The Unstoppable Amazon Phenomenon
Amidst the whirlwind of unpredictability that is Wall Street, the Nasdaq Composite (NASDAQINDEX: ^IXIC) has emerged as a beacon of innovation. After a tumultuous 2022 bear market where the Nasdaq lost a significant chunk of its value, 2023 witnessed a remarkable 61% surge, propelling the index to several record highs. In the realm of growth stocks, Amazon (NASDAQ: AMZN) stands as a colossus that investors dare not overlook.
While the fear of investing at the pinnacle of a bull market looms large, history teaches us that every market downturn has eventually been swept away by the tide of a resurgent bull market. For the discerning long-term investor, opportunities abound even as the Nasdaq scales new heights.
Amazon isn’t merely an e-commerce giant capturing a substantial portion of U.S. online retail sales; it’s a strategic juggernaut with diverse income streams. Amazon Web Services (AWS), the premier cloud infrastructure service globally, continues to dominate with a 31% market share. The recent milestone of surpassing $100 billion in annual run-rate sales is a testament to the boundless potential of enterprise cloud spending.
Buoyed by its stalwart performances in advertising and subscription services, Amazon’s allure remains steadfast. With shares trading at a discount compared to past valuations and incessant growth momentum, Amazon exudes an air of inimitable resilience.
The DocuSign Dilemma
Embracing the nascent bull market with zeal, electronic-signature giant DocuSign (NASDAQ: DOCU) emerges as a compelling choice for investors seeking unparalleled growth. Speculations of a potential buyout have given way to CEO Allan Thygesen’s commitment to keeping the company public, much to the chagrin of short-term traders but to the delight of long-term aficionados.
DocuSign’s impenetrable moat in the e-signature domain, commanding a dominant 67% market share according to Datanyze, underscores its unassailable position. Despite a temporary deceleration in e-signature growth post-pandemic, the long-term trajectory remains promising for the global e-signature software market.
With a robust balance sheet bolstered by the recent repayment of convertible debt, DocuSign boasts a substantial cash reserve poised for strategic expansion. The acquisition of Lexion, an AI-driven agreement-management software firm, manifests DocuSign’s commitment to fortifying its suite of services and unlocking new avenues for growth.
Unveiling Unmatched Growth Stocks in the Nasdaq Bull Market
Green Thumb Industries: A Unique Player in the Cannabis Market
A gem among the growth stocks, Green Thumb Industries (OTC: GTBIF) shines bright with a forward price-to-earnings (P/E) ratio of 16, a steal for a growth stock with a sturdy moat.
Among the buzz surrounding marijuana stocks, the potential rescheduling of cannabis to a less-restrictive Schedule III controlled substance by the U.S. Drug Enforcement Administration is on the horizon. This change could significantly benefit cannabis-touching businesses like Green Thumb by easing tax burden under Section 280E of the U.S. tax code.
Green Thumb’s strategic focus on derivatives, contributing to 57% of its sales, sets it apart in the market. These products offer higher prices and better margins, fueling the company’s profitability. With a strong presence in key cannabis states and a plethora of retail licenses, Green Thumb is poised for further expansion.
Visa: The Unrivaled Payment Processor
Another standout in the new Nasdaq bull market is Visa (NYSE: V), a payment processing giant with enviable competitive advantages. Despite cyclical headwinds seen in the market, Visa stands strong due to its prolonged growth periods during economic expansions.
By steering clear of lending and focusing solely on transaction facilitation, Visa shields itself from credit risks during economic downturns, a strategic move that bolsters its stability in the financial sector. The company’s extensive growth potential includes expanding payment infrastructure into underbanked regions worldwide.