Where to invest $ 500 this week
The market continues to experience its fair share of tumultuous days as concerns grow about the impact of rising inflation, the current labor shortage and the crisis in the supply chain. If you’re looking for great investments that you can count on for years to come, then these two actions are for you.
Today I’m going to talk about two great companies that you can invest in even with a smaller starting amount like $ 500. Not only do both stocks stand out in fast-growing markets, but I firmly believe that they can provide significant growth and value to the portfolio over the next five to ten years, if not longer.
Airbnb (NASDAQ: ABNB), like most other companies operating in the travel industry, had a hard time when the pandemic struck. Although the pandemic had an impact on the company’s balance sheet, it did not diminish the quality of its business model or its potential for long-term growth. Like other travel agencies like airline actions still suffering from bleeding losses, Airbnb has proven its ability to bounce back from the darker days of the pandemic in the two quarterly reports it has released so far for 2021.
Airbnb’s rapid financial recovery (which we’ll look at in a moment) is remarkable in today’s travel environment. Especially since the pandemic seems far from over and new contagious variants continue to appear. This is in part due to Airbnb’s business model. Whether you want to stay in a secluded cabin in Oregon, an apartment in a castle in the Alps (yes, that’s one thing), or a short to long term rental in the city of your choice, Airbnb has options for every kind of traveler. And despite the fact that global travel activity is not expected to return to pre-pandemic levels until mid-decade, chances are that if you travel now, you will feel more comfortable doing it. do in an Airbnb than at the hotel. Keep in mind that Airbnb already controlled a 20% share of the vacation rental market before the pandemic.
So how did Airbnb fare in 2021? Well, in the first quarter, its revenue grew 5% year over year, and was actually higher than Airbnb’s reported revenue in the first quarter of 2019. The company also reported a total net loss and a net loss of adjusted EBITDA of $ 782 million. and $ 59 million, respectively. However, it should be noted that Airbnb’s Net Adjusted EBITDA loss declined significantly compared to Q1 2020, when this metric was negative by $ 334 million.
Airbnb blew Wall Street expectations in the second quarter. Not only did the company’s revenue jump 300% year-over-year, but it also broke its adjusted EBITDA back to $ 217 million. And while the company’s bottom line is still negative, it reduced its net loss to $ 68 million, a far cry from the $ 507 million in the second quarter of 2020. Additionally, Airbnb reported that Nights and Experiences booked on its platform and that the gross value of bookings jumped 197% and 320%, respectively, from the period of the previous year. Investors should watch Airbnb’s third quarter earnings report on November 4.
Airbnb shares are only up about 20% from its public debut last December. I think this reflects a consensus among many investors on the long coming recovery for the global travel industry. Analysts still believe the stock could reach a rise of more than 30% in the next 12 months alone. Airbnb also has huge market opportunities to explore in the years to come as the global recovery continues, the dynamics of the travel industry change, and more people seek flexible and freelance jobs in the world. ‘site. All of this presents a great opportunity for long-term investors to buy discounted Airbnb shares now and be part of the company’s long-term growth story.
2. Innovative industrial properties
Innovative industrial properties (NYSE: IIPR) comes from an entirely different industry than my previous choice. Investing in marijuana stocks can be a fantastic way to boost your portfolio returns, but not all companies that trade in this industry offer quality companies that justify long-term investments. Innovative Industrial Properties is one of my all-time favorite cannabis stocks, however, for several reasons.
The company is a real estate investment trust (REIT) that leases its portfolio of business facilities only to publicly licensed medical marijuana growers. This gives the company some measure of protection and resilience in the often volatile world of marijuana stocks – first because medical marijuana is legalized in more states than recreational use and is more widely regulated, and secondly because it does not face the same level of risk or competition that a traditional producer does.
Since the company is a REIT, it must allocate at least 90% of its taxable income to its shareholders in the form of dividends. Not only is the company steadily increasing its dividend (the most recent increase was 28%), its dividend is also yielding a solid 2.3%. The average share price on the S&P 500 yields around 1.3%.
Innovative Industrial Properties also steadily expands its portfolio through targeted acquisitions in key medical marijuana markets. Example: In recent months, he announced acquisitions in California, Missouri and Maryland.
All of this is paying off in the form of massive revenue and profit growth, which also means increased dividends for shareholders. In the second quarter of this year, the company announced that its revenue increased 101% from the previous year, while its adjusted revenue operating funds (AFFO) and net income jumped 104% and 124% year-over-year, respectively. With stocks rising over 110% in the past year alone, this high-growth pot stock is an obvious investment to jump on right now.
This article represents the opinion of the author, who may disagree with the “official” recommendation position of a premium Motley Fool consulting service. We are motley! Challenging an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.