The stock market has grown at a breakneck pace over the last 18 months. The S&P 500 Index has doubled in value since mid-March 2020. The bull market may continue despite some lingering concerns about supply chain issues.
For example, analysts predict that the powerful e-commerce hub and up-and-coming cybersecurity business will see significant share price increases in 2021 and beyond.
Amazon (NASDAQ: AMZN), which is valued at nearly $1.7 trillion and expected to generate $367 billion in revenue in 2020, is expected to increase sales by nearly 17% annually over the next five years. If the company continues to grow at this rate, it will reach $1 trillion in annual revenue in just one year.
The company’s net income was nearly double that of 2019, at $21 billion, and analysts predict it will quadruple in the next five years. Amazon has grown into an unstoppable force, and while its retail business is the most visible aspect of its growth, it is not the only one.
Amazon Web Services (AWS), the company’s cloud computing division, is the undisputed leader in cloud infrastructure, with the largest market share, thanks to its e-commerce operations, which are the most popular online shopping destination in North America.
Based on the first six months of 2021, AWS expects full-year revenue of more than $56 billion, a 33 percent increase over last year. Despite accounting for only one-eighth of total sales, Amazon’s operating cash income is significant. It is Amazon’s most profitable segment, accounting for 59 percent of total revenue.
Amazon will also account for $4 of every $10 spent online in the United States this year, according to eMarketer. Because of these and other factors, Wall Street analysts have set an annual average target price for Amazon of $4,177 per share, which is more than 22% higher than where it currently trades. The e-commerce behemoth should be near the top of any investor’s list of growth stocks to consider.
According to industry experts, data breaches in 2021 could set new records; over 280 million people’s data was compromised in the third quarter of the year. That’s why Crowdstrike (NASDAQ: CRWD) is such a vital company and an excellent stock to add to your portfolio.
Crowdstrike’s technology employs advanced artificial intelligence, behavioral analysis, and machine learning to detect and prevent cybersecurity threats, with its Falcon platform processing trillions of events each week. More importantly, the platform becomes smarter and more efficient as it processes more data, allowing it to detect and respond to potential threats faster.
Its company is rapidly growing. Crowdstrike’s subscriber base has grown from 450 to over 13,000 in less than five years. The company’s subscribers have almost all renewed their subscriptions.
Crowdstrike relies heavily on Falcon because cloud-based cybersecurity solutions are frequently more efficient and cost-effective to operate than on-premises security solutions.
Wall Street recognizes the value of a cloud security pioneer. According to analysts, Crowdstrike’s revenue will grow at a 37 percent annual rate over the next few years, bringing it from an operating loss of $87 million last year to a profit of $977 million by 2026. Earnings per share will increase by 73 percent annually over the next five years.
The fact that our personal and corporate information is extremely vulnerable to hackers is an unfortunate fact of modern life, but it also means that cybersecurity firms like Crowdstrike will be inundated with requests for technical assistance in order to protect that information.