Although investing in equities is so often about “playing the long game”, there comes a time when investors may have to consider changing trading tactics and look at different markets. This year looks towards a range of opportunities in stocks with high growth potential, despite the ongoing economic headwinds. The US stock markets contain some of the world’s most exciting equities that are looking to push the boundaries of new technologies and innovate existing ones too.
Even if you live in the UK, it’s possible to assess the Nasdaq-listed stocks that have the potential for high growth this year and consider which could be worth investing in. Several platforms offer multiple types of share dealing accounts in the UK, with the ability to invest in equities listed on the London Stock Exchange as well as those in North America and beyond. When you compare share dealing platforms, you will see different price structures, with some providers offering the ability to buy fractional shares. Some providers will offer apps, while others will have their websites optimized for mobile usage.
Some of the growth stocks listed below have fast-expanding market caps, but there’s still plenty of time to get involved and build a truly global portfolio of investments in equities across the US and Europe. It’s still worth considering that with any investment, there remains an element of risk, and depending on the state of the market, expectations may move against you.
1. Nio
Chinese electric vehicle (EV) manufacturer Nio starts us off in this quintet of stocks with immense growth potential. Listed on the NYSE, it is trying hard to ramp up its production of EVs to cement itself firmly in the mainstream. Bold manufacturing targets of delivering 600,000 new EVs by the end of 2021 should curry favor with investors. That’s because the company was valued at $90bn with a previous annual production line of just 20,000 models. Its innovative battery-as-a-service (BaaS) solution is also looking to make the cost of EVs more palatable.
2. Matterport
The metaverse has been on the lips of many investors with designs on investing in high-potential tech stocks. Although major players like Meta Platforms (formerly known as Facebook), and Nvidia work hard to drive the metaverse into the mainstream, there’s plenty of room for the smaller guys too. Matterport is one such Nasdaq stock that’s ripe for fast growth. Its technology is designed to create “digital twins” of real-world assets, such as residential and commercial real estate, and much more. With 6.2 million locations already under its wings and many millions more waiting to be untapped, Matterport could be a major force in driving the immersion and authenticity of the metaverse.
3. Unity Software
Alongside Matterport and Meta Platforms, Unity Software could be another key player in the future of the metaverse. Unity Software already exists within many of the world’s most popular casual mobile games, and it is bidding to replicate a similar weighting in the metaverse. A recent buyout of Weta Digital has further served to strengthen Unity’s creative capabilities in-house, enhancing its band of programmers and art designers to deliver visually stunning games that are out of this world – quite literally!
4. Roku
Many market analysts believe 2022 could be a prime year for those with holdings in Roku. Despite losing a third of its value in 2021, there is still plenty of confidence that its value will rebound and continue to increase. The pandemic has accelerated the number of cord-cutters, who have moved towards more cost-effective on-demand platforms like Roku. Nielsen stated that ROKU was used in almost half (46%) of US homes in Q3 2021, more than tripling its active user base in five years. Furthermore, its advertising capabilities also create future revenue opportunities for America’s number-one television operating system.
5. JD.com
Our fifth and final growth stock for this year takes us to the Far East and the Chinese e-commerce giant JD.com. Investors were hesitant to commit too heavily to China’s e-commerce companies last year, as the government regulators sought to hit the likes of Alibaba hard for breaching antitrust rules. Fortunately for JD.com, its business model – akin to Amazon’s third-party marketplace – should ensure it avoids similar action. With a nation that’s experiencing a burgeoning middle class, JD.com is well-placed to capitalize on growing household demand for goods and services.
Hopefully, this clever quintet of high-potential stocks will provide you with some inspiration to make some short-term gains from burgeoning sectors like the EV and metaverse markets. Still, research is key, and you should always consider the health of the market before investing.
