The pandemic has thrown a lot of sectors out of gear, and businesses have had to figure out new ways to adapt to the changing world. A lot of analysts have predicted the speed of change that the world economy has witnessed this year could be irreversible. Two companies that have been in the news recently for getting on top of the change are AI-powered learning platform Docebo (TSX:DCBO) and green ride-sharing app Facedrive (TSXV:FD).
Docebo is a high-growth tech stock
Docebo is a small-cap tech player that provides cloud-based online training software. It is fast building a reputation as a master in the AI (artificial intelligence) space. The company claims its user interface is intuitive and easy to use. It comes with a good number of widgets that you can drag and drop on your courses and also supports multiple integrations. Docebo understands that learning through staring at a screen is boring, so it gives you the option of gamifying content as well.
In September, the company landed Amazon as a client. Maureen Lonergan, director, Training and Certification, Amazon Web Services, said, “Customers worldwide will be able to access AWS Training and Certification products, including digital training, classroom training, and AWS Certifications, leveraging Docebo technology.” How’s that for punching above its weight!
The stock is currently trading at $47.87 and has already run up 332% from its March lows of $11.06. If you are looking at the stock from a short-term point of view, I think you can give it some time to cool down. However, if you are looking at Docebo for the long haul, you should start accumulating the stock on dips every month. It will pay off handsomely.
Uber clone with a dash of green
I am not a big fan of Facedrive, even though the company has delivered over 500% returns in the last one year. I find the company’s model to be very similar to Uber with the only addition that Facedrive is environment focused. The business model for both companies is the same, and Uber has been struggling since its 2019 IPO.
The company has a cash balance of less than $5 million right and will likely take its investors on a roller-coaster ride before it turns profitable. There will be multiple capital-raising rounds in the near future. I think Facedrive is a great stock to make some quick money if you follow the movement of the markets obsessively and are able to predict which way the sentiment will flow for Facedrive. There is also the possibility of getting caught when the tide goes out.
Facedrive is trading at sky-high valuations, but it is also expected to grow sales at a breathtaking pace in the upcoming quarters. Its focus on international expansion and diversification into other business segments will drive top-line growth in the upcoming decade.
The Foolish takeaway
Growth stocks have a high beta, which means they underperform the broader markets in a sell-off and crush market returns in a bull run. While it is impossible to time the market, you can look to buy these stocks at major dips and average out your losses.
This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. David Gardner owns shares of Amazon. The Motley Fool owns shares of and recommends Amazon. The Motley Fool recommends Uber Technologies and recommends the following options: short January 2022 $1940 calls on Amazon and long January 2022 $1920 calls on Amazon. Fool contributor Aditya Raghunath has no position in any of the stocks mentioned.