We’re living in a brave new world where the internet rules and millennials have killed every industry that couldn’t adapt or keep up.
Look no further than the explosion of companies like Uber that managed to destroy the once-invincible taxi industry almost overnight….
Its success comes from a few key advantages – it’s fast, it’s easy, and it’s cheap.
The sharing economy is not just another buzzword - it’s now a huge part of the way the world works.
Generational priorities have shifted. Millennials aren’t just industry killers; they’re building entirely new industries from the ground up.
And when a company checks all the boxes: fast, cheap, easy, novel, and eco-friendly, it can mean BIG money for investors.
So how do you identify the next big success story in this burgeoning new industry?
Good news. We’ve already done some of the heavy lifting for you.
Here are 5 companies leading the sharing economy race:
#1 GrubHub (NYSE:GRUB): Delivery on Demand
A quick google search of which sharing economy stocks are hot and have investors buzzing will quickly reveal that GrubHub reigns supreme.
In fact, Investors Alley calls it “the quintessential sharing economy stock.” Although GrubHub is already a huge stock with major exposure, it’s certainly not too late to buy in to this food-delivery juggernaut.
GrubHub is continuing to expand rapidly, which is great news to restaurateurs and investors alike. “The company is projected to grow earnings an average 26% per year over the next 5 years.”
In fact, right now is an excellent moment to buy stock in GrubHub when you factor in the fact that GrubHub stock is currently more affordable than it has been in other quarters, with a huge projected growth and a new partnership with Yum! Brands, one of the world’s biggest food sector corporations--they own Taco Bell, KFC, Pizza Hut, just for starters.
GrubHub’s new strategy of establishing partnerships with people in (very) high places guarantees that they will stay at the top of the sharing economy food pyramid, allowing them to keep their competitive edge over copycats like Doordash and UBER Eats. if you want to get into the sharing economy with a strong, reliable stock, you just can’t do better than GrubHub.
In the past few years an ultra-fast-growing sector has burst onto the scene of the sharing economy.
It’s a disruptive new industry and it has made fans and enemies in equal measure with its takeover of city streets and legions of devoted consumers.
Even small start-up companies are getting multi-billion dollar valuations. And investors are making out like bandits.
That’s right. We’re talking about scooters. And they’re set to transform part of the $7 trillion mobility industry.
You’ve probably seen shareable scooters popping up in cities everywhere, and you may be one of those who can’t stand them.
But OjO (TSX.V:OJO, OTC:AZNVF) is doing things differently. Seeing the incredible business opportunity offered by the sharing economy, OjO has invested in a better, faster, and more efficient scooter.
Their tech is better, their scooters are safer, cities prefer them to other companies that just drop off their scooters and walk away...and consumers absolutely love them.
Because of their forward-thinking method of recharging the scooters by switching out batteries instead of taking scooters off the streets to recharge them, they’re already set up with a MUCH more lucrative business model than Bird and Lime.
What’s more, they’re building alliances with the cities that they’re established in.
With 10,000 scooters that's $54.8M per year, and OjO has already said that they could have up to 15,000 on the ground by the end of 2020 and even more in the years to come.
So, as you can see, there are MASSIVE projections for this company.
The best news is that they have only just gone public and so most investors aren’t even aware that this opportunity exists!
#3 Lending Club (NYSE:LC): Crowd-Sourced Loans
While GrubHub is the obvious example of a reliable sharing economy stock, Lending Club is for a very different kind of investor.
Fintech stocks are currently an ideal sector for investors who can stomach a fair amount of risk in exchange for high rewards.
The market has backed off of these stocks, including Lending Club, recently, causing The Motley Fool to declare in bold, “The market hates these stocks”!
But what this means to a savvy investor who believes in the future of fintech and sees the direction the economy is taking, moving further and further into a sharing economy all the time, is that Lending Club is considered by some to be undervalued--VERY undervalued.
Already a turnaround is happening.
This week, after months giving a sell rating to Lending Club, Zacks.com upgraded the stock to a hold, saying that there is a “light at the end of the tunnel for this overlooked stock.” Those savvy enough to sense a turnaround would be wise to buy in now.
