Many investors want to buy shares of fast-growing companies but are understandably nervous to invest in money-losing businesses. In this Fool Live video clip, recorded on Jan. 27, Fool.com contributors Matt Frankel, Travis Hoium, Rick Munarriz, and Jose Najarro discuss some of their favorite profitable growth stocks that are worth a look now.
10 stocks we like better than Microsoft
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Microsoft wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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Travis Hoium: Top-five growth companies that are profitable. Ideas here. After the report, how can you not like Microsoft (MSFT -1.00%) right now? You don't think about Microsoft as a growth stock? But this is a growth stock.
Matt Frankel: I would say Upstart (UPST 3.39%). A lot of people don't realize that Upstart is a profitable business and has been for years. A lot of people think of them as just a growth-at-all-costs company, but that's really not the case. If you want profitability and growth, that's a good place to look to.
Jose Najarro: Travis made a great point there where many people, when we think about growth stocks, we think about these smaller-cap companies. But some of the big players, Microsoft, $2 trillion company, I think their clouding market grew over almost 30%, I believe, which is impressive. For me, heavily on semiconductor, I'm a huge Nvidia (NVDA -2.28%) fan. That's one that I believe is nice. I think it's an over half-trillion-dollar company almost. After the price reaction, I still enjoy at these prices.
Rick Munarriz: Yes, as far as profitable companies, I think there are a lot of interesting profitable companies, like Roku (ROKU -2.69%) is profitable. Netflix (NFLX -1.85%) for all that it's gone through the last week, is profitable. But I think there's also -- and again, not to say, there's four of us here, so we have different opinions -- Travis, when you mentioned Microsoft, my only concern with Microsoft, and I think Microsoft is a company that has exceeded all expectations of everyone that said, "Oh, Microsoft, yes, yawn." My concern now is because of the whole Activision Blizzard (ATVI) acquisition that they say they have until, I think June 2023. It won't happen before then.
For almost a year and a half, this is a company that's going to not be able to buy anything else because they know they can't upset antitrust regulators. And they're going to be stuck in a mode where, "What do we do now?" While everyone else is basically saying: "Hey, look at all the following. It's a sale." Microsoft is going to be stuck outside in the penalty box for a year and a half and can't go shopping at a time when a lot of these cash-rich companies, or at least stock-rich asset companies that could go in and buy stuff, will be held out. But yeah, Microsoft is an amazing company.