Five Innovative Ideas for Investments
By: Stacey Nickens
Instead of going to restaurants, people have their food delivered through GrubHub, DoorDash, or UberEats. Many consumers pay for purchases using technologies such as Square or PayPal instead of using cash. Cryptocurrency is on the rise, and autonomous cars could be our future. With all of these technological advances, it can be challenging to find healthy and innovative investment opportunities that are more than just a fad. That being said, I have compiled a list of stocks and ETFs may be interesting to investors who want to bring their portfolio into the 21st Century while also remaining focused on company fundamentals.
Coinbase Global (COIN)
Coinbase Global is the primary cryptocurrency exchange in the United States. With the popularity of Bitcoin and other cryptocurrencies on the rise, Coinbase Global experienced significant growth in 2020. The company grew their revenue by 139% year over year and earned a net income of $322 million. Their 2020 net income was significantly higher than their 2019 net income, which was a loss of $30 million. Preliminary results suggest Coinbase further accelerated their growth during the first quarter of 2021, and knowing this, COIN could be a strong growth investment within a portfolio.
MicroVision (MVIS) is a company that develops laser scanning technology. MicroVision recently announced that they have completed a major milestone in the development of their lidar sensor. Their lidar sensor could be used to advance autonomous driving, and the company believes a version of their new sensor may be available for sale by the third or fourth quarter of 2021. Beyond this growth opportunity, MicroVision also secured a $21 billion contract with the U.S. Army, to which they will supply augmented-reality headsets. With these opportunities and others, now could be an opportune time to buy shares in this innovative company.
Skillz is a mobile gaming platform that has benefited from the rapid growth of mobile gaming over the past couple of years. Skillz has further generated significant growth from the popularity of mobile esports. Analysts at Skillz believe that the mobile gaming market will hit $161 billion by 2025, and with their Solitaire Cube, Blackout Bingo, and other games, Skillz is well-positioned to profit from this growth in mobile gaming. The pandemic could also accelerate this trend. With many people spending more time at home, individuals are looking for new ways to fill their free time, one of which has included mobile gaming. Finally, Skillz has found a unique way to generate profits from their games. While other mobile games generate profits through ads or in-app purchases, Skillz earns money by allowing users to enter gaming tournaments by paying an entry fee. Participants who win the tournament can then earn prize money. Between their unique revenue generation model and their market positioning, Skillz could be a healthy growth add to a portfolio.
Ark Fintech Innovation ETF (ARKF)
This ETF invests in companies who specialize in innovative financial technology. Some of its top holdings include Square, PayPal, Zillow, and Shopify. Many of these financial technology companies have seen increased demand over the past few years, especially with online shopping increasing during the pandemic. Square has become a dominant cashiering application amongst small businesses and vendors. PayPal has posted strong growth, with consumers able to use the application on a variety of online shopping websites. Additionally, PayPal has recently gotten into the Bitcoin business, making it poised for even more growth moving forward. Altogether, the ARKF ETF could allow you to benefit from the strong demand and growth the financial technology sector is currently experiencing.
Transformation Changes ETF (ANEW)
The ANEW ETF focuses on companies that are on the forefront of digitization, genomics, telehealth, and food revolution. Some companies held by this ETF focus on cybersecurity or social media. Others are involved in food delivery technology. For example, a few of the ETF’s current top holdings include Corteva, Activision Blizzard, and Netflix. These and other holdings have seen strong growth over the past few years, and the ANEW ETF could allow you to benefit from that growth.