Shiba Inu is up 63% from its 2022 low, but here are 3 stocks we still like best
VScontroversial meme token shiba inus (CRYPTO: SHIB) reached a 2022 low of $0.000019 per token in January, but has since rallied 63% to a price of $0.000031 on Friday morning. While that’s a big return in a short time, it’s nothing compared to Shiba Inu’s 43,800,000% increase in 2021. An initial investment of just $2.29 in the token on January 1 would have made of you a millionaire, if you had held out until the end. of the year.
It is basically impossible to get a return of anything approaching that magnitude again from the current Shiba Inu price, and the risks of attempting it could outweigh the potential rewards. Also consider that the meme token is still down year-to-date, and down about 65% from its October peak. That’s why three Motley Fool contributors think growth stocks C3.ai (NYSE:IA), DigitalOcean (NYSE: DOCN)and Datadog (NASDAQ:DDOG) are much better investments for your money now.
Artificial intelligence for all sectors
Anthony Di Pizio (C3.ai): This first-of-its-kind enterprise artificial intelligence (AI) company offers a suite of out-of-the-box applications that can be quickly customized to meet the needs of businesses across all industries.
Currently, for example, the oil and gas industry provides 35% of C3.ai’s revenue. Companies in this industry have found that using its technology allows them to deploy applications 18 to 100 times faster than building them from scratch, saving them the financial burden of having bloated talent teams. highly specialized internally. This is increasingly important as these companies use C3.ai applications to predict potentially catastrophic system failures and to reduce their carbon emissions, among other things.
The company also has the backing of tech behemoths like Microsoft (NASDAQ: MSFT) and Alphabet (NASDAQ:GOOG)(NASDAQ:GOOGL)who collaborate with C3.ai through their cloud services divisions to streamline the development of AI applications to better serve a wide range of different industries.
Since its 2019 fiscal year (which ended April 30, 2019), C3.ai has grown its customer base by 395%, from 21 to 104. And in the past 12 months alone, it has doubled the number of industries it serves, growing from seven to 14. The result of that growth is expected to be $249 million in revenue for fiscal 2022, according to analyst estimates.
If Shiba Inu recovers its all-time high price of $0.000089 per token from here, that would be a gain of 187%. However, one analyst thinks C3.ai stock could climb more than 300% in the next 12 months, so in my opinion, it’s a much better choice.
Riding the waves of transformation
Jamie Louko (DigitalOcean): DigitalOcean is currently benefiting from the favorable winds of two major trends: the transition to the cloud and the rise of small and medium-sized enterprises (SMEs). There are 100 million SMEs in the world today, and this figure is expected to increase by 14 million per year. Having a cloud presence is becoming not just a benefit, but a necessity for businesses of all sizes, and DigitalOcean helps SMBs easily move their digital footprint from on-premises systems to the cloud. .
DigitalOcean’s platform makes complex cloud solutions easy to understand, even for non-expert developers who might drown in the complexity of Amazonit’s (NASDAQ: AMZN) AWS Offer. The company also has a community of developers who provide tutorials on the basic skills needed to deploy cloud applications. Other cloud service providers don’t place as much emphasis on meeting the needs of non-cloud experts – most of the revenue generated by AWS and other industry giants comes from large enterprises that already have cloud experts on staff . So DigitalOcean quickly became the where SMBs go to develop and run cloud applications.
With this role, he experienced impressive adoption. The company has nearly 600,000 SMB customers and $455 million in annual recurring revenue, up 36% year-over-year. Established customers are also increasing their usage of DigialOcean’s offerings: for every $100 the average customer spent on their services in Q3 2020, they spent $116 in Q3 2021. This impressive revenue retention rate l helped move towards profitability. The company’s third-quarter net loss was just $1.8 million, or 1.6% of revenue, but its free cash flow of $29 million can easily fund it.
DigitalOcean is unrivaled in its efforts to meet the cloud needs of SMBs, and with major tailwinds propelling it forward, it looks like it could be hugely successful over the next decade. Potential competitors like AWS could try to compete in its niche, but the risk-reward ratio for Amazon would be too high. AWS often deals with multi-billion dollar customers; Developing custom, simple tools for SMBs that could outperform those of DigitalOcean would be an expensive – and potentially fruitless – effort. So, for now, DigitalOcean dominates its niche and has an unfettered path in an industry growing at 27% annually.
AI-powered performance monitoring
Trevor Jennewine (Datadog): Time is money in the business world, and when critical systems fail, it can have a big impact on an organization’s finances. Datadog helps its customers prevent these types of issues. Its observability platform integrates with over 500 different technologies, ingesting data from across the IT ecosystem and helping customers ensure their applications, networks and infrastructure are secure and are functioning correctly.
Datadog’s platform is cloud-agnostic, meaning it can be deployed in private data centers, public clouds, and hybrid cloud environments. This breadth allows it to capture more than 10 trillion data points every day and relies on artificial intelligence to surface insights, identify issues, and reduce the time it takes to fix them. Through all of this, Datadog has become a key enabler of digital business transformations that have fueled impressive financial results.
Over the past year, the company has continued to implement its growth strategy of locating and expanding. Its number of customers grew by 35% to 14,170, and at the end of 2021, 33% of those customers were using four or more of its products, up from 22% at the end of 2020. As a result, revenue soared 70% to $1.03 billion in 2021, and although the company continues to lose money on a GAAP basis, free cash flow soared 201% to $250.5 million . More importantly, Datadog has plenty of room for growth.
The company estimates its addressable market at $42 billion in 2022, but estimates that figure will rise to $53 billion by 2025 as businesses continue to invest in digital transformation. On that note, management has consistently demonstrated its ability to run and grow the business, most recently with its successful push towards cloud security. And with established customers using more products over time, their switching costs increase, making it harder for them to sever ties with Datadog. That’s why this stock looks like a smart long-term investment, especially compared to a meme token like Shiba Inu.
10 Actions We Like Better Than Shiba Inu
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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a board member of The Motley Fool. Suzanne Frey, an executive at Alphabet, is a board member of The Motley Fool. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a board member of The Motley Fool. Anthony Di Pizio has no position in the stocks mentioned. Jamie Louko owns Amazon and Datadog. Trevor Jennewine owns Amazon. The Motley Fool owns and recommends Alphabet (A shares), Amazon, C3.ai, Inc., Datadog, DigitalOcean Holdings, Inc. and Microsoft. The Motley Fool recommends Alphabet (C-shares). The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.