This article was originally published on Fool.com. All amounts quoted are in US dollars unless otherwise stated.
Successful investing involves choosing top companies, buying their stocks at a reasonable price, and waiting for them to come back and work their magic for years.
But that’s not the only way to do well on Wall Street. If you are willing to accept some risk, you can make a huge fortune by investing in big business investments today. In the best countries around the world, you will start receiving these long-term winners before many investors start to make a big hit in the future. You can be empty with this method, and the method is best used as a small part of various products. But if you find a real winner early on, it can be a game changer than creating a series of upsets.
With this information, let’s take a look at a few stocks in the growing Artificial Intelligence (AI) market that can make you a millionaire quickly. Everything has to go well, and you have to start with a lot of money to get on the shortcut to the millionaires’ club. Pa, Life 360 (NASDAQ: LIF) (ASX: 360) and Duolingo (NASDAQ: NEAR) It is also worth taking a second look as they develop their long-term plans around AI technologies.
Life360 expansion plans
Life360 may already be a household name. You may have been using its services for years, and the company has been publishing financial results since 2019. The family and pet real estate search engine has not been in the American market for a long time. Headquartered in Sydney, Australia, Life360 listed its shares on the Nasdaq stock exchange four months ago.
This product is flying under the radar of many investors, and you probably don’t think of Life360 as an AI specialist. But it has about 71 million monthly active users (MAUs) in 170 countries, including 2 million paid subscribers and 10 million location-based devices. The Life360 mobile app leverages heavy-duty AI for risk detection and digital security services.
The company aims to increase its user base while tripling annual revenue from $328 million to $1 billion over the next few years. Earnings before interest, taxes, depreciation, and amortization (EBITDA) are flat today, but management predicts a 25% EBITDA margin over time. Innovations and service features should appear over time, increasing the company’s interest and increasing its high-quality sales.
The Investment Case for Life360
So there’s a big story going on here, powered by Life360’s AI technology. The company’s annual sales are expected to nearly triple from $113 million in 2021, reaching a compound annual growth rate (CAGR) of 53.5%. However, you can buy the stock at a lower price of 9.9 times the sale price.
This ambitious company has a market cap of $3.3 billion today. I can’t guarantee that Life360 will achieve its goals anytime soon, but the stock price should rise if the company comes close to what it wants. If high user engagement leads to strong long-term growth, the company is moving in the right direction. According to market reports from Sensor Tower, the Life360 app inspires many people who use it on a daily basis.
Duolingo’s innovative learning platform
One of the few companies that can challenge Life360’s massive threat is Duolingo.
The language learning platform with the meme-inspiring green owl mascot has 100 million MAUs and 8 million paying subscribers. Under the visionary leadership of CEO and co-founder Luis von Ahn, Duolingo has mastered the art of making repetitive learning fun. Adding game features like achievement badges, players of the week, and “gems” have made the game more fun in general.
The most important thing is to use it every day, of course. Almost 130 Duolingo users have remained alive for over 11 years and my unbroken streak goes back to June 2016.
I’m not fluent in 11 languages ​​after all. I approach the program as a language nerd, comparing and contrasting different language families while taking time to immerse myself deeply in the language.
And that freedom is a key part of Duolingo’s refreshing appeal.
You can take the basics of French or German before going on vacation in Europe. You can look at the value of the Japanese language for years as part of trying to become a fluent speaker. You can play it like a game, and dive into math and music lessons at your leisure. These are legitimate ways to use Duolingo — and the company will make money from subscription fees or in-app advertising at any time.
Duolingo’s AