Two things about Shiba Inu (SHIB 2.20%) are abundantly clear. First, the cryptocurrency has generated a staggering gain over the past 15 months. Second, there's no way this momentum can continue much longer.
Maybe, just maybe, Shiba Inu will keep growing but at a slower pace. However, even that is questionable. The digital currency faces multiple challenges that should seriously worry anyone pouring a lot of money into it.
My view is that it's much more likely that the cryptocurrency loses steam. If you're looking for a less risky way to make money, there are much better alternatives. Here are three growth stocks that are likely to trounce Shiba Inu over the next five years.
Image source: Getty Images.
1. Matterport
Matterport (MTTR 0.86%) should be a growth machine over the next several years. The company is the leader in the spatial-data market. Its technology platform enables the creation of 3D digital twins of any physical space.
If you've looked for a home to buy or a vacation rental recently, there's a pretty good chance you've taken a virtual tour using Matterport's technology. The company's spatial-data platform is also used in facilities management, insurance-claims processing, construction, building design, and in many other ways.
While Shiba Inu competes with thousands of other cryptocurrencies, Matterport absolutely dominates its market. The company has 100 times more spaces under management than all other competitors combined.
Matterport's total addressable market is around $240 billion. The company only has to capture a low-single-digit percentage of that market to be a big winner for investors.
2. Sea Limited
Three of the hottest areas to invest in right now are digital entertainment, e-commerce, and fintech. Sea Limited (SE -0.69%) is a growing leader in all three markets.
The company's Free Fire ranks as the highest-grossing mobile game in India, Latin America, and Southeast Asia. It's had over 1 billion downloads on Google Play and holds the No. 3 spot globally in average monthly active users on the platform.
Sea Limited's Shopee reigns as the leading e-commerce app in Southeast Asia. It has also gained significant momentum in Brazil since being launched in the country in late 2019. Shopee's success has also boosted the adoption of the company's SeaMoney mobile wallet.
Analysts project that Sea Limited's sales could skyrocket to $23.2 billion in 2024 from nearly $4.4 billion last year. That's more than five times growth in only four years. Unlike Shiba Inu, Sea Limited should be able to keep up its high-flying ways.
3. Teladoc Health
Teladoc Health (TDOC -2.91%) has lost more than half of its market cap since February. However, I think that this healthcare stock is poised for a huge rebound.
I'm not alone in that view, by the way. Teladoc remains one of ARK Invest founder Cathie Wood's favorite stocks. Wall Street also likes Teladoc, with the consensus 12-month price target for the stock reflecting an upside potential of more than 35%.
Teladoc's long-term growth prospects remain exceptionally strong. The adoption of telehealth is still only in its early stages. The same is true for digital chronic-disease management.
Sure, competition is heating up in the virtual-care market. However, Teladoc is the clear leader. Its customer base includes more than 40% of the Fortune 500 plus thousands of smaller clients. Teladoc also offers a wider range of products and services than its rivals do.
The company isn't resting on its laurels, though. Teladoc recently launched integrated mental-health service myStrength Complete. It also expanded access to its Primary360 virtual primary-care service to commercial health plans and employers across the U.S.
Shiba Inu has little real-world utility. Meanwhile, Teladoc is changing how healthcare is provided. I think the choice about which one will be the bigger winner over the next five years is easy.
