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Investing For Growth: 3 Hot Tech Stocks To Watch

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Just a few weeks ago, Apple became the first-ever trillion dollar company. And Amazon could be next, with a projected $2.5 trillion (!) market value by 2024.

Not long before that, Amazon CEO Jeff Bezos became the richest man in modern history. (Homeboy’s sittin’ pretty on a $150B net worth—an insane $55B more than Bill Gates at number two!)

Yes, yes, the [AAPL] and [AMZN] gravy trains have already left the station. However you can still find some growth gems if you know where to look.

Here are three red-hot tech stocks you should pay attention to.

(Editor’s note: If you’re not investing, download Robinhood here, collect a free stock, and start trading—also free.)

1. Okta

Okta [OKTA] is a San Francisco-based cloud security firm that does “identity management services.” So in layman’s terms, this means stuff like multi-factor authentication, API access management, network integration—things like that.

Okta shares have been on fire as of, jumping an impressive 116% in 2018—and seemingly for no apparent reason. The cloud security firm has solid partnerships with Facebook and VMware, creating a robust foundation for growth.

The Upside

Even though Okta has yet to turn a profit, analysts are bullish on the cloud stock. They expect revenue to jump 37% year-over-year to $356.5M in fiscal 2019, 32% to $471M in fiscal 2020 and 41% to $665M in fiscal 2021.

The Verdict

In addition, earnings are expected to improve by 27% in 2019 and 39% in 2020.  Analysts have an average price target of $61.1 for Okta, leaving an additional 4.4% room in growth upside for the stock.

Current price: $58.51
Analyst high target price: $65
2018 growth: 128%

Related: ANALYSIS: 7 Tech Stocks You Might Want To Avoid

2. iRobot Corp.

iRobot [IRBT] designs and manufactures robots primarily for homes. (Here’s an example what one looks like.) After posting yearly revenue jumps, the robot manufacturer’s has expanded their list of products to keep up with the growth. It now includes cool stuff like robot maps to more useful products like pool cleaners and robot vacuums.

iRobot shares took a hit in April this year when news broke that Amazon is working on robots for the home.

The Upside

And while iRobot does face some competition, the stock still has some upside.

For one, iRobot is investing heavy in research and development to build new product lines and maintain market share in the home robotics market.

As of August, the stock is up close to 38% this year. And there could be more to come.

The Verdict

Analysts expect the firm’s revenues to see steady growth at around 20% a year until 2020. Unlike many tech companies, iRobot Corp is already profitable. In addition, its earnings are estimated to grow by 28% next year.

Current price: $105.6
Analyst high target price: $106.16
2018 growth: 
38%

3.Roku 

Credit: Roku.

Roku [ROKU] is a video streaming subscription service, just like Netflix. With over 22M subscribers, Roku’s one of the largest content distribution companies in the United States.

While the OTT space has attracted heavyweights like Apple TV, Chromecast, YouTube and Amazon’s Fire Stick, Roku’s as reliable an OTT option of any, partnering with one out of five Smart TV’s in the US.

According to a recent survey by research firm William Blair, Roku’s adoption rate (meaning people who start using it) is up eight percentage points from last September. The only other competitor with similar growth was Amazon.

(Chromecast didn’t improve at all, while Apple TV grew just three percentage points.)

The Upside

Shares of Roku have risen over 16% in 2018. The company has been able to beat earnings and revenue estimates in three of the last four quarters that has driven its stock price upwards.

As far as content, the company has a catalog of over 5,000 channels, a low subscription price point, and it has potential growth in emerging markets as well much like Netflix.

The Verdict

Altogether, OTT revenue is expected to almost double from $46.5 B in 2017 to $83.4 B in 2022. According to analysts, expect Roku revenues to rise by an average of 35% year-over-year over the next three years.

Despite this growth, Roku hasn’t turned a profit yet, but they’re not far behind. Analysts expect earnings to surge by 94% in 2018—leaving plenty of promise for future scores. (If we’re to believe Wall Street.)

