How To Spot A Stock That Is About To Soar
Early investments in companies like Microsoft, Amazon, Apple, and Google provided investors with massive returns. While they may be atypical for the market overall, it’s exciting to consider how you may be able to replicate the results of investors who brought home 1,000% or better from a single stock.
Each of these companies had an idea that changed the world. Microsoft helped put a computer on every desk in every workplace and in most homes in the world. Google changed how we search for information and monetized that search. Amazon changed how we shop. Apple changed how we use phones and the internet.
Target Sold Businesses
GoPro promised to change how we capture and edit video, with its namesake GoPro camera at the front and center. The stock shot up to $86 per share over the following months after an IPO at $24 per share. Then came a lengthy, slow decline that brought the stock down to around $5 per share as of late 2018. What happened at GoPro that made it different from Facebook (now Meta), Google, and Amazon?
GoPro did not actually change the world. It just makes cameras. And while it sells over $1 billion worth of cameras every year, the company saw sales decline in 2016, and net profits turned into losses nearly every quarter for the next several years. GoPro wanted to change the world, but that doesn’t mean it had the ability to do so, or even to earn a profit.
Meta was able to follow through on its vision. Despite several missteps, the company has grown steadily from an IPO price of $38 per share to an all-time high of $382.18 on September 7, 2021. There is little question as to why Meta has quickly become one of the world’s most valuable companies with billions of users and a $29.1 billion profit in 2020.
Make An Early Investment
Tesla is another company with lofty goals to change the world. What began as an electric car manufacturer has grown into one of the largest producers of batteries in the world. Tesla owns solar power business Solar City, and released the Tesla Powerwall. It built a “Gigafactory” in Nevada to capture additional economies of scale in battery production.
Tesla’s stock price was a wild ride for its first several years. The stock hovered around $30 to $40 per share until 2017 when the stock began an upward roller coaster. At one point, the shares had risen to a price nearly 50 times greater than those early days, even before the stock had been trading for less than 10 years. Even so, Tesla remains a high-risk opportunity because of the company’s large-scale ambitions.
The Venture Capital Approach
Tesla is another company with lofty goals to change the world. What began as an electric car manufacturer has grown into one of the largest producers of batteries in the world. Tesla owns solar power business Solar City, and released the Tesla Powerwall. It built a “Gigafactory” in Nevada to capture additional economies of scale in battery production.
Tesla’s stock price was a wild ride for its first several years. The stock hovered around $30 to $40 per share until 2017 when the stock began an upward roller coaster. At one point, the shares had risen to a price nearly 50 times greater than those early days, even before the stock had been trading for less than 10 years. Even so, Tesla remains a high-risk opportunity because of the company’s large-scale ambitions.
