You can probably think of dozens of ways to use the $ 1,400 stimulus payment that is on the way for most Americans. If you don’t have enough money to pay your bills or don’t have an emergency fund set up, these items should be at the top of your list.
But many Americans have these important bases covered and are looking for the best way to make money from Uncle Sam’s extra money. If you are in that group and your stimulus is already verified, buying these three stocks would be a brilliant move to make.
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Cresco Labs
Investing in marijuana stocks may seem like a crazy way to use your $ 1,400. And for many cannabis stocks, it would be. I think, however, that buying shares of Cresco Labs (OTC: CRLBF) it would be a crazy and smart decision.
On the one hand, Cresco is already profitable – unlike most cannabis companies. It is also generating impressive revenue growth, with sales skyrocketing by 63% quarter-on-quarter in the third quarter. I expect another big update when Cresco announces its fourth quarter results next week.
Cresco’s assessment also looks very attractive compared to its peers. The shares trade at a much lower price-per-sale multiple than other multistate cannabis operators in the United States.
Most importantly, the company’s growth prospects are enormous. Cresco recently started selling in Arizona’s new recreational marijuana market and is planning to acquire Bluma Wellness to expand into Florida’s thriving medical marijuana market. Cresco also already operates medical marijuana dispensaries in New York, a major state that is likely to legalize recreational marijuana soon.
PayPal Holdings
The COVID-19 pandemic has hurt many companies. But it only added fuel to the fire to PayPal Holdings (NASDAQ: PYPL). Coronavirus-related blocks spurred an increase in online purchases, causing PayPal’s revenue to skyrocket in 2020.
Some may fear that as the pandemic draws to a close, PayPal’s business may suffer. I do not. My view is that the company will continue to have solid growth in e-commerce. I also hope that PayPal will gain an increasing momentum, as traditional retailers support its QR code functionality.
Better yet, PayPal’s Venmo digital wallet app just keeps getting better and attracts more users. The company recently launched a Venmo credit card. In the second quarter of this year, PayPal is launching its “Pay with Venmo” feature, which supports what the company calls “the best checkout experience in its category” for in-store purchases.
PayPal is also acquiring Curv, an Israel-based digital asset security provider. This deal will strengthen the company’s cryptocurrency capabilities. My prediction is that the cryptocurrency will become a significant growth driver for PayPal in the coming years.
The Trade Desk
The Trade Desk (NASDAQ: TTD) belonged to the large group of companies that felt the pandemic sting last year. The company, which provides a software platform that allows advertisers to buy digital ads quickly and easily, has experienced a slowdown as advertisers cut their marketing spend.
More recently, The Trade Desk’s shares plummeted after AlphabetThe Google subsidiary has announced plans to eliminate ad tracking cookies. This change would limit the amount of data that companies like The Trade Desk can capture and potentially make their services less attractive to advertisers.
So, why invest in The Trade Desk? Even with the pandemic, advertising spending on the company’s platform reached record levels last year. Investors should also not be concerned about Google’s move. The Trade Desk predicted that cookies would disappear sooner or later. It even launched an alternative to cookies, Unified ID, in 2018.
Probably the most important reason to buy The Trade Desk, however, is the explosion of connected TV (CTV) – television connected to the internet. CTV is transforming the advertising industry. And cookies are irrelevant, since CTV does not rely on browsers.
I think the Trade Desk remains in an excellent position to profit from the CTV boom. Using your stimulus check to buy shares in these stocks is likely to pay off in the coming years.
This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a premium Motley Fool consulting service. We are heterogeneous! Questioning an investment thesis – even our own – helps all of us to think critically about investing and making decisions that help us become smarter, happier and wealthier.