3 Stocks I’m Buying Now! October 2020

by birtanpublished on October 2, 2020

Well hello there guys and welcome into today's video i hope you have a great day out there as always today we get to do my favorite video i'm doing this series each and every month called three stocks i'm buying now this is the october 2020 edition we are doing here today this is my favorite series i do on the channel each and every month if you don't know i just posted last night my three dividend stocks that i'm planning on buying in october 2020 i posted that on financial education too late last night so if you haven't

Gotten a chance to check out that video if you're into dividend stocks you might want to check out that later on okay but today we're talking about three high growth stocks okay this is my favorite series because i love high growth companies okay dividends are like it's okay okay but the high growth stocks that's what i'm talking about and all three of these stocks are in very different sectors and all three of these companies i'm sharing with you here today

Are very different okay make sure you do your own research out there don't just buy a stock because i'm buying stock remember this video is called three stocks um buying okay not three stocks you should buy these are three stocks i'm buying and i'm going to give you my full bullish thesis on these stocks which i think is the most important part of these videos not just the name give me the bullish thesis okay let me know in the comment section what three stocks or if any stocks you are

Planning on buying in the month of october i would love to see kind of what stocks you guys are buying and and what stocks you guys believe in the most over the long term so i'll definitely be reading through the comments of this video if you don't mind smash the thumbs up that helps youtube channel out in a massive way it is free to do also if you like stock market related content videos where i talk about stocks and things like that maybe consider subscribing also we have resources

Linked in the description down there several really good ones so if you want to check out the description area definitely do so definitely some good resources linked for you down there let's get into this guys the first stock up here number one of three is a company name stitch stitchfix ticker symbol sfix on this one okay this is the first stock of these three that i'm planning on buying in the month of october 2020. okay market cap on this one under three billion dollars it is a major growth

Company even now but i think in future years it will definitely be stitch fix is a website slash app where essentially you can get clothes sent to you that are styled specifically for you so you go ahead and put in a bunch of your data on what type of clothes you like what size you are all those sorts of things and then essentially stitch fix has a stylus which will go ahead and pick out those clothes those clothes will be sent to you and

You get to pick out which ones you want to keep in that box which ones you want to take back and basically you get a discount for the more clothes you buy that were actually in that box that was sent to you you get to give feedback and the program is just absolutely amazing it's definitely an artificial intelligence heavy program that also involves some human control i think it's really a special business model here okay net revenues for the latest quarter came in at 443 million that is an 11 increase year over year and you think

About it right clothing sales are down massively right now right i mean especially over the last couple quarters because most people just aren't going places doing things that they would usually buy a lot of clothing for including work and weddings in big birthday parties and holiday celebrations all sorts of things that's just been completely shut down for the last i don't know six months or so right and so you can't think of a worse scenario for clothing sales and this company's grown eleven percent like look at every single other

Company in the clothing space they're all down massively and this company just grew 11 in their latest quarter they reported active clients grew nine percent year-over-year so they're getting even more clients through the door net revenue per client even actually increased two percent year-over-year on an adjusted basis that's pretty amazing in itself right the company did take a net loss mainly based on the fact that his company is spending heavily right

Now to invest in his business for the next decade of growth essentially and as well as aronie rona just messing up a ton of things in their business model as most companies have been kind of messed up here in the short term this company's balance sheet phenomenal 143 million dollars in cash 143 million dollars in short-term investments 95 million dollars in long-term investments and no long-term debt on this balance sheet an amazing balance sheet okay remember i talked about the business model this is

Always the most important thing whenever you go into any investment and specifically if i'm getting involved with the gross stock it has to be an attractive business model the amazing thing about stitch fix is business models i think they're the first company really in the apparel space to make artificial intelligence a serious thing with their business model because they're taking in so much data and that data can basically tell you like what type of clothes this person

Will like what type of size will fit them perfect all those sorts of things so you add the data science which is essentially artificial intelligence with the buyers and the stylists and it makes for actually a very magical business model i had my eyes opened up to artificial intelligence actually using the pandora app okay and even all these years later even though i have an apples music subscription all sorts of things i still use pandora on a regular basis why is this because artificial intelligence that's in

