Even if you don't have a lot of money to invest in the stock market right now, staying consistent and gradually adding to your portfolio amid the market's ups and downs can help you build a powerhouse portfolio that sets you up for a stronger financial future.
An investment amount like $1,000 put toward strong companies can form a great foundation that you can add to again and again over the years. If you have this amount to put into stocks right now, here are two supercharged stocks to consider adding to your portfolio ASAP.
1. Fiverr
Fiverr (FVRR -1.44%) remains one of the world's leading platforms to connect businesses of all sizes with freelance talent in just about every industry imaginable. The world of work was already changing before the pandemic, but the pandemic era accelerated the adoption of digital technologies and distributed teams at a previously unseen pace in the labor market.
Even now as many companies have called employees back to the office for at least a few days a week, the broad adoption of remote, flex, and hybrid work remains.
At the same time, this changing world of work has led an increasing number of individuals to seek opportunities in the lucrative and fast-growing gig economy. This creates a series of prolonged tailwinds for growth that Fiverr can continue to capitalize on in the years ahead.
According to estimates by Statista, there are roughly 57 million freelancers in the U.S. alone. Meanwhile, the gig economy is on track to generate gross volume of $455 billion in 2023. And, according to estimates by The World Bank, 46% of the global workforce are already freelancing or self-employed.
In short, demand for quality freelance services isn't waning, but growing. And the onset of a potential recession may only increase demand for freelance talent, rather than scale it back. The reason for this is that companies might be far more likely to hire freelancers for specific projects or even on a long-term contract basis, rather than full-fledged employees, when trying to scale back costs in a high-inflation, economically challenging environment.
Meanwhile, Fiverr's active buyers and spend per buyer increased by 3% and 12% year over year in the most recent quarter, with revenue jumping 11% to about $83 million. It also reached adjusted EBITDA profitability of $6.6 million. Over the past three years, Fiverr saw its revenue and cash position grow by respective amounts of 180% and 200%.
As Fiverr continues to invest aggressively in building its business, and to attract more buyers and sellers of freelance services to its platform, it remains well-positioned to maintain its key player status in a booming industry and inch toward profitability. Investors who buy and hold onto this stock in the years ahead can also benefit from this growth story. A $1,000 investment in Fiverr would add approximately 34 shares to your portfolio.
2. Airbnb
Airbnb's (ABNB 1.09%) growth story over the last few years is quite different from what many investors expected. With the travel industry coming nearly to a screeching halt and the subsequent recovery still remaining below pre-pandemic levels, witnessing Airbnb's rebound to record revenue growth, not to mention continued profitability, hasn't been evident in its still-depressed share price.
Considering the stock is trading down by nearly 50% over the trailing 12 months, the current market could present a particularly compelling opportunity to buy into a relatively early-stage growth story, and at a discount.
A potential slowdown in travel demand in the event of a recession could affect Airbnb. However, given the diversity of Airbnb's model and the fact that it caters to both individuals looking for a place to live for a longer period and those searching for short-term accommodation, it is less vulnerable to these types of headwinds than other travel stocks.
As CEO and co-founder Brian Chesky noted in the most recent earnings call:
So one of the things that we've seen is despite a lot of consumers pulling back on spending, the one area that I haven't seen them pull back on as much is travel. And in particular, like travel, where you can go and see your friends, see your family, more inspirational type of travel. In other words, meaningful travel, not just mass travel. And I think the reason why is just because many people are now working from home, the mall is now Amazon; the movie theater is now Netflix, people still want to get out of the house. They still want to have memories. They still want to have meaningful experiences.
Another reason behind the growth stock's continued success amid a mixed travel recovery is the fact that it provides tremendous value to both sets of users on its platform -- the hosts who list their homes to rent out, and the travelers who book the listings. For hosts, Airbnb presents an opportunity to supplement or replace a full-time income, while travelers searching for anything from an exotic stay in a different country to an apartment they can live in and work out of for months at a time can locate the stay of their choice on the platform.
This two-sided aspect to Airbnb's platform and the way in which it's fueling continued growth bears out in the company's financial reports. The most recent quarter saw revenue jump 30% year over year to $3 billion. The three-month period was the most profitable in the company's history, and net income totaled $1.2 billion, up nearly 50% year over year. A $1,000 investment in Airbnb right now would add approximately 12 shares to your portfolio.
