One of the mantras of success in conventional or online stock trading is to have a bit of foresight and identify those stocks that could grow astronomically, well over the accepted standard. While such stocks may not always exist, sometimes certain stocks can give you results much more than what is expected within the period.
Usually, the idea is that the stocks will roughly return 7% to 10% per year in the long term. And based on the Rule of 72 if investors wanted to see their initial investment doubled, they’d have to, on average, wait every 7 to 10 years. But the stocks of the following three companies have returned more than 100% in just 52 weeks since they were bought!
GPU Manufacturers NVIDIA and AMD
Among these stocks are manufacturers of graphics processing units (GPU). AMD (NASDAQ: AMD) and NVIDIA Corporation (NASDAQ: NVDA) are the largest GPU manufacturers and are approximately 150% up in the past one year. Credit that to the increasing demand for virtual reality and eSports which has led to graphics being the need of the hour.
Financially, both these companies are not quite in the same boat. AMD has been struggling to be profitable, which is why it is considered more like a turnaround investment. NVIDIA though has taken up a major chunk of the market share, growing from 2014’s 60% market share in add-in board units to nearly 80% towards the end of 2015. From a GPU company, NVIDIA has become more of a platform company offering gaming and VR solutions while also catering to automotive markets.
Both companies have been unanimous in launching new graphics architecture, with AMD’s Polaris following hot on the heels of NVIDIA’s Pascal that was announced in May. Industry tailwinds are set to be favorable, and the stocks of these companies could continue to rise.
Chinese Social Network Weibo
Here’s a Chinese stock that has managed to remain unaffected by the volatility and slipping of the Chinese stock market last year - with the Shanghai Composite Index being down 15% in this period - Weibo (NASDAQ: WB), the Chinese social network. It approximately rose a massive 130% last year.
The factors contributing to this performance by Weibo are attributed to its massive rise in active monthly users. There were 236 million active monthly users reported by Weibo in its annual filing in December 2015, which was a 34% rise from the 175.5 million users reported by the company a year earlier in December 2014. 83% of these users also used their mobile devices to access Weibo in 2015. As a result, 63% of the company’s revenue from marketing and advertising came from mobile, which had high growth.
Another contributory factor attributed to Weibo’s success is Chinese ecommerce company Alibaba’s rumored plan to acquire Weibo in the past year. This rumor came about in spite of the company already owning around 30% of Weibo. With Weibo in your portfolio, you can look to benefit from stock growing as a result of greater Internet activity from China’s growing and ambitious middle class.
When trading stocks online, success depends on foresight as well as technology. At TradeZero we offer both. Give us a call at +1 954-944-3885 or email us at email@example.com.
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