5 Stocks I'm Watching Right Now!

In this video, I discuss 5 stocks that are on my radar right now that I think have good potential for growth, and maybe they’re ones that you may want to take a closer look at as well.

I usually look to pick up shares when a stock has sold off from all-time highs and has found lower support levels. A lot of times, after earnings can be a good time to go shopping, as long as you are still bullish on the company with their guidance for future growth.

API (Agora)

LMND (Lemonade)

SQ (Square)

RBLX (Roblox)

SCR (theScore)

One of the most common questions I get asked is how I find stocks and how you can research them for yourself. If there is a company you want to dig into the fundamentals with, just search their name and “investor relations.” I think just about every publicly traded company here in the US has a page like this on their website. You can find their earnings reports, conference calls, financials, etc.

If you just want to find out about financial news, you can check out Barchart, FinancialJuice, Benzinga, and Investopedia.

And of course, nothing in this video is financial advice. I am not a financial professional. I don’t currently have any positions in the following companies and you should do your own research before investing your own money.

Let’s get into it.

AGORA

I’m guessing you may have been hearing a lot about a new social media platform lately called Clubhouse. It’s like a zoom call, but audio only. Or maybe it’s actually an exciting platform to hear established people in your industry casually chat.

Personally, I’m not sure where I stand on it because I don’t really enjoy talking on the phone or just listening to stream of conscious conversations, but it does seem interesting. I’ve been on there a few times and it was fine, but that was it.

In more exciting news, you had Elon Musk hop on Clubhouse for a chat with Robinhood’s CEO which had over 5,000 people in the room listening in. It doesn’t really matter what my personal take on Clubhouse is – what matters is what the rest of the world thinks and if it ends up catching on. Right now it’s still invite-only and not monetized, but I believe their plan is to have hosts be able to sell tickets to their chats and do some sort of revenue split with Clubhouse.

All of that to say, if you want a piece of the Clubhouse action from a stock market perspective, your only real avenue to do so at this time is through a small Chinese company called Agora, with the ticker API. Agora provides audio and video tech for virtual service platforms and it’s the technology Clubhouse is currently running on.

In 2020, Agora had revenues of 133.6 million which was a 107.3% increase from 2019. Still in their growth stage, they had a net loss of 3.1 million, compared to $6.2 million in 2019.

For 2021, Agora has preliminary revenue estimates between 178 and 182 million dollars.

You also have Cathie Wood’s ARKW ETF that bought a nice stake in API as well.

Agora charges their customers by minutes and per participant, and while Clubhouse seems to be one of their biggest customers, their audio price per minute is much less significant than their video price per minute, so they said Clubhouse as a single case would likely not provide a significant revenue boost. So it’s possible buyers of the stock are over-estimating the Clubhouse effect. Still, this seems like an interesting play.

On the chart, we are well off of its previous all-time high of $114.97, from the Elon Musk effect.

It still remains to be seen if Clubhouse will be here to stay and what kind of impact it will actually have on Agora’s bottom line.

LEMONADE

If you aren’t familiar with Lemonade as a stock, you’ve probably seen their ads over Instagram or elsewhere. Lemonade is an insurance company offering renters, homeowners, pet, and life insurance. What makes Lemonade different from others and a disrupter in the space is its implementation of artificial intelligence technology.

The AI not only helps them process applications and claims quickly, but it also helps them detect fraud quickly as well. So what this means is not only is the customer experience better because you’re able to sign up quickly and get paid out quickly, but the company also saves money with its efficiency.

As a Millennial, I tend to learn towards companies that streamline the process and limit human interaction, since I hate having to talk on the phone with people to get things done. It also ends up being cheaper than some of their other competitors for both renters and homeowners insurance.

In their 2020 Q3 letter to the shareholders, they increased their gross profit by 83% and increased their customers by 67% to 941,313.

Since they do seem to be targeting my generation, they are finding us when we are renting and getting us in as a customer with renters insurance, and as more and more millennials become homeowners, they are seeing that customer “graduate” to homeowners insurance.

On average, the premium per customer for “graduates” grew to $900… so basically, they first paid to acquire a customer who pays $150 a year in renters insurance, and now that same customer is paying $900 per year – showing that not only are current customers happy with the service, but their lifetime value is now so much greater because of it.

They also launched pet insurance in Q3 which brings in additional revenue without additional spent. The premiums spent by customers who added a pet policy almost quadrupled, which again improves the Liftetime Value and Customer Acquisition Cost.

On the chart, we are well off from it’s all-time highs, but it seems like a good long-term play to me.

