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Gone are the days when you need to have saved enough money to buy at least a single share in a common stock. Nowadays, investors can buy partial shares of common stocks commission free on Wealthsimple! This makes it simple and easy to build a diversified growth stock fund. It means you can invest as much or as little as you can afford to.
Capital tightening from higher interest rates have triggered a selloff in many growth stocks. It could be a good time to accumulate shares if you have a long-term investment horizon.
Nuvei (TSX:NVEI) is a payment technology partner its clients can rely on. Its customers can grow with its offerings of modular, flexible, and scalable solutions. Nuvei provides access to more than 200 markets, with local acquiring in 47 markets, 150 currencies, and 586 alternative payment methods, which support client growth locally or globally. Leading brands like New Balance, General Motors, WestJet, Riot Games, Bumble, etc. use Nuvei’s technologies.
The company has reported its results for the first nine months of 2022 so far. Revenue increased 22% to US$623 million, which was negatively impacted by a stronger U.S. dollar against other currencies. Based on constant currency, revenue growth would have been 27%.
The business stayed profitable, but its net income in the period fell 44% to US$52.6 million primarily due to an US$83.4 million increase in share-based payments. On a per-share basis, it was a drop of 47% to US$0.34. Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization), a cash flow proxy, rose 18% to US$265.6 million. Adjusted earnings climbed 16% to US$206.2 million. Adjusted earnings per share rose 14% to US$1.39. Accounting for capital expenditure, adjusted EBITDA still climbed 11% to US$231.8 million.
The general analyst consensus across eight analysts believes Nuvei stock is on sale with a substantial discount of over 50% at $34.41 per share.
MicroStrategy (NASDAQ:MSTR) has a big bet on Bitcoin. On December 28, it acquired another 2,500 BTC, increasing its holdings to 132,500 BTC, which is worth about US$2,213,293,250, as BTC is priced at US$16,704.10 at writing.
Other than that, the company also reported operating income of US$15.75 million in the trailing 12 months. Still, MSTR stock is bound to move with the changes in Bitcoin prices. Investors could be in for a wild ride, as some believe BTC still has downside to as low as US$9,000.
Surely enough, MSTR stock appears bearish, trading at below its 20-day and 50-day simple moving averages, although it is oversold trading at a Relative Strength Index of about 30.
MicroStrategy is a high-risk stock whose stock price is highly dependent on the value of Bitcoin, which some investors believe should be worth way more as fiat currency values have gone down with high inflation. Yahoo Finance displays three analysts cover the stock with an average 12-month price target of US$477.33, which suggests the potential to triple one’s investment.
The Foolish investor takeaway
Although MicroStrategy stock trades at north of $100, you can buy less than $100 if you want on Wealthsimple. The idea is to build a diversified growth stock portfolio with the intention of holding five to 10 years for strong growth potential.