"Find out where the world is going and get there as soon as possible." -- David Gardner, Co-Founder, The Motley Fool
The best investors can spot transformative technologies before most others. It's a lucrative skill that could help you build vast wealth in the stock market.
If you would like to get in early on powerful trends and position yourself to profit from exciting technological advances, such as artificial intelligence (AI) and electric aircraft, read on. The two companies that follow are set to disrupt massive markets while potentially delivering handsome returns to their shareholders along the way.
Symbotic
AI is coming to a warehouse near you. Symbotic (SYM 1.62%) is using cutting-edge AI and robotics technology to help companies slash their logistics costs by automating their supply chains.
Symbotic's system can lessen its customers' warehouse-space needs by up to 60%. Rather than hours, trailers can be loaded in minutes. Orders can be fulfilled with 99.99% accuracy and fewer inventory requirements. The company estimates that a $50 million purchase of one of its modules can reduce operating expenses by $10 million annually for up to 25 years.
These benefits aren't escaping the attention of major retailers. Grocery giant Albertsons and Target have deployed Symbotic's systems in their warehouses. Walmart, meanwhile, is integrating Symbotic's technology across all 42 of its regional distribution centers to bolster its inventory management and fulfillment operations.
Predictably, given the speed and efficiency gains that its tech can provide, Symbotic's sales are soaring. Its revenue leaped 98% to $1.2 billion in its fiscal year ended Sept. 30. Better still, Symbotic's profit margins are improving as it grows its revenue base.
The company has not yet achieved profitability based on generally accepted accounting principles (GAAP). It did, however, generate positive adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) for the first time in its fiscal fourth quarter. It expects this positive trend to continue in 2024. The company projects that it will produce as much as $14 million in adjusted EBITDA in the first quarter.
Looking further ahead, Symbotic's profits could grow exponentially in the coming years. The robotics leader estimates its long-term market opportunity at a stunning $350 billion.
Archer Aviation
Your next ride to the airport could take up much less of your time. Archer Aviation (ACHR 1.00%) is working to make flying taxis a reality, and it's made more progress than you might expect. Archer is developing all-electric vertical take-off and landing (eVTOL) vehicles. Its Midnight aircraft is designed to usher in a new wave of high-speed urban travel.
Capable of flying at speeds of up to 150 miles per hour, Archer's EVs can avoid congested roadways and replace tiresome 60-minute commutes by car with safer 10-minute air taxi flights. And the Midnight's all-electric design creates zero operating emissions, making it a more environmentally friendly option.
Unsurprisingly, given these advantages, transportation industry titans are lining up to partner with Archer. Boeing, United Airlines, and Stellantis have all acquired equity stakes in the EV upstart. Archer has received over $1.1 billion in funding from these and other high-profile backers.
Better still, Stellantis is helping Archer scale up its manufacturing operations at its plant in Covington, Georgia. Initial production of Midnight aircraft is slated to begin by mid-2024.
Archer Aviation's Midnight EV. Image source: Archer Aviation.
United Airlines, meanwhile, has agreed to purchase up to $1.5 billion worth of Archer's aircraft. The airline is also collaborating with Archer to establish the first commercial electric air-taxi routes in the U.S.
These transportation leaders are rightfully intrigued by Archer's growth potential. The urban air-mobility industry is forecast to soar to $1 trillion by 2040 and as much as $9 trillion by 2050, according to Morgan Stanley.
Archer is on track to commence commercial operations by 2025. Its sales should grow quickly shortly thereafter. Today, you have the opportunity to buy shares in this innovative upstart that's set to spearhead a potentially multitrillion-dollar industry while its total market value is still less than $2 billion.