Pandora is magical and especially if you give it a ton of feedback like you thumb up your thumb down songs you skip songs that you don't like things like that also it starts feeding this algorithm of artificial intelligence and it creates actually an amazing listening experience and all it takes is like a matter of few days or a week or so and next thing you know i have this station that's like unbelievably curated and just plays song after song

I will like and that's magical and so i feel like that's the type of business model we're talking about in terms of at least artificial intelligence using it so that they know exactly oh this person is going to like this type of clothing and you know other companies use artificial intelligence on a high level we just don't know it okay the platform you're watching youtube is arguably the top artificial intelligence platform in all of the world you're watching this on right now okay amazon uses artificial intelligence on a very high level

And stitch fix is right there with these guys at least it's just not a big company like those are yet right but in terms of using artificial intelligence to actually have the business model perform very well stitch fix is doing that i think that makes it a magical business model they're looking at all this different data right the client data the merchandise data the feedback data you give so if you don't like something you can explain like why you don't like it and the more feedback you give stitch fix the better off you're going to be as a

Customer of stitch fix essentially and so through the artificial intelligence program it can actually give you like a percentage that this person will actually like this item like there's a 63 probability they will like this dress or this code or something like that that is magical because it's just not things that other companies have in this space then if you're the stylist you can look at the client profile you can look at historical interactions you can look at the merchandise data you can

Look at recommended algorithms all those things like that it's absolutely amazing all right so they have a powerful growing client base with millions of active clients what was it 3.5 million right significant revenue growth at scale we'll look at that revenue growth in just a moment all right strong client retention drives recurring demand and visibility remember i talked about how powerful these artificial intelligence programs are i mean youtube amazon pandora and then if you get in with stitch fix and

You start using this regularly that they're artificial intelligence so powerful they're going to continue to send you clothing items that you actually like okay strategically investing in long-term growth and brand building capital efficient business model with high inventory turnover they've demonstrated operating leverage that enables further profitable upside look at the numbers here okay active clients from 2017 they were about 2.2 million to now they're over

3.5 million revenue has grown from 977 million to 1.7 plus billion dollars over the past few years net revenue per client has climbed from 2017 445 dollars to 486 dollars is where it is at now okay now they're already under their fiscal 2021 now at this point of stitch fix so analysts expect this company to grow 17.5 percent in fiscal 21 i think they're going to grow 20 plus and as far as 2022 their fiscal year

2022 analysts believe this company will grow 16.6 i believe they will grow 20 plus in 2022 as well so i think those numbers are low the other numbers i think are low you know let's have this company losing money i think they're actually going to make a profit this year it's going to be a very very small profit but i think they're going to make a small profit in fiscal 21 and then pushing into fiscal 22 i think the profit will be quite

Accelerated from what analysts have right now and i think if that happens i think this is going to be a stock that really really starts moving ahead of me okay katrina lake is a ceo over there and she's a very good ceo this is a founder-led company you guys know i love companies that are founder-led there's just a difference and if you look at even like historical standards on founder-led companies and their stock performance over time versus non-founder-led companies it's quite substantial okay i absolutely

Love founder-led companies and she's a really good ceo she's been in the public markets for several years now and she's proven that she can continue to lead this company and the last thing that made me really convinced on her other than just being in the public markets for a few years and seeing kind of how she's navigated all this is she made a very tough decision recently which was to lay off 1400 stylists in california to basically have stylists in other places that are more affordable okay

Maybe my city vegas right out in texas there are a lot of markets out there where you can hire style especially since it's kind of remote work right where you can get them just for so much cheaper than employees for so much cheaper that can do just as good of work if not even better work because sometimes a market like san francisco and california in general can be just so competitive and never mind that you have you know different tax situations it's just it's a you know from what i hear from

Business folks out there time and time again is california is a tough place to do business nowadays for many various reasons and i saw her make a decision like that and i said that's a tough decision man but that's the type of thing that you have to make those type of decisions if you want to build a massive company you have to be able to make the tough decision you can't make the tough decision in big business you will end up eventually getting shuttered down and that's just the way

