The Most Profitable Investments in 2021
2020 was, and 2021 is, exceptional in many ways. The market has been testing investors’ nerves and the world stock markets fell by about 30 percent. However, there has been a huge difference between different countries. Even though the world was facing a stock market crash, there have been some very profitable investments.
Before we go through the most profitable investments in 2021, it is important that you consider an investment strategy if you want to start investing. First things first, make sure you only invest if you have enough money to do so with. Second, keep the risks low by investing long-term, and stick to low-risk investments such as forex trading and index funds at fxforex.com. Thirdly, diversify your portfolio by adding different financial instruments to it.
Amazon.com (NASDAQ: FB)
The shares in the e-commerce giant Amazon are among the most valuable and traded in the whole world. The company’s shares have risen from just $18 at the company’s IPO in 1997 to over $3,000 today – an increase of over 17,000 percent.
Amazon has also seen its stock price soar by more than 30 percent during the covid-19 pandemic. This increase is not surprising since the pandemic has increased the demand for online shopping and delivery services. It is rarely a bad time to invest in Amazon since online shopping is only expected to increase.
The Trade Desk (NASDAQ: TTD)
Another stock that has proven to be profitable during 2021 is The Trade Desk. The Trade Desk is a technology company focused on advertising and marketing. The company offers a software platform that enables customers to purchase and manage data-driven digital advertising campaigns.
Even if The Trade Desk share is traded with a P/E ratio of 170.71 and a future P/E ratio of 114.97, its exciting growth history shows it may be profitable in the future. Some analysts expect The Trade Desk earnings per share to increase by 118.30 percent during the year and with an average growth rate of 32 percent over the next five years.
Shopify (NYSE: SHOP)
Another e-commerce company whose stock price has soared is Shopify. To understand its growth, Shopify has a market value of 36.2 billion dollars and is expected to reach revenue this year of 1.54 billion dollars. The earnings per share are expected to increase by 62 percent this year but only 56 percent the year after, which makes many investors doubt investing in Shopify’s stock shares.
There are, however, many reasons for the enormous enthusiasm around the company in the stock market. Many users praise the user-friendliness of the e-commerce platform, a marketing strategy that drives more sales.
Once again, we have promising e-commerce on the rise. Just to put it short, MercadoLibre is Latin America’s response to the western Amazon. If we look with a sceptical lens, we can state that Amazon and Alibaba are the two dominant players that are taking over the world when it comes to e-commerce.
However, MercadoLibre has jumped 165 percent over the past year, and 365 percent in the last three years. With that said, the future is bright for Latin American e-commerce and their stock might be worth diversifying your portfolio with.