Lemonade announced their Q4 earnings today. They beat analysts’ expectations, but they are still losing about 60 cents per share. The good news is they are becoming more profitable as a company. Shares sold off quite a bit today trading in the $112 range. So this is a stock that I’m going to keep my eye on and look for it to stop leveling off, find support and then maybe catch it on its next wave back up.

SQUARE

I’m sure you know the next stock, Square. They’ve got a strong hold on payment processing in a lot of brick and mortar businesses and online. We used to use Square for our wedding photography business. They also own the Cash App for peer-to-peer transactions.

In Q4 of 2020, they had a gross profit of 804 million, up 52% year over year. Their Cash App had more than 36 million monthly transacting customers, also up 50% year over year.

So not only are they crushing in the payment processing space, they’ve also made bitcoin more accessible through the CashApp, allowing people to buy and sell bitcoin easily. You can already buy stocks with the CashApp, but adding Bitcoin helps increase their engagement and monetization.

Their total net revenue was 3.16 billion in Q4, and they’ve got 4.4 billion in cash.

Ark’s Fintech ETF also has Square as their largest holding right now, which can provide some additional confidence if you’re a fan of Cathie Wood and her management of Ark funds.

Their profits are increasing, their growth – especially with Cash App is increasing.

In general, this is a very solid company that’s only getting bigger and better. On the chart, they are off of their highs earlier in February of $283, finding support at $220 and now moving back up, so I’ll be looking at picking up some shares or long-dated call contracts.

ROBLOX

Next up is a company that hasn’t been available to invest in publicly before – Roblox, the online game platform. It’s been around since 2004 and at its last funding round was valued at 29.5 billion dollars.

In 2020, Roblox had 924 million in revenue, which is a year-over-year growth of 82%. Last year, they had an average of 32.6 million daily active users, so it’s still pretty freaking popular.

Roblox is planning to go public on March 10th through a direct listing under the symbol RBLX.

This differs from an IPO – or initial public offering. With an IPO, companies pay a fee to an expert to help support the pricing of its shares so that they get bought up at a desired price, allowing the company to raise the capital it wants. But we have seen with the recent IPOs of DoorDash and Airbnb that the stocks popped off once they hit the market indicating the companies may have left some money on the table with their offering.

The direct listing allows Roblox to save a decent chunk of money that would normally get paid out to investment banks with a traditional IPO. The downside is Roblox doesn’t raise money with this process.

At this time, Roblox isn’t profitable and in their SEC filing, they posted a net loss of $253.3 million, up from 71 million the previous year, but they have 411.2 million in free cash flow

I’ll be keeping my eye on this when it hits the market in March and see if it’s worth a trade or even a long-term hold.

THESCORE

Let’s talk about another new listing to the US markets, with Score Media and Gaming, known as theScore. They are a Canadian sports betting company expanding into the US, currently live in Colorado, Indiana, Iowa, and New Jersey.

The Canadian Parliament is discussing ending a federal band of single game betting, which would make theScore well-positioned to be a market leader there. Right now, a sports bet in Canada must include at least two events in one wager, known as a parlay.

We’ve seen sports betting start to become more commonplace here in the US as well. Penn National actually bought an equity stake in theScore, which gives theScore access to sports betting markets in 11 US States where Penn National operates casinos and racetracks.

Due to the COVID disruption of regular sports schedules, theScore did have a 33% year-on-year revenue drop for their sportsbook business. Their Q4 revenue also fell by 61% down to 2.5 million Canadian.

For me, I do see sports betting eventually becoming legalized in more and more states, and when sports return to normal, we will see revenues of these companies increase as well.

On its chart on the Toronto Stock Exchange, theScore had a nice peak of $56 a week when Canada first passed single-game sports betting in the House of Commons. It’s now trading in the mid 30s.

It just closed its IPO here in the US, raising $186.3 million dollars at a price of $27 per share. The price is now hovering around $29 on the Nasdaq.

Overall, this seems like it could be a good play, once Canada officially legalizes single game betting and as the US starts to adopt it in more and more states, so I’ll be keeping my eye on it.

Final Thoughts

Well, those are 5 stocks that have my attention. Let me know what stocks are on your radar in the comment section below the video, just please don’t pump crappy penny stocks.

Also, there are lots of spammers in the comments impersonating me. Just so you know, I will never offer to help you trade in the comments or ask you to message anyone on what’s app. My name will always be highlighted in the comment section of my own videos.

Do me a favor and hit the thumbs up button on this video, consider subscribing if you haven’t already, and I will see you in the next one.