Business is it's dog eat dog and yeah that decision really made me just love stitch fix more than ever so i definitely love that stock it's definitely stock i'm interested in buying more and more of this month it's a stock i just started buying very recently and i can continue to add to that one for hopefully weeks if not months to go in to the future all right stock number two of three up here of stocks i'm buying october 2020 edition is another founder led company oh man

You know i love the founder-led companies right uh this man drew houston do you know him he's the ceo of this company we're about to get into he's a billionaire he's homies with the zuck benioff he's investing companies with jeff bezos and the ebay founder and just uh you know well connected gentleman who's doing a phenomenal job leading his company now in the public markets it's dropbox ticker symbol dbx on this one 19 stock it is the most attractive risk reward profile in the entire

Stock market that i can find right now okay the chances i lose money in the stock over the next five years almost non-existent and the chances i double or triple or more of my money over the next five years in a stock extremely high in my opinion okay so dropbox cloud storage that's kind of always been their thing right but now they're moving into even more of a smart workspace place over the past you know year or so and this is something they're going to continue to innovate on they got new products and services coming out later

This year as well as moving into 2021 and so this is a really really exciting business model at a really really compelling valuation and i've noticed when i go into my dropbox which i use dropbox pretty much on an everyday basis i notice they're cross-promoting their products on a way higher level than they've ever done before in the past let's just put that way it's not even close so a company was 600 million registered users and only 15

Million paying users every single month pretty much for dropbox the paying users increase and increase and this company has almost unlimited amount of paying users to go after over the next three five seven 10 plus years this company has at least a decade plus of growth in front of them just with the products they have in the market now never mind if they continue to launch some game-changing products over the next you know several years just off of what they have now this will

Be a company that has endless growth for the next five ten years eighty percent of their subscribers use dropbox for work this is huge okay you wanna know what else is huge is they're doing deal after deal with colleges this deal was just announced pretty recently it was kind of on the dl the arizona state university i did a deal with the university of michigan and this basically means the students there use it and the faculty uses it why is this so big and they've done a lot more deals with colleges recently this is going to be something they

Continue to expand into in a real major way why is this so big well you want to get college kids using dropbox as their cloud and as their smart workspace because if college kids start using this all the time guess what they're going to end up graduating they're going to get into the workforce or go start companies and guess what if they're already used to and love this product they're going to continue to use it it's not going to be like oh no now i'm going to switch to something

Else no dropbox has a phenomenal product in my opinion i've tried all the cloud products out there and they have the best cloud product in my opinion out there in terms of easy use just being able to open it send it to anybody you need to send it to it opens you can download it's just like everything is so cake on that and so with all these college students graduating over time they're just going to end up using dropbox out there in the real world unless their company is tied in

With you know something like a microsoft team just something like that and they you know doesn't make sense outside of that type of scenario i think you know this will be a huge growth vector and this is a very intelligent a very intelligent move on dropbox it's one of those things it doesn't show up huge in the numbers short term but when you play this out long term it gets pretty dang interesting i just started investing this company in the past month or so and this is a company i've been using

For over five years now dropbox i absolutely love it and it's still stuck around i basically started using that back when i had my real estate marketing company i would send photos videos to clients i tried the different products that were out there at the time and dropbox was just the easiest by far for me to use and for my clients to use all my different customers i had in that real estate marketing business and i still use it for all my cloud stuff today like uh you know we have like coaches in my private stock group and things like

That if i need to communicate with them like send them over a voice message i do it right through dropbox it's so easy right on my phone just hit the record button automatically uploads to the cloud boom copy link send it over to them it's cake students like i get like tons of emails each and every day and dms from people that are in my private group and a lot of times i'll just respond because way easier especially if it's a complicated message i have to send out there i'll just do it basically on a

Voice memo right in the dropbox and it's what i use for my cloud overall i love that product and i've loved that product for five years now and you know it's grown with me and i have absolutely zero percent interest in leaving dropbox because i've tried what else is out there and i'm just like this is just the easiest it's just the best in my personal opinion okay now dropbox what what they're doing right now i think is is just huge okay they're trying to build the world's first smart workspace that people use on an everyday basis

