Despite the rising interest rates prompting a shift towards more conservative investments, four growth stocks - Celsius, Symbiotic, Grab, and Monday.com - are still expected to yield significant returns for long-term investors as of Friday.
Celsius, an emerging competitor in the energy drink sector, has seen its revenue increase by a compound annual growth rate (CAGR) of 78% from 2017 to 2022. A recent distribution agreement with PepsiCo (NASDAQ:PEP) is projected to further boost its revenue by 92% to $1.25 billion in 2023. After a net loss of $199 million in 2022 due to a one-time termination fee paid to its former U.S. distributor, analysts predict that Celsius will report a net profit of $145 million in 2023.
Symbiotic, a producer of AI-powered automated robotics for warehouses, entered the public market last year through a merger with a special purpose acquisition company (SPAC). The company's revenue increased by 136% in fiscal 2022 and is expected to grow by another 83% in fiscal 2023. Symbiotic also anticipates profitability on an adjusted EBITDA basis by the fourth quarter of fiscal 2023. The company claims that a $50 million investment in one of its modules can generate $250 million in savings over 25 years.
Grab, the Southeast Asian ride-hailing giant with operations in food delivery and digital payment platforms, saw its revenue and gross merchandise volume (GMV) increase by 44% and 29%, respectively, in 2021. These figures grew by another 112% and 24%, respectively, in 2022. The company projects its revenue to grow by another 54% to 61% in 2023. Despite currently operating at a loss due to its reliance on loss-leading incentives to expand market share, Grab aims to reduce its adjusted EBITDA loss from $793 million in 2022 to $30 to $40 million in 2023.
Monday.com, a cloud-based platform enabling companies to create custom work management and automation apps, went public two years ago. Its revenue grew by 91% in 2021 and 68% in 2022, with an anticipated growth of 37% to 38% in 2023. After becoming free cash flow positive last year, Monday.com is expected to report its first full-year profit on a non-GAAP (adjusted) basis this year.
In summary, these four growth stocks offer potential substantial returns for investors who can weather short-term market fluctuations despite the financial volatility.
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