Growth potential: 3 stocks recommended by Google's most advanced AI
Google's new "Gemini Pro" artificial intelligence model is an interesting development in the field of investing. What stocks does this latest technology recommend and how might it affect your portfolios? We take a look at what 3 stocks with the potential to gain up to 1000% have been picked by AI.
Google recently announced a new AI model called "Gemini" that promises to revolutionize investing. This innovative tool is becoming a key factor in stock picking decisions.
ThredUp is an online marketplace specializing in the sale of used clothing and accessories. The platform allows users to order bags filled with items they want to sell or donate and then ship them back. In this day and age, where more and more people are turning to thrifting and reusing, ThredUp provides users with the opportunity to shop for quality clothing at affordable prices, a contributing factor to the positive 21% year-on-year sales growth in the last quarter.
The company has also seen an improvement in margins, an important factor in the path to achieving profitability by 2027 to 2028. ThredUp is estimated to achieve total revenues of $380 million in 2021, representing a year-over-year growth of 21%. The company's operating loss decreased 25% to $17.3 million. Despite the current profit loss, the company has great potential, especially given the growing popularity of of sustainable fashion and consumer interest in second chances for clothing and accessories.
While it is ThredUp is considered a speculative investment with a low market capitalization and high risk, its dynamic business model and potential within the sustainable fashion market presents an interesting investment opportunity. According to Google's AI estimates , ThredUp has the potential to achieve growth of up to 300% in the coming years.
Fastly is a company offering a cutting-edge cloud platformthat enables developers to quickly create secure digital applications and websites. Its services include content delivery, image, video and streaming optimization and security applications. Although the company's stock has experienced a significant decline, Fastly is expected to approach profitability in the near future, which could be momentum for its stock value.
Fastly could approach profitability this year, which could lead to strong earnings growth. Analysts peg Fastly 's forward price-to-earnings ratio at less than 10 times five years, suggesting the stock still has upside potential despite the recent decline in value.
The company is currently trading at approximately $20 per sharewhich is significantly less than its peak of $126 per share, reached in 2020. The P/E ratio is approximately 5, which is much lower than other comparable companies, suggesting the potential for share price growth. However, in order to reach 1 000% growth as estimated by artificial intelligence, the company would need to see significant earnings growth in the coming years.
Bill Holdings $BILL-0.7%
Bill Holdings Provides cloud-based financial operations software for small and medium-sized businesses. Its offerings include accounts payable and accounts receivable automation, supplier and customer connectivity, and security services for the e-commerce and fintech sectors. In the last quarter, the company reported 32% year-on-year revenue growth and is expected to achieve double-digit growth annually through 2028.
Unlike other companies in the industry, Bill Holdings is now a profitable business and is expected to achieve further earnings growth in line with its historical pace. With a solid financial position that includes substantial cash reserves of $2.65 billion versus debt of $1.91 billion, the company is well positioned.
Bill Holdings' valuation is not overstated, according to analysts, even though the stock trades at a P/E ratio of 11. Analysts don't see the likelihood of earnings multiples increasing, which would be necessary to achieve a 1,000% increase in share value. Even though this is an attractive trade with a number of positive factors, the likelihood of achieving exponential gains from today's valuation is limited.
Disclaimer: There is a lot of inspiration to be found on Bulios, but stock selection and portfolio construction is entirely up to you, so always conduct a thorough analysis of your own.