When you buy a stock, the worst thing that can happen is that you lose 100% of your investment. Of course, that’s not a great outcome, but the downside is smaller than the upside. In other words, when you buy a stock, the upside…
doesn’t stop at 100%. Your initial investment could grow multiple times in value, transforming even a small sum of money into life-changing wealth.
With that in mind, both of these tech companies look like monster stocks in the making. Here’s what you should know.
1. Global-E Online
Global-E Online (NASDAQ:GLBE) may be an unfamiliar name for many investors, but this e-commerce company provides a valuable service. Specifically, Global-E simplifies and accelerates cross-border sales, helping merchants grow their businesses in international markets.
To do that, Global-E integrates with digital storefronts, localizing the language, currency, and shipping options on a market-by-market basis. Its software already supports integrations with the most popular digital payments and commerce platforms, including PayPal, Salesforce‘s Commerce Cloud, and Adobe‘s Magento. And the company recently formed an exclusive partnership with Shopify, the most popular e-commerce software vendor in the U.S.
But localizing web content is only half the battle. Global-E also helps merchants navigate the regulatory complexities (e.g., taxes, import duties) associated with international sales, and it provides after-sale customer support and returns management. In short, Global-E is an end-to-end solution for cross-border commerce.
That’s a big deal. By optimizing web content for international buyers, Global-E boosts conversion rates for sellers, often in excess of 60%. And that value proposition has helped the company grow rapidly. Over the last 12 months, Global-E facilitated 6 million transactions, totaling $1.1 billion in gross merchandise value (GMV), which has translated into strong top-line growth.
Since 2018, Global-E has kept its gross retention above 98%, meaning less than 2% of customers cancel service. The company has also kept net retention above 140%, meaning the average customer spends 40% more each year. Both of those metrics evidence the value that Global-E creates for its clients.
Looking ahead, Forrester Research puts the global e-commerce market at $736 billion by 2023 — over 600 times Global-E’s GMV over the last 12 months. That’s why this looks like a monster stock in the making.
Upstart (NASDAQ:UPST) is a fintech company that aims to improve access to affordable financing. Traditionally, banks have relied on credit scores to determine who qualifies for a loan and at what interest rate. But the idea that a three-digit number — calculated using just 12 to 20 variables — can reliably identify risk is an antiquated notion. Consider this: Would you feel comfortable lending your money to a stranger if you could only ask them 20 questions?
To modernize the system, Upstart takes a novel approach to…
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