Current price: $60.09
Analyst high target price: $68
2018 growth: 
16%

Word to WealthLABBERS: Analyst target prices in this piece come from Yahoo Finance and are merely estimates of future performance. They are NOT a historic predictor of future results.

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CNBC: Here’s Why WeWork Wants To Go Public

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News broke recently that WeWork’s going public in September. In this video, CNBC breaks down why they’re going public.

Before you watch, though, here’s some context.

WeWork’s recent S-1 filing — the paperwork you file with the SEC right before you go public — had the entire internet up in arms, including ourselves, trying to decode how the heck WeWork justifies its insane valuation.

Related: Inside WeWork’s $20B Valuation: Is It Really Worth It?

Considering, ya know, IWG, a direct competitor, has nearly double the revenue, five times the members, is $2.5B ahead on the bottom line and…well, you can sort of see where this is going.

Despite earning an insane $47B valuation this year, it’s bleeding dough. Yes, WeWork grossed $1.8B in 2018…but it also lost $1.9B.

Be that as it may, WeWork is going public this year (via parent company “The We Company”), the latest in a string of high-profile tech IPOs in 2019.

And speaking of tech. Despite numerous “tech” mentions in the S-1, critics are claiming WeWork is little more than a real estate company.

As far as the We losses go, CFO Artie Minson told CNBC that investors need not worry about those grim financials, but instead to look at WeWork’s losses as “investments” that will lead to greater cash flow. (Which is very possible.)

And even if short-term losses eventually unearth long-term cash flows, will they be enough to justify its lofty valuation…and even loftier ambitions?

While we’re waiting for time to tell on WeWork’s future, if you’re looking to raise your startup game right now, go check out our content partner More Labs’ brand-new drink Aqua+. (Yes, the same More Labs behind this drink that broke the internet.) 

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Video: Compound Interest, Explained

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A UPS worker never made more than $14,000 a year but retired with $70 million. How? Compound interest. Here’s how it works, courtesy of Investopedia.

 

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3 Ways To Invest From Your Smartphone For Under $5

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The numbers say 80% of millennials don’t invest in stocks.

Reason? Half say they don’t have money, one-third says it’s too early and another third says they don’t know how.

In addition to that, there’s demographic gap. “The average age of a financial advisor is 55,” said Douglas Boneparth, a New York City-based financial planner. “There are more financial advisors over the age of 70 than there are under 30.”

Despite these beliefs, you don’t really need much money, nor experience, to get started. (Just look at our fearless co-founder Odunayo Eweniyi and what she’s pulled off here)

Be that as it may, here are three ways to get started for $5 or less.

1. Stash

Image result for stash app

What: A micro-investment app (iOS and Android) with over 30 ETFs according to industry, sector and risk tolerance.

How it works: Download the app and choose your investment.

Minimum investment: $5

Cost: Fees range from $1 a month for accounts under $5,000 to 0.25% a year.

“We help people who don’t have a lot save money on a weekly basis,” CEO and co-founder Brandon Krieg said in one interview. “Stashers look like America, they look like people you meet every day: they are nurses and teachers and Uber and Lyft drivers.”

2. Acorns

 

What: iOS and Android app.

How it works: Download the app and choose one of six index funds. When you buy, say a cup of coffee for $1.75, it rounds up the change to $2 and deposits the difference.

Minimum investment: $5

Cost: Just like Stash, fees range from $1 a month for accounts under $5,000 to 0.25% a year.

“We’re not trying to preach austerity to the client, because that’s a bummer,” CMO Manning Field says. “Some people will say, ‘Don’t have the cup of coffee.’ We’ll tell you to have the cup of coffee and invest along the way.”

3. Robinhood

What: A commission-free investment app (iOS and Android).

How it works: Download and start buying stocks.

Minimum investment: Whatever stock you want to buy.

Cost: Free.

And by the way, if you want to get a fast start on real estate, here’s Forbes’ list of nine REITs with yields between 8% and 10%.

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