London, UK, 4 Sep 2021, ZEXPRWIRE – Growth investing is an investment strategy that looks for companies or industries with potential to grow and expand. These investors look desperately for stocks in emerging markets because they have the biggest chance of becoming successful, even if it means taking higher risks along the way.
According to the broker from NostraCapital, while growth companies can provide high returns in the short term, based on their ability to grow earnings and revenue at a rapid pace, this tends not to be true for long-term investments. While there are exceptions of course (like Amazon), since these kinds of businesses tend go through periods where they hit plateaus.
In recent years, there have been many emerging industries that are growing in popularity and demand. The young market for these new products has untapped potential because it is still developing its consumer base. Companies with a stake in an emerging industry can see tremendous growth as the sector begins to mature over time.
The investments in these industries are some of the riskiest on the market, but they can also be incredibly rewarding.
1) 3D Printing Industry: The emerging 3D printing industry is one of the most exciting areas for growth investors today. The industry has been growing at a rapid pace and there are high expectations for future expansion. There are many new companies capitalizing on this trend, with several filing IPOs over the past year. Even established companies like General Electric have begun investing in additive manufacturing to capitalize on this emerging market.
- 3D System’s stock price has increased rapidly since its IPO last year
Investing in 3D printing technology is not without risk, however, as several companies have already started to see their stocks decline after lackluster earnings reports and short-term pessimism (Stratasys, 3D Systems). Despite this current trend in the industry, there is no doubt that 3D printing technology will continue to evolve in the years to come. Growth investors should consider investing in companies like Voxeljet, which is one of the leading providers for industrial 3D printing equipment.
2) Online Dating Industry: The online dating market has exploded over the past few decades. As more people move away from traditional forms of communication and socializing (e.g., family gatherings or church activities), new opportunities have become available for meeting potential romantic partners (online matchmaking services).
it was once taboo for individuals to seek love interests online, but since the rise of social networking sites like Facebook and Twitter, people are becoming more comfortable with sharing their personal lives on the web.
- Online dating has become a $2 billion industry in recent years
Investing in online dating is also ripe for growth. While several companies have made it big (Harmony technology), there are still hundreds of opportunities to capitalize on this rapidly expanding market (e.g., OKCupid). Investors should consider investing in Matchcorp, which owns over 45 brands under its umbrella.
3) Bitcoin Technology Bitcoin is an emerging cryptocurrency that uses peer-to-peer to operate without any central authority or banks. Just five years ago, Bitcoins were worth pennies on the dollar, but today these cryptocurrencies have become increasingly valuable. Many financial investors remain skeptical that Bitcoin will ever replace existing currencies or central banks (source), but this emerging technology has plenty of potential for growth.
- Bitcoin adoption is growing rapidly around the world
Since there are only 21 million Bitcoins that can exist in total, some investors worry that the crypto currency’s value could go up and down rapidly as it becomes more popular (which we’ve already seen). Despite these concerns, many countries like China are adopting this currency as well. There are also several exchanges opening up to support other types of cryptocurrencies like lite coin and Ripple. Even Amazon recently hinted at accepting virtual currencies, which could open a door for new opportunities for Bitcoin startups to offer future value to investors.
In 2021, there will be 20 billion Internet-connected devices
With the rise of “the internet of things,” many investors are concerned that this emerging technology could drastically change the way people interact with one another. Although there have been several security concerns raised about how these machines transmit data (example), the increased use of smart devices like Google Glass and Nest has revolutionized our modern lives.
Smart technologies like Nest can help save you money on your energy bill.
Investing in companies catering to this space is a perfect opportunity for growth and expansion. There are several companies offering software designed specifically for this industry, including Icontrol Networks Corp. and Alarm.com. As more smartphones become popular in emerging markets, we expect to see even greater demand for the Internet of Things in the years to come.
Disclaimer: Our content is intended to be used for informational purposes only. It is very important to do your own research before making any investment based on your own personal circumstances. You should take independent financial advice from a professional in connection with, or independently research and verify, any information that you find on this article and wish to rely upon, whether for the purpose of making an investment decision or otherwise.