Where you can leave comments where you can pick up a file so let's say you're using a file with somebody right and you guys are working on it together and you know you save it back in dropbox things like that you can actually see the activity that somebody was doing with that you can see where that file was shared and when you think about a team experience especially if a small business you know this is type of stuff that's really really big and this is the type of stuff that wall street isn't even

Like understanding or can't even comprehend how big this is yet okay remember wall street they couldn't even they couldn't even wrap their head around how facebook was going to make a ton of money back in 2012 okay never mind you know working on the first smart workspace they can't wrap their head around this they'll wrap their head around it once it's already deployed out there in a major way okay and the amazing thing with their business model is it's all about self-serve right they're trying to land

And then expand so you think about it right they got me to start using their product back in 2015 when i started my real estate marketing company right and that's what i used and that's what i would send to all the different realtors i'd work with right i'd get the photos done video jobs done whatever i was doing send it through dropbox those folks always had a very easy time basically downloading them i never had real issues like oh i don't understand how to use this or understand how to do this or this

Doesn't work with my computer no it was like cake for them and then imagine how many of those folks ended up signing up for dropbox and using that as their cloud because they had a good experience because i introduced them to that right that is the magic and the business model the other magic in the business model is like i said unlimited growth with this company 350 million potential high value targets so let's assume for the next 10 years not one person on this planet signs up as a new user of dropbox okay

Even if that was to occur there will still be massive growth for dropbox obviously that's super unrealistic that no one's going to sign up for dropbox anymore but even if we play that scenario out there's still ridiculous amounts of just current dropbox users that are on free packages that will end up upgrading over time essentially so i mean you know they just have a small fraction of what they will have in future years there's unlimited growth there and then they bought hello

Sign a couple years ago this deal i think kind of went on the dl and i think hello sign's gonna be the number two player in e-signing of documents long-term and this is a massive market and there's basically native integration now in dropbox with this this is a game changer you look at docusign right docusign's the number one player in this market and while probably continue to be the number one player for maybe ever and ever as long as they stay you know hungry essentially unless hello sign somehow

Takes him out which i don't i'm not projecting that at all okay but docusign is a 41 billion market cap on it right now 41 billion their number one player there hello sign long term i think will be the number two player there and dropbox as the entire company right now has an 8 billion dollar mark cap on it so needless to say dropbox has massive and when i say massive i'm talking about gargantuar upside potential here it's a company that integrates very well with slack they integrate very well with

Zoom and they integrate very well with basically everybody they're an open ecosystem they love to work with everybody and i think that that business model of being an open ecosystem could be very big long term with businesses not like every business is just going to want to sign up for one company and give that company all the power people want best of breed products and sometimes you know the big dog they don't have the best of breed product and actually usually they don't

Okay usually it's a lot of these other players that are just focused on that okay now financial highlights 19 year over year growth in 2019 operating income obviously has exploded over the past several years as far as the latest quarter 16 year-over-year growth in q2 2020 that's very nice revenue growth 16 right operating income up massively as far as long-term target models they're looking at gross margins of 78 to 80 so we're talking about is on a non-gaap basis by the way we're

Talking about gross margins that you know it's hard to find with a lot of other companies out there and companies targeting long term for annual free cash flow of 1 billion plus dollars all right the main competition for dropbox for the past decade has been google drive box onedrive from microsoft that will continue to be the main competition in my opinion for them and over the next decade they've competed very well they've absolutely grown this business year after year after year

After year all the way till now they're still growing like a beast and it's a competitive space everybody wants to win it right and everybody wants to be a big player there but ultimately at the end of the day dropbox is doing a phenomenal job in that space okay no true long-term debt on this company cash and cash equivalents of 334 million short-term investments of 783 million 1.2 billion dollars in total current assets on that balance sheet absolutely amazing like i stated at the top of this one okay dropbox is the

