We’re in an age where innovation can be found in every corner of the stock market. Younger investors, millennials and Gen Z investors, for example, are lucky because they still have long investment horizons ahead. This means that they can get into some of the more exciting, albeit riskier, companies and give them the time needed to see their growth stories play out. In this article, I discuss two stocks that millennials should buy today. These two companies have the potential to generate excellent returns.
It’s not too late to buy this stock
The first stock that millennials should consider buying is Shopify (TSX:SHOP)(NYSE:SHOP). Although this isn’t the most exciting pick, I believe it makes a lot of sense. Shopify’s business should resonate with a lot of younger investors, the main reason being the younger demographic is very used to the idea of shopping online. In addition, many first-time entrepreneurs in their 20s and 30s have turned to Shopify over the past few years in hopes of kickstarting their businesses.
From an investment point of view, Shopify’s best days of growth could still be ahead. The company has been an excellent growth machine, in terms of its stock and revenue, ever since its initial public offering. However, it seems as though Shopify’s business is finally starting to reach a point of no return. In Q2 2021, Shopify stores surpassed Amazon in quarterly customer traffic for the first time. This is very promising as it suggests that consumers and businesses alike are continuing to find value in Shopify’s platform.
There’s no denying that Shopify has already grown a lot over the past six years. However, if I had to choose one TSX stock to invest in, it would be Shopify. I believe it could be the first Canadian company to reach a $1 trillion market cap.
Companies that process online transactions are a gold mine
When you think about the things that the younger demographic likes to do, I’m sure that many of the things you’d list have an online component to them. Whether it’s shopping, gaming, or entertainment, a lot of what the younger generation likes to do takes place online. Therefore, companies that process online transactions should continue to see massive growth in revenue for the foreseeable future. As a result, Nuvei (TSX:NVEI)(NASDAQ:NVEI) is a stock that deserves consideration for your portfolio.
Currently, Nuvei is valued at just over $19 billion. Its closest competitors are valued much higher. For example, PayPal currently has a US$240 billion valuation and Adyen carries a market cap of €77 billion. Although it can be argued that Nuvei’s business is much smaller than its competitors, the fact that other payment processors have found success bodes well for Nuvei’s future.
Currently, Nuvei is present in 204 global markets, accepts 480 payment methods, 150 currencies, and 40 cryptocurrencies. The company continues to grow its revenue at rapid rates and is aggressively moving into new markets. Although Nuvei stock has already gained about 200% since its IPO, we’re still very much at the start of its growth story.