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3 Stocks to Buy to Escape the Dogecoin Doldrums

By Keith Speights - Updated Jun 1, 2021 at 3:26PM

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These winning stocks are just what you need to take your mind off the popular cryptocurrency's nosedive.

Cryptocurrencies have crashed in recent weeks. None of them, though, has experienced a more spectacular dive than Dogecoin (DOGE 6.75%). Elon Musk's favorite cryptocurrency is down nearly 50% below its highs set in early May.

Some investors might be waiting for a fantastic comeback. Others, however, could be looking for alternatives to park their money in the hopes of better returns. If you're in the latter group, here are three stocks to buy to escape the Dogecoin doldrums.

Shiba Inu dog with its eyes closed.

Image source: Getty Images.

Etsy

If you're afraid you'll miss the lovable Dogecoin mascot, check out Etsy (ETSY 4.56%). You'll be able to find all kinds of Shiba Inu products on the e-commerce platform, including aprons, caps, mugs, and shirts. Scooping up some Etsy shares could make you feel even better over the long term.

But isn't Etsy more than 30% off its peak this year? Yep. However, the stock still looks like an unstoppable winner despite this big sell-off.

Some investors were worried after Etsy's executives said that the growth rate for gross merchandise sales (GMS) would slow down in the second quarter. It's important to remember, though, that year-over-year comparisons against the second and third quarters of 2020, when Etsy's sales skyrocketed due to the pandemic, were destined to disappoint.

Etsy's long-term prospects remain as strong as ever. The company's platform enjoys a competitive moat that's proved unassailable so far. It continues to invest in technological innovations that boost traffic and sales, and it's expanding further into major international markets. 

Dogecoin may or may not claw its way back to previous highs. I predict that Etsy will easily do so.

Intuitive Surgical

What's more fun than a cryptocurrency that was started as a joke? Robots! I'm not talking about the kind of robots that take over the world. No, I have in mind robots that help people -- like the robotic surgical systems pioneered by Intuitive Surgical (ISRG 1.00%).

Like Dogecoin, Intuitive Surgical has been a huge winner since its creation. The healthcare stock is up close 13,750% over the last couple of decades or so. There's still plenty of room to run, though.

More than 1.2 million procedures were performed with Intuitive's robotic surgical systems last year. The company estimates that roughly 6 million procedures are done each year for the types of surgery for which its systems already have regulatory clearances. Add to that total another 14 million soft-tissue procedures that Intuitive could target with technological innovations. 

Interestingly, Intuitive Surgical's greatest strength is Dogecoin's biggest weakness. The company has an exceptionally strong moat with its huge head start in the market for robotic surgical systems. Dogecoin doesn't have much of a moat at all. Over the next decade and beyond, I think this difference will make Intuitive Surgical the bigger winner by far.

Mastercard

Fans of Dogecoin might envision a future where the cryptocurrency is used for billions of digital transactions every week. For Mastercard (MA 1.05%), that future is now. In the first quarter of 2021, the company processed 23.8 billion transactions with a gross dollar volume of more than $1.7 billion. 

Over the near term, Mastercard should benefit as economies reopen. CEO Michael Miebach noted in the company's first-quarter conference call, "We're encouraged by the return of domestic spending levels to pre-pandemic trends." International spending levels haven't fully rebounded, but there are reasons to hope that the increased availability of vaccines will make a big impact.

I like Mastercard's long-term prospects even more. The company should be a clear beneficiary as consumers continue to shift away from cash. Its contactless payment options will likely drive growth for years to come.

If you're still drawn to cryptocurrencies, though, Mastercard has something to offer on that front as well. The company plans to support select cryptocurrencies on its payment network this year. Whether or not Dogecoin is in the group remains to be seen. Even if not, investing in Mastercard should pay off nicely over the long run.

Keith Speights owns shares of Etsy, Intuitive Surgical, and Mastercard. The Motley Fool owns shares of and recommends Etsy, Intuitive Surgical, and Mastercard. The Motley Fool recommends the following options: long January 2022 $580 calls on Intuitive Surgical and short January 2022 $600 calls on Intuitive Surgical. The Motley Fool has a disclosure policy.

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Stocks Mentioned

Mastercard Incorporated Stock Quote
Mastercard Incorporated
MA
$354.27 (1.05%) $3.69
Intuitive Surgical, Inc. Stock Quote
Intuitive Surgical, Inc.
ISRG
$238.37 (1.00%) $2.35
Etsy, Inc. Stock Quote
Etsy, Inc.
ETSY
$119.91 (4.56%) $5.23
Dogecoin Stock Quote
Dogecoin
DOGE
$0.08 (6.75%) $0.00

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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