#4 Booking Holdings (NASDAQ:BKNG): Staying Ahead of the Sharing Economy
By conventional logic the sharing economy should be a big issue for Booking Holdings, which dominates the travel and accommodations sector with a massive market cap of $100 billion.
But instead, Bookings (which recently rebranded the Priceline Group), has stayed well ahead of the game, diversifying its offerings and getting into the sharing economy before Airbnb and Uber were able to take away too much of its business.
“Booking Holdings is a big company, but it continues to expand at a double-digit pace,” affirms the Motley Fool. “It is the global leader in travel and accommodations and has taken steps to embrace the sharing economy and maintain its lead.”
This massive company with a significant advantage in the online travel biz has proven time and again that it’s not too big to be flexible and meet customers where they’re at, making this a great reliable stock for risk-averse investors.
#5 Fiverr (NYSE:FVRR): Online Job Board
This June, Fiverr, a software that connects freelance workers to companies with projects that suit their skills, made headlines with an unbelievable IPO reminiscent of the e-commerce boom of 20 years ago.
In an unbelievable first day, Fiverr stock opened “at $26, 24% above its $21 initial-public-offering price, and kept rising to a close of $39.90, 90% higher than the IPO price.”
Fiverr stock prices have since leveled out, but projections for the company’s future in a fast-growing gig and sharing economy are decidedly strong.
Revisiting the status of Fiverr stock this month, four months after their incredible IPO and first day, Seeking Alpha branded the stock as an “exciting growth play that takes patience.”
Seeking Alpha goes on to report that “As of Q2 2019, revenue has grown by over 40% YoY, better than the expected full year outlook of 36% YoY.” Not bad at all for sophomore quarter slump.
For those seeking immediate returns, a fast-growing company like OjO Electric is a better bet, but for those willing to wait for a solid return on their investment, you could certainly do worse than Fiverr.
Other companies taking on the new sharing economy:
Shopify Inc (TSX:SH, NYSE:SHOP) is a Canadian e-commerce company that has enabled a . More than 500,000 companies rely on Shopify’s real-time e-commerce, including Tesla, Budweiser and Red Bull, among many others. Shopify makes purchasing goods and services easy for anyone – and in a time where convenience is king, Shopify surely has staying power.
In addition to its revolutionary approach on e-commerce, Shopify is also delving into blockchain technology, making it a promising pick for investors, especially given that the sector is red hot right now.
Blackberry Ltd (TSE:BB, NYSE:BB) This well-known cell-phone pioneer is engaged in the sale of smartphones and enterprise software and services. The Company's products and services include Enterprise Solutions and Services, Devices, BlackBerry Technology Solutions and Messaging.
Blackberry used to be a worldwide leader in phones, but Apple, Google and other Android manufacturers have rapidly acquired market share. Blackberry has since focused on software and is now developing systems for autonomous vehicles. Tech giants such as Apple and Google won’t be able to repeat Blackbery’s success in this sector that easily.
Avigilon (TSX:AVO): Avigilon develops, manufactures, markets and sells HD and megapixel network-based video surveillance systems, video analytics and access to control equipment. We expect strong continuous growth in the video analytics business and a company such as Avigilon is well positioned to capture market share in the Canadian markets.
As a key player in the digital security marketplace, it is clear to see why Avigilon made the list. With its technology continuing to move forward, investors can count in Avigilon to provide lasting value.
Pivot Technology Solutions Inc. (TSX:PTG): Pivot focuses on the strategy to acquire and integrate technology solution providers, primarily in North America. It sells and supports integrated computer hardware, software and networking products for business database, network and network security systems.
With the energy sector becoming increasingly vulnerable to cyberattacks, companies like Pivot will see more and more attention from investors over time.
MAXR (TSX:MAXR) is an end-to-end space solutions business. This is about Earth intelligence and space infrastructure. The focus right now is on Earth imagery, geospatial data, satellites and robotics, and NASA is one of their biggest customers, along with the European Space Agency and the UK Space Agency.
There’s also been talk of a billion-dollar buyout, with plenty of reason to put Amazon on that wishlist. And keep in mind that a billion-dollar buyout would be a 67% premium on MAXR current price. It’s extreme--but we’re talking about space.
By. Meredith Taylor
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