2 unstoppable stocks to buy even if the market collapses
Tuesday the S&P 500 No doubt scared investors and raised concerns about a possible stock market crash when it fell 2% and had its worst day in months. Fears of a stock market crash never seem to be too far away given that the index has climbed more than 50% since March 2020, when the pandemic struck, sending many stocks to all-time highs.
But there are some stocks that you shouldn’t worry about in the long run just because their trajectories seem so solid. And if the market collapses, it could make them buy even better. Two of these stocks are Green thumb industries (OTC: GTBIF) and Facebook (NASDAQ: FB).
1. Green thumb industries
Cannabis producer Green Thumb Industries is one of the dominant multi-state operators in the United States. It has several branded cannabis products and 16 manufacturing facilities, and it opened its 65th retail outlet (and third in New Jersey) this month.
One of the main reasons this business will not stop growing is simply its potential; As more states legalize marijuana, it will have more room to grow. New York and New Jersey only legalized recreational pot this year, but sales won’t start until next year (although medical marijuana is currently available for sale in those states). With Green Thumb already present in these markets, it is ready to take advantage of these opportunities as they arise. To date, 36 states and four territories allow medical marijuana, and 18 states plus two territories have adopted legislation for cannabis for adult use. Markets such as Pennsylvania, Ohio, and Florida are examples of large states that have yet to pass recreational marijuana legislation, but may do so in the next few years.
But there is something to keep Green Thumb busy at the moment. When it released its second quarter results in August (for the period ending June 30), its revenue of $ 221.9 million increased 85.4% year-over-year . It was also the fourth consecutive quarter that its net income was positive, at $ 22.1 million. It was also the sixth consecutive period that its operating cash flow was positive. These are all important considerations for a growing business, because not only does high cash flow minimize the need for frequent share issuances (which dilute shareholders), but it can also help a business grow and grow. to undertake mergers and acquisitions. This year, Green Thumb made three acquisitions, which helped it expand its operations in Massachusetts while also giving it a way to enter Virginia and Rhode Island.
Green Thumb approaches $ 1 billion a year in revenue, and with an impressive bottom line, it’s easily one of the best MSOs to invest in right now.
Social media company Facebook is another business that investors don’t have to worry about in the long run. While there is usually no shortage of issues and controversies surrounding the business, its underlying business is solid.
The latest bad press concerns anti-vax content on its platform and an investigation by the Wall Street newspaper this revealed that using Facebook often made people angrier because of the content, suggesting that its algorithm needs to be improved. Instagram, the photo-sharing app, has also been called “toxic” to teenage girls, according to the report.
But for companies that distribute content, this will always be a concern. Twitter and AlphabetYouTube’s are a few examples of other social media sites where there is no shortage of questionable content. Even news sites are not immune to controversy. An article in The New York Times recently criticized media companies for the “missing white woman syndrome,” which surfaced during Gabrielle Petito’s recent disappearance and all the publicity it generated in relation to missing non-white women.
For any business where news or user-shared content plays an important role, there will always be a fine line between too much font, which will lead to cries of censorship, and not enough, which will suggest that the company does not. don’t care. That’s why I’m not too concerned with the negativity surrounding Facebook, as it will be an ongoing battle to find the right balance that keeps users on its platform while not placing too many restrictions on them.
Ultimately, the proof will be in the numbers if users leave the platform. And judging from Facebook’s second quarter results, that doesn’t appear to be a concern; for the period ending June 30, its monthly active users (MAU) totaled 2.9 billion, an increase of 7% year-on-year. And that’s after a solid Q2 a year ago, when people were stuck inside, and the MAU was 2.7 billion and went up 12%.
Despite the bad press, the company is clearly doing something right to attract users to its platform. And without real competition that offers a similar service (Google+ has been proven and failed miserably), Facebook is in great shape. With profit margins of over 35% and advertising revenue of $ 28.6 billion up 56% in the last quarter and showing strong signs of recovery from a year ago, this remains a business. solid in which to invest for the long term.
This article represents the opinion of the author, who may disagree with the “official” recommendation position of a premium Motley Fool consulting service. We are heterogeneous! Challenging an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.