For well over a century, stocks have been investors’ best bet for creating life-changing wealth. While the stock market won’t outperform housing, gold, or bonds every year, it has generated the highest average annual return in the last century.
However, the dominance of equities has been severely tested in recent years by the emergence of crypto-currencies. Many of the most popular digital tokens have passed the benchmark S&P 500 several times. Arguably this accusation is the last coin Shiba inu (CRYPTO: SHIB).
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Shiba Inu soared, but it’s all bark and no bite
Since its debut on August 1, 2020, Shiba Inu has seen its SHIB tokens rally (drum roll) at nearly 8,300,000%, based on a price of $ 0.00004231 per token, as of October 25. This rally pushed Shiba Inu to No.12 place in market value among more than 13,000 cryptocurrencies.
There is no specific reason for SHIB’s breathtaking returns. It seems to be a combination of:
- Tweets from Elon Musk, who recently adopted a Shiba Inu dog named Floki.
- The launch of the decentralized exchange ShibaSwap in July, which could encourage investors to hold their coins longer.
- The fear of missing out (FOMO) after seeing the SHIB rally to more than 8,000,000% in less than 15 months.
- The launch of SHIB on a number of well-known crypto trading platforms.
While Shiba Inu has, so far, been unstoppable, the story (and half a dozen digits) would suggest a massive correction and may not have resistance.
For example, SHIB has virtually no use on a cryptocurrency exchange. The Cryptwerk online business directory notes that less than 100 merchants are willing to accept SHIB tokens as a method of payment. It’s embarrassing for the 12th largest cryptocurrency in the world.
Equally disturbing, the data of the main crypto exchanges and ecosystem Coinbase shows that the typical detention time for Shiba Inu is only 16 days. Such a low figure suggests that day traders and momentum hunters are in the driver’s seat, meaning there is little real conviction in SHIB’s long-term outlook.
And, of course, we must not forget that Shiba Inu offers no competitive advantage. There is nothing particularly special about its processing time or transaction fees that will make it stand out in the payments space.
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These supercharged stocks may crush Shiba Inu by 2026
All of these shortcomings lead to one conclusion: SHIB’s long-term outlook is poor.
Instead of making your money work in a supercharged coin with no future, I suggest investing in the following four supercharged stocks, all of which may revolve around Shiba Inu over the next five years.
Airbnb
A branded company with supercharged growth potential that can let Shiba Inu eat its dust is the living and accommodation platform. Airbnb (NASDAQ: ABNB).
What makes Airbnb so special is its efforts to completely disrupt the traditional hospitality and travel industries. Stay bookings have climbed over 400% in the three years ending December 31, 2019, and it now has over 4 million owners offering their properties for stays on the platform. In general, Airbnb stays are cheaper, more convenient, and offer more privacy than traditional hotels.
Interestingly, the company the fastest growing segment is long-stay, which are defined as rental periods of at least 28 days. As the workforce becomes more mobile in the wake of the pandemic, these high-margin long-stayers could become Airbnb’s main growth engine.
In addition to challenging the hospitality industry, the company’s Experiences segment aims to redefine what travelers do away from home. By partnering with local experts and businesses, Airbnb can increase sales beyond stay bookings.
He’s a real disruptor who should have no problem outdoing Shiba Inu.
Image source: Getty Images.
Ping Identity Holdings
Another supercharged growth stock that has the potential to circle Shiba Inu in the next five years is Ping Identity (NYSE: PING).
Ping Identity is a cybersecurity stock focused on identity verification solutions. The company’s cloud platform leverages artificial intelligence to become smarter and more efficient at identifying and responding to potential threats over time. It works in conjunction with on-premise security solutions to provide more in-depth monitoring once users have gained access to sensitive data.
The advantage of cybersecurity is that it has become a basic service. No matter how well the US economy performs, hackers and bots aren’t taking a day off. This means Ping should expect double-digit growth.
In addition, Ping Identity benefits from the Juicy margins that come with subscription income. Between its fixed-term license subscriptions and its much faster growing Software as a Service subscription, Ping has consistently generated a gross margin of 85% or 86%.
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The facade of Planet 13 SuperStore in Las Vegas. Image source: Planet 13.
Planet 13 Holdings
Cannabis stocks are also much more likely to show investors that green over the next five years than Shiba Inu. Specifically, the US multi-state operator (MSO) Planet 13 Holdings (OTC: PLNH.F) has all the tools needed to make circles around SHIB.
To state the obvious, the United States is the place to be when it comes to growing cannabis. Marijuana-focused analytics company BDSA predicts a compound annual growth rate of 14% through 2026, leading to more than $ 47 billion in annual weed sales in the United States. This represents about three-quarters of estimated global sales of legal weed in five years.
What makes Planet 13 such an amazing stock to buy is his focus on the cannabis experience. While most MSOs open dispensaries in as many states as possible, Planet 13 only has two retail outlets. However, these places are unique. The Las Vegas SuperStore spans 112,000 square feet (that’s more than the average Walmart) and features a consumer processing center, event center and café. Meanwhile, the Orange County, Calif., SuperStore will expand to 55,000 square feet when completed.
There isn’t a pot stock on the planet that can offer cannabis enthusiasts the experience or selection of Planet 13. With a handful of other select tourist-heavy markets in the United States, Planet 13 is on track for recurring profitability.
Image source: Getty Images.
Lovesac
Fourth and finally, furniture company Lovesac (NASDAQ: LOVE) is a supercharged small cap stocks that may be circling around Shiba Inu by 2026. And yes, you read that right: I think a stock of furniture will surpass a trendy digital currency.
The first thing to understand about Lovesac is that it’s not like a traditional furniture company. Its outperformance will be based on a combination of innovation, respect for the environment and its omnichannel presence.
While Lovesac was once known for its poufs (called bags), the company now generates almost 85% of its revenue from sactionals. They are modular sofas that can be rearranged in dozens of ways to fit any living space. Sactionals have around 200 different blanket choices, all of which are easily washable and give buyers the flexibility to match any color scheme or furniture theme in a home. Perhaps best of all, the yarn used in these covers is made entirely from recycled plastic water bottles. This combination of functionality, choice, and eco-friendly design really resonated with the company’s primary customer, Millennials.
Lovesac is also distinguished by its success in move online sales during the pandemic. While traditional furniture businesses depend on foot traffic in physical stores, Lovesac has relied on in-store partnerships, pop-up showrooms, and online sales to keep its overheads low.
This furniture stock could easily put SHIB in the niche over the next five years.
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Sean williams owns shares of The Lovesac Company. The Motley Fool owns and recommends Airbnb, Inc., Ping Identity Holding Corp and Planet 13 Holdings Inc. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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