4 Growth Stocks I'll Be Adding To
I touched base on four of my favorite publicly-traded growth companies out there right now in my most recent Motley Fool article.

Two are more hypergrowth style, and two are steady-Eddie types with fair prices -- all are down around 40% to 65% YTD.

A one-sentence takeaway for each:

  • $SOFI - Building the rails for fintechs (neobanks) to operate on while building a broader consumer-facing (banking) flywheel.
  • $TREX - Feel-good, sustainable decking products, matched with a great valuation (PE of 21) and a history of stomping the market.
  • $YETI - Unaided brand awareness continues rising, cult-like following persists amongst its fans, and a PE of only 17.
  • $GLBE - Landed $DIS as a partner to help expand their global DTC sales -- an incredibly positive sign for Global-e's future and hopefully a harbinger of things to come.
Which company posts the best returns through 2032?
38%Global-e Online
21 VotesPoll ended on: 09/02/22
Tough choices. Big fan of $YETI as a company. Lean employee numbers give it top notch margins. Excellent management gives it >50% ROE and so far solid capital management, paying down debt when it’s stock is overpriced and bought back shares decisively once it dipped over 50%, completing total buy back program in 1 quarter.
$TREX will likely be the next new add for me. Been wanting to buy for 3+ years but just couldn’t when it’s PE was 40-60. But with a PE of 21 and a big revenue guidance downward. I think in the next 6 months will be a great time to be a long term share holder.
Global -E has been on my watch list since IPO. Love financial middlemen. Still watching. Do you worry about there recent 10x increase in SGA to maintain its revenue growth. SGA 9, 11, 19 million for 2018, 19, 20 (about 10% of revenue). This jumped to 126 million in 2021, 51% of revenue.
Banks are too depend on the fed for their cost of capital. I’ll likely never own a bank.
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Erick Mokaya's avatar
$102.4m follower assets
What Moves This Stock: Global-e Online
Cross-border, direct-to-consumer enabler $GLBE will report earnings next Tuesday, and it could be a particularly insightful call for two key reasons.

First, we should receive the first full quarter's worth of information regarding GLBE's partnership with $SHOP, which emerged from its pilot phase in April this year and is now available to most Shopify merchants.

As of fan of and investor in Shopify, I am curious to see how this collaboration progresses. It makes sense for SHOP's international expansion and seems like it could be a game-changer on Global-e, being the smaller of the two.

It also highlights what may be a powerful moat for GLBE, as SHOP has shown its preference to partner with and invest in the company -- rather than try to replicate GLBE's tedious operations within its own walls.

Second, Global-e's gross profit margin has been expanding beautifully over the last two years (aside from the standard drops following the holiday season in Q4).

With any luck, I would love to see these margins improve and turn GLBE into a rare, rapidly-growing, FCF-generating stock.

Already FCF-positive (although partially due to stock-based compensation), GLBE's cash generation abilities could become very promising as the business matures.

Having grown Q1 2022 revenue by 65% -- and guiding for 46% growth in Q2 -- this positive FCF is exciting at such an early chapter in the company's growth story.

What are your thoughts on Global-e Online and its worldwide DTC ambitions?
Will Global-E Online beat the S&P 500 over the next decade?
35%Would rather buy Shopify
14%Would rather buy Amazon
14 VotesPoll ended on: 08/16/22
Global-e $GLBE Borderfree Acquisition
Now that this acquisition is official, I wanted to share my thoughts as a $GLBE shareholder.

This is the second sizable acquisition Global-e has made this year alone, the other being Flow back in January. Together these acquisitions total around $600M, more than half of which has been paid for with cash. For reference, $GLBE brought in $245M in revenue in 2021.

The Flow acquisition was interesting because it emphasized Global-e's commitment to providing optimal solutions to small & medium-sized businesses (emerging brands).

This Borderfree acquisition solidifies a partnership with Pitney Bowes, who will now deliver cross-border eCommerce logistics services to Global-e clients. This deal is expected to generate $40M in revenue in 2022. Borderfree is considered a leading cross-border eCommerce solutions provider in Argentina, Ecuador, Pakistan and Serbia, so the hope is that this acquisition will further expand Global-e's leadership to these markets.

In a time when many are pessimistic about eCommerce, it is encouraging to see $GLBE aggressively invest in growing the business, as these acquisitions will provide the opportunity for a larger customer base. The looming danger comes in the form of fallout from global inflation and recession. If eCommerce continues to slow on a global scale, the company would certainly feel the pain and the recent strain of these acquisitions could provide added pressure.

For other $GLBE investors, how do you feel about the string of acquisitions this year?
$GLBE may well be one of my most exciting current holdings.

Its newly launched operations with $SHOP could prove to be massive.

Global-e adjusts to, and processes all the gross, difficult things that are associated with selling on the international level. Think local customs, taxes, shipping, currencies, languages, regulations, payment systems, gov'ts, etc.

These adjustments simply cannot be made effectively by 99.9% of entrepreneurs and is increasingly becoming a more valuable proposition to many major global brands.

This value is already creating a really unique and strong moat -- one that could become increasingly powerful, should it stick the landing with Shopify and expand upon these more recent acquisitions/partnerships.

Still a fairly risky proposition as investment, being so young, but massive upside and optionality potential.
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Josh Kohn-Lindquist's avatar
$24.5m follower assets
Love Shopify? 3 Other E-Commerce Stocks to Buy
I participated in my first roundtable with two of my fellow Motley Contributors: Bradley Guichard and Jeff Santoro. We discussed three e-commerce stocks (not named $SHOP) that we liked: $CHWY, $ORLY, and $GLBE.

This roundtable was fun as Chewy and O'Reilly are two stocks on my watchlist that I have been considering buying -- and Bradley and Jeff's write-ups may have tempted me to take a starter position once trading restrictions allow.

I'd love it if you took a look and supported my fellow Fools. 🙏
Josh Kohn-Lindquist's avatar
$24.5m follower assets
4 E-Commerce Stocks to Hold for a Decade
With e-commerce stocks selling off as if the idea of the industry is waning, I think it is important to revisit some of my favorite companies in this niche for the next decade.

$GLBE Global-e Online sits at the intersection of direct-to-consumer sales and international growth -- a wildly valuable niche for many brands seeking new customers.

$ETSY Etsy still looks incredibly cheap to me, trading at 23x earnings, and with its new ventures in Elo7 and Depop just starting their journey.

$CPNG Coupang is a play on South Korea's population density and tech-savvy Populus. It could be an exciting lesson in network effects built out through logistical infrastructure, a la $AMZN, if it can continue boosting margins over time.

$MELI MercadoLibre is an absolute behemoth of a stock with e-commerce, logistics, fintech, and credit operations. This expansion has weighed on the company's FCF lately, but down over 50% from its highs, its premium valuation looks more tempting.
Which performs the best over the next decade?
25%Global-e Online
24 VotesPoll ended on: 06/11/22
Beaver Capital's avatar
$98.6m follower assets
May'22 - Growth Portfolio Update
Sells: None

I am confident in my portfolio right now, but I am doing some research on my watchlist: $DLO $GLBE $SNOW $DDOG $NU $S $APPS

YTD return: -30.9%
  • Another tough month for growth, but saw some rallys near end of May which was encouraging. Currently have some cash ready to deploy so I will continue to add on weakness.
  • Stay positive out there friends!

*can't link portfolio on CS currently due to not being in US.
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