Number one risk reward stock in the stock market in my personal opinion i can find out there as of today there's not a more attractive stock i can find from a risk reward profile i mean there's some stocks out there that feel like might have more upside there's definitely plenty of stocks i feel like might have more downside but like i said i'm investing this company i'm putting my money in i continue to put in my money in october and i'll probably continue putting my money throughout the rest of 2020 if not in 2021

In the stock and when i look at it just at the end of the day the chances i lose money in this stock is so ridiculously low and the chance that i double triple or more of my money over the next five years is ridiculously high and when i get those type of risk rewards i'm gonna take that every single time all right alrighty guys those are the first two up there now for number three so basically i have three probably three probably that i'm going to tell you about now okay these three stocks are

Are you know going to be probably biased but they're not for sure stitch fix dropbox those are for sure me i will definitely add those stocks in october these three i'm about to share with you here or i'm gonna probably add them in basically october 2020 especially if either of these stocks or any of these stocks see any type of material drops in their stock prices that will really make me jump on these okay the first one of these three probabilities is the fb the fb okay money just ends up there

Constantly first off the stock seat's still easy money i mean it's just still easy money i've been calling stock easy money since it was 100 something dollars a share it's 200 something dollars a share it's still easy money it's at a 23 4p the top five balance sheet in the world arguably the most powerful products in the entire world this company owns right facebook instagram whatsapp i mean and then you think about vr long term and ar with oculus oh my gosh okay

And money just ends up there constantly so i mean you think you're about at your local restaurant you do really great where are you putting ads you're putting ads on facebook and instagram okay any type of business any type of business out there when you make a bunch of money and you're going to spend on advertising where you spend money you're spending money on facebook and instagram that's just what you're doing if you have a brain and you know anything you know anything about marketing okay i can tell you i don't have time to build like an

Organic audience on facebook like i'm maxed out between youtube looking at stocks all the time and my private stock group so i don't have time to like build an organic facebook audience so we run ads on there and look at this we just spent 750 and another 750 that's just today right yesterday we spent 750 so there we are we just spent over two thousand dollars in a matter of what a 24 hour 48 hour time period on the fb and that's just giving myself back money essentially at the day

Because you know facebook's an amazing business model and we'll continue to do that as long as it basically gives us a positive roi if we wouldn't be doing that if we didn't get a positive roi from this obviously okay so fb phenomenal the number two of three probably out there for me is upwork ticker symbol upwk now this stock just hit its 52-week high very recently and you know i don't like to buy a lot of stocks that are 52-week highs

But at the same time this is going to be possibly the biggest player in the freelance economy which is something that continues to take off and will continue to take off for the next you know at least decade if not several decades into the future and they're going to be possibly the number one player in this market and i'm looking at this company a two billion dollar valuation for arguably what will be the most powerful freelance economy company in the world long-term rate or at least up there and i'm

Looking at the stock and i'm like i haven't bought nearly enough of the stock yet right i got 15k worth of shares in one account that we're up 39 on i got another 15k of shares that i'm up 52 on on another account i'm like i haven't been buying the stock nearly heavy enough i need to add this one aggressively because i think this is the type of company that's going to have a 5 10 maybe even more than a 10 billion mark cap on it over time and when you're at two

There's a long runway for growth in front of it so that's number two or three probability there in upwork got to buy more of that one and the last probably of the bunch number three of three is switch ticker symbol swch amazing data center company that gives you the ultimate protection especially if you're a big business or mid-sized business in terms of you want to have your servers and things you don't want on the cloud you want in a very safe and secure place

That that you know electric is very low cost you go to switch for that okay this is a company that i covered on four stocks 15 or less that are buying now i basically released that video about two weeks ago i went really into detail into switch stock in that video as well as a few other stocks so if you want to check out that morning's detail check out that video you can just literally type that on youtube or go to my youtube channel and you can actually watch that video if you

Didn't get a chance to see it i talk about a few other stocks in that one as well but i definitely talk about switch in that video there hope you guys enjoyed today's video as always if you don't want to smash a thumbs up that helps out the youtube channel in a massive massive weight and it is free to do as well as if you love stock market related content go ahead and subscribe don't forget check out some resources linked in the description if you are interested i got some really powerful

Videos down there for you to check out thank you for watching and have a great day

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