its fiscal 2022 year doubled to $360 million. Snowflake’s net revenue retention rate (a measure of the growth of average customer spending) hit 178% last quarter. This type of model is efficient from the customer’s perspective, and in many cases, it can result in higher spends versus flat-priced subscription models. Superior product quality and attractive pricing strategies are winning converts: Snowflake now boasts 184 customers with an annual spending of at least $1 million.
UiPath is an industry leader in the burgeoning field of robotic process automation (RPA). The company’s subscription software uses computer vision and artificial intelligence to automate repetitive computer tasks, making employees more productive (at least, in theory!). Co-founder and CEO Daniel Dines has presided over the organization’s strong growth. This visionary leader still controls roughly 21% of shares, a stake worth more than $3 billion. UiPath’s earnings is expected to be released on March 30.
Credit to motley fool articles