Stocks I am on the fence about
These stocks are really intriguing, but I am on the fence if I want to invest in them.
1. SNOW - Snowflake
Snowflake is a big data company. Their revenue is definitely increasing which is a good sign. Their revenue is not massive like some of the other tech companies. But their stocks already has a high market cap. Will it really go up anymore for a long time.
Honestly, I do not quite understand this business enough to know if their technology gives other businesses an edge. They are also B2B which can be a tough space to play in.
2. SHOP - Shopify
This one I am probably going to regret not buying into.
They are already profitable and increasing their revenue really quickly. They are the biggest competition to Amazon. They stock has a high market cap for its revenue, but I think the stock will continue to increase.
There are so many players in the e-Commerce space, I just think going forward it is going to be tough for SHOP to keep its edge.
3. PYPL - PayPal
Again, probably going to regret not buying into this one. PayPal was the OG in the online payment space. They were not the first, but they were at the beginning of the wave and executed really well.
Once again, there is a lot of competition now and the name of the game for PayPal is volume. Can they maintain that edge that they have developed? I'm not sure.
I think Square aka Bloc might be a little bit more innovative than PayPal and eventually overtake them with all the different revenue lines that are getting into.
Not just a lot of competition, but the most well funded competition out there. Props to them for getting as far as they have.
Now they have a channel, which is going to require a ton of content investment. It is going to be a really tough road for them in the future.
I never got into Zoom. Even during the pandemic it felt like zoom was going to be a flash in the pan. I do think their product is a necessity in the current and future business market, but I just do not know how they are going to continue growing. Their acquisition of Five9 was shut down. This one I am sitting on the sidelines.
Again, I am sure I am going to regret not buying into this business, but I know what is stopping me.
DocuSign is definitely the leader in this space.
A lot of their business customers are in real estate. And real estate is similar to commodities. The ecosystem rises and falls in waves. Right now interest rates are high and housing is way down. When interest rates are low again housing will go back up.
I do not love to invest in businesses that have really volatile markets. I want to invest in businesses that are so essential they thrive in any type of market.
Best Buy has been able to survive and thrive in the retail space for the past 10 years, which is not an easy task at all. Every time I have gone into that store it is busy. I used to love browsing CDs and video games in that store.
Analysts on TV continue to talk about how wonderful Best Buy is.
But Best Buy is not Amazon or Walmart or Target. I just do not believe that Best Buy is ever going to have the scale needed for the stock to take off. It will continue to survive in the retail space, but I highly doubt that the stock will double or triple in value.
The stock has been a beast.
I just cannot get over how ugly the shoes are.
When I was in Hawaii, some dude was hiking in the forest in Croc's. Madness.
They have a great brand and great products.
I just do not know how much more they can expand.
Dropbox seems to have everything going for it. It just seems like the company has never taken off.