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The 3 Best Growth Stocks to Buy in July
Growth stocks are stocks that have the potential to grow faster than the average market, often due to their innovative products, services or business models.
Growth stocks can offer investors high returns, but also come with high risks and volatility, as they are often subject to market sentiment, competition and regulation.
In this article, we will look at three growth stocks that have strong fundamentals, competitive advantages and growth prospects, and are worth buying in July 2023.
Shopify (NYSE: SHOP): Shopify is the leading e-commerce platform that enables merchants of all sizes to create online stores, sell products and services, and manage their businesses.
Shopify has been growing rapidly, as the pandemic accelerated the shift to online shopping and digitalization. In the first quarter of 2023, Shopify reported revenue of $1.26 billion, up 110% year-over-year, and gross merchandise volume (GMV) of $37.3 billion, up 114% year-over-year.
Shopify has a large and diversified customer base, with over 1.7 million merchants in more than 175 countries. Shopify also offers a range of value-added services, such as Shopify Payments, Shopify Capital, Shopify Fulfillment Network and Shopify Plus.
Shopify has a strong competitive moat, as it provides a comprehensive and user-friendly solution for e-commerce, with low switching costs and high network effects. Shopify also invests heavily in innovation and expansion, such as launching Shop Pay Installments, acquiring augmented reality startup Primer and partnering with Google Cloud and Facebook.
Shopify is expected to continue to benefit from the growing e-commerce market, which is projected to reach $6.5 trillion by 2023. Shopify also has opportunities to expand into new markets, such as social commerce, livestreaming and international markets.
Roku (NASDAQ: ROKU): Roku is the leading streaming platform that connects users, content providers and advertisers. Roku offers devices, software and services that enable users to access streaming content from various sources, such as Netflix, Disney+, Hulu and YouTube.
Roku has been growing steadily, as the pandemic boosted the demand for streaming entertainment and cord-cutting. In the first quarter of 2023, Roku reported revenue of $574.2 million, up 79% year-over-year, and active accounts of 53.6 million, up 35% year-over-year.
Roku has a loyal and engaged user base, with over 18 billion streaming hours in the first quarter of 2023, up 49% year-over-year. Roku also generates revenue from its platform segment, which includes advertising, subscription fees and transaction fees.
Roku has a strong competitive edge, as it provides a neutral and open platform that aggregates content from various sources and offers users a personalized and seamless experience. Roku also leverages its data and insights to deliver targeted and relevant ads to advertisers and content partners.
Roku is expected to continue to benefit from the growing streaming market, which is estimated to reach $184.3 billion by 2027. Roku also has opportunities to grow its international presence, its original content and its smart TV integration.
Square (NYSE: SQ): Square is a leading fintech company that provides payment solutions and business tools for individuals and businesses. Square offers products such as Cash App, Square Point of Sale, Square Online Store and Square Capital.
Square has been growing rapidly, as the pandemic increased the adoption of digital payments and financial inclusion. In the first quarter of 2023, Square reported revenue of $5.06 billion, up 266% year-over-year, and gross profit of $964 million, up 79% year-over-year.
Square has a large and diverse customer base,
with over 36 million monthly active Cash App users and over 2 million sellers using Square’s ecosystem. Square also offers a range of complementary services, such as Bitcoin trading, peer-to-peer transfers, stock investing and business loans.
Square has a strong competitive advantage,
as it provides a simple and integrated solution for payment processing and financial services,
with low barriers to entry and high customer retention.
Square also invests heavily in innovation
and expansion,
such as launching Square Card,
acquiring music streaming service Tidal
and partnering with Afterpay.
Square is expected to continue to benefit from the growing fintech market,
which is forecasted to reach $305.7 billion by 2025.
Square also has opportunities to expand into new segments,
such as banking,
e-commerce
and international markets.
