Is this stock like Amazon in 1997?

Is this stock like Amazon in 1997?
22 April 2020

The technology sector offers some of the best opportunities for catching one of the elusive "100-baggers". If a company manages to grow by 25% p.a. for 15 years, it will have multiplied by a factor of 28 by the end of that period. Throw in some economies of scale, and you may get that 100-bagger that everyone is hoping to find for their portfolio.

I believe I've found a strong candidate for achieving such growth throughout the 2020s. If my instinct is right, this is a ground floor opportunity similar to investing in Amazon 20 years ago.

The company in question has just been disclosed in my latest research report for Undervalued-Shares.com Members.

It's an online company that is already world-leading in its market. You could even say that it has created its own market by approaching a problem in a different way than everyone else. It could be a category-defining company.

Its target market generates USD 5tr per year, but only a tiny fraction of that has already shifted online.

A future Internet household name?

The company featured in today's report:

  • Has tripled its annual revenue since 2017 (to triple-digit millions).
  • Has already facilitated over 50m individual transactions.
  • Is used by paying customers in 160 countries.
  • Has a high rate of repeat customers (57%).
  • Has more than doubled its annual revenue per customer over the past five years.
  • Is 22% owned by its management team.
  • Has the backing of a Silicon Valley venture capital firm, which previously backed successful start-ups such as LinkedIn and Instagram.

Its market cap is slightly above USD 1bn. It's not a tiny small-cap company anymore, but it's far from ranking among global Internet giants.

That could change, though. The company is in the pole position to capture a market that is almost too large an opportunity to be true.

The company does not make money yet, and its further growth might require injecting more capital. The company is not without risks, and the valuation of its share divides investors (short-sellers also love the company!).

However, stocks that can multiply in value simply come with a higher risk. The stock trades on one of the world's largest stock exchanges, anyone can access it.

It's a very exciting opportunity for the very reason that it is slightly different from what I usually feature in the reports that I send to Members of Undervalued-Shares.com. It also ties in with a lot of the technology trends that are likely going to be accelerated by the coronavirus crisis.

To keep this investment idea exclusive to my Members, I am not revealing any more details.

If you want to download the right report away, simply become a Member. Membership is just USD 49 per annum, which gets you at least ten such in-depth reports with my best investment ideas every year (and access to all previous reports and updates).

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