Forget Tesla (TSLA) and Dogecoin: Bet on This 10-Bagger Instead

Forget Tesla (NASDAQ:TSLA) and Dogecoin. Growth investors have plenty of better opportunities right now.

| More on:
crypto blockchain

Image source: Getty Images

Tesla (NASDAQ:TSLA) CEO Elon Musk announced that his company would accept Dogecoin as payment for some official merchandise. The meme-worthy cryptocurrency is up 20% on the news, but Tesla stock is down 2.5% along with the rest of the market. 

Here’s why I suggest you ignore them both and bet on an underrated tech opportunity instead. 

Tesla’s missed shots

Tesla has certainly established itself as the world’s most successful electric car company. Musk, meanwhile, seems to have cemented his position as the world’s richest person. 

However, that doesn’t mean that the Tesla team is infallible or successful in every industry. The company has struggled to ramp up its solar energy business ever since acquiring SolarCity in 2016. Last year they decided to accept Bitcoin payments, only to pull the plug on the idea shortly after. 

Tesla’s promises to deliver “full autonomy” have also fallen short. Remember, Elon Musk promised to have a self-driving car autonomously navigate from coast-to-coast in the US by the end of 2017. That is yet to happen. In fact, there’s a website dedicated to Musk’s failed promises called Elon Musk Today. Check it out. 

Dogecoin is a joke

There’s no polite way to say this – but Dogecoin is a joke. In fact, the creator was trying to parody the cryptocurrency community when he first launched it. Since then, he has sold his Doge holdings and distanced himself from the project. 

He isn’t a fan of the Tesla billionaire either. Musk “is and will always be a self-absorbed grifter” he said in a Tweet that was later deleted. 

Many would disagree with that label, of course. But it can’t be denied that Musk has been trying to promote Dogecoin for much of this year and even gave the token a mention on Saturday Night Live. Since his appearance, the cryptocurrency has lost 72% of its value, destroying billions in wealth for retail investors across the world. 

Bet on Bitcoin mining instead

If you’re looking for a growth opportunity or exposure to digital assets, there are better alternatives. HIVE Blockchain Technologies (TSX:HIVE)(NASDAQ:HVBT) is one such alternative. The company operates mining farms to generate Ethereum and Bitcoin. Much of this newly minted cryptocurrency is reserved on the company’s balance sheet. 

At the time of writing, HIVE stock is trading at a price-to-earnings ratio of 10. It’s also trading at a price-to-book ratio of 4.2. That’s astonishingly low for a cryptocurrency mining firm. 

Bitcoin and Ethereum have legitimate utility. They also have a longer track record and retained more value than parody tokens like Dogecoin. Meanwhile, HIVE’s undervaluation further reduces the risk in this bet. 

In fact, HIVE Blockchain has more room to grow than Tesla or Dogecoin. At its current pace of expansion and gross margins, the stock could deliver a ten-fold return within a few years. Tesla’s too big to offer a 1,000% return from current levels while DOGE would need to climb 263% just to reach its high from earlier this year. 

For most investors, it might be a good time to tune out the noise and focus on fundamentals. 

Bottom line

Forget Tesla and Dogecoin. Growth investors have plenty of better opportunities right now.

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.

Fool contributor Vishesh Raisinghani owns Bitcoin and Ethereum. The Motley Fool owns and recommends Bitcoin and Ethereum. The Motley Fool recommends Tesla.

More on Investing

Retirement plan
Dividend Stocks

Planning for Retirement? Here Are the Best Canadian Dividend Stocks to Buy

Buying two of the best Canadian dividend stocks now for the long term can help you retire without financial worries.

Read more »

investment research
Dividend Stocks

A Dividend Giant I’d Buy Over TD Bank Stock

Energy and financials are the TSX’s sector heavyweights, but I’d choose a dividend giant in the former over a big…

Read more »

edit Business accounting concept, Business man using calculator with computer laptop, budget and loan paper in office.
Dividend Stocks

2 Dividend Stocks Worth a Permanent Spot in My TFSA

Restaurant Brands International (TSX:QSR) and Berkshire Hathaway (NYSE:BRK.B) are two of my top TFSA holdings that I intend to hold…

Read more »

Bank sign on traditional europe building facade
Bank Stocks

Don’t Avoid Bank Stocks! This 1 Actually Has Massive Long-Term Potential

Some investors have said that it's a good time to avoid bank stocks. Here's one bank you shouldn't avoid. Buy…

Read more »

edit Businessman using calculator next to laptop

5 Stocks You Can Confidently Invest $500 in Right Now

Buy and hold stocks these TSX stocks to outperform the broader market averages in the long term.

Read more »

Increasing yield
Dividend Stocks

3 Canadian Dividend Stocks Offering High Yields and Reliable Income

These valuable dividend stocks offer solid deals right now, with ultra-high yields that will certainly last well beyond this downturn.

Read more »

dividends grow over time
Stocks for Beginners

Passive Income: How I Got to $2,000/Year After Just 4 Years of Saving

I got to $2,000/year in passive income partially by buying bank stocks like Toronto-Dominion Bank (TSX:TD).

Read more »

potted green plant grows up in arrow shape
Dividend Stocks

Best of Both Worlds: 3 Growth Stocks That Also Pay Dividends

Dividend stocks are great until a downturn ends. But luckily, these three dividend stocks also offer a massive amount of…

Read more »