Working towards a million-dollar retirement goal may no longer guarantee opulence, but it remains a noble pursuit. When coupled with auxiliary income streams such as Social Security or a pension, $1 million can serve as a solid financial cushion, ensuring a comfortable retirement.
While artificial intelligence (AI) stocks dominate current investor interest, a realm beyond AI holds abundant opportunities for those seeking portfolio expansion. Several stocks exhibit the potential to transform an investment of $250,000 into $1 million over a span of ten years.
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Untapping Potential: The Trade Desk
The Trade Desk (NASDAQ: TTD) emerges as the premier independent demand-side platform (DSP) within the digital advertising realm. Ad agencies and brands rely on The Trade Desk’s cloud-based, self-serve platform for efficient management and optimization of ad campaigns. Boasting a remarkable growth trajectory, the stock has surged over 2,000% since its IPO in 2016.
Setting itself apart from many other growth stocks, The Trade Desk has successfully delivered swift revenue growth coupled with strong profits. In the latest financial quarter, revenue soared by 23% to $606 million, with reported adjusted net income amounting to $207 million.
In the foreseeable future, the company is poised for sustained growth as the digital advertising landscape expands through channels like Connected TV, retail media, and innovative technologies. Bolstered by Unified ID 2.0 and the new AI platform Kokai, The Trade Desk is on track to fortify its market position significantly.
Debuting Kokai last year, CEO Jeff Green anticipates a palpable impact on both the business and its clientele this year. This innovation might propel The Trade Desk into a significant growth phase in the upcoming years. If the company maintains revenue and profit growth rates of 20% or higher, a fourfold increase in value over the next decade is a plausible scenario.
Resilience Unleashed: Roku
Similar to The Trade Desk, Roku (NASDAQ: ROKU) exemplifies another digital advertising stock with vast growth potential. Roku faced challenges during the pandemic as advertisers curtailed spending in anticipation of an economic downturn that never materialized. Despite improved revenue growth, spending from the core media and entertainment sector lags behind.
Nonetheless, the tide is expected to turn as traditional media entities adapt to the streaming landscape, and viewers pivot from conventional pay-TV channels to streaming services. While business performance has been erratic, demand and consumption metrics remain robust, with active accounts and viewing hours on a surge.
Roku has withstood competition from tech behemoths and continually innovates with initiatives like developing its television sets, expanding into new markets, and enhancing its original content offerings. Furthermore, the company stands to gain from the upsurge in ad-supported subscriptions in the streaming sphere with platforms like Netflix and Amazon featuring ad-based tiers.
Although Roku’s stock has declined over 80% from its pandemic peak and nearly 50% from its November high, current levels depict potential for robust returns, especially upon reaching a pivotal phase in its business model.
Seizing the Future: MercadoLibre
Closing the trio, MercadoLibre (NASDAQ: MELI) emerges as a formidable contender to propel a $250,000 investment to $1 million. The Latin American e-commerce giant has forged an impressive array of competitive advantages akin to e-commerce mammoth Amazon.
Its e-commerce operations incorporate both direct sales and a third-party marketplace, while its extensive fintech arm, Mercado Pago, enhances ties with merchants and consumers. The company’s logistics division, Mercado Envios, introduces an additional revenue stream from e-commerce transactions.
Moreover, MercadoLibre strategically advances into high-margin revenue avenues like advertising and credit, augmenting its core business. Noteworthy is the company’s remarkable revenue surge amidst a period when most e-commerce entities grappled with post-pandemic repercussions. Reaping an 83% revenue increment in the fourth quarter on a currency-neutral basis, strong e-commerce and digital payments growth contributed significantly.
If MercadoLibre sustains its rapid growth trajectory in the ensuing decade, a swift fourfold rise in stock value is plausible, transforming $250,000 into $1 million.
Conclusion: Navigate Your Investment
As you ponder delving into The Trade Desk, weighing the following is prudent:
The Motley Fool Stock Advisor team has pinpointed what they deem the 10 best stocks for current investment potential… with The Trade Desk notching a spot. These selected stocks harbor the promise of hefty returns in the ensuing years.
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