One of the keys to succeeding in the stock market is consistency. Regularly buying new stocks or adding to existing positions -- even with a relatively small sum, such as $100 -- can make a huge difference over the years. And there are quality stocks that can be had for that much or even less per share.
Let's look at two examples: Fiverr International (FVRR -2.00%) and Shopify (SHOP -2.37%). These tech leaders are trading for well under $100, and both are worth holding on to for a while.
1. Fiverr
With $100, investors can afford two shares of Fiverr at the current price of $34.62, with some change to spare (if fractional shares aren't available). What makes it a smart buy is the company's role in the expanding gig economy.
The platform helps match freelancers with anyone looking to buy their services. It's an ideal place for people looking to jump-start their side hustles or start a new career in freelancing.
All told, there are 600 categories of services on the website, providing plenty of options to choose from for businesses. Convenience is always a great selling point, and that's what Fiverr offers to sellers and buyers on its platform.
The business has performed reasonably well over the last few years, although it slowed once pandemic-related tailwinds subsided after initially catapulting its operations to new heights.
Last year, revenue was $337.4 million, an increase of 13.3% year over year. Active buyers as of the end of the year totaled 4.3 million, slightly higher than the 4.2 million it had at the end of 2021. Spending per buyer increased by about 8% year over year to $262. Fiverr's take rate (the fee it charges as a percentage of payment on a transaction) came in at 30.2%, up from 29.2%.
Fiverr isn't profitable and reported a net loss per share of $1.94, worse than the $1.81 loss in 2021. However, the company is cutting costs to increase efficiency and eventually reach profitability. Shifting away from growth at all costs is a good sign, especially in today's economy.
The company should continue increasing its revenue with more and more businesses turning to its services, a trend that doesn't look to stop anytime soon with the gig economy still booming. That's why it's worth adding the company's shares while they remain down by 45% over the trailing-12-month period.
2. Shopify
Shopify's stock was getting quite expensive, even exceeding $1,000. So it resorted to a 10-for-1 stock split last year, making its share price look more affordable to the average investor in the process. Right now, shares trade for $41.46, so $100 is good for at least two of them. And initiating a position would let you benefit from the e-commerce industry, which still has lots of growth left.
Before looking at the e-commerce potential, let's consider Shopify's place in it. Its website helps merchants build online storefronts, essential for most any business nowadays. It also offers complementary tools, like inventory management, online marketing on some of the largest social media platforms, payment services, and the ability to integrate brick-and-mortar operations.
The platform gives merchants just about everything they need, making its services hard to switch from with ease. In 2022, Shopify increased its revenue by 21% year over year to $5.6 billion. The company's gross merchandise volume (GMV), the total value of transactions conducted on its platform, was $197.2 billion, 12% higher than the year-ago period. Yet, it accounted for only 14.7% of total e-commerce sales in the U.S. in the fourth quarter of 2022.
Shopify's formula of providing new services to attract customers has proven its value, and it should deliver a higher GMV along with solid top-line growth, especially with its recent price hikes. It is well-positioned for market-beating returns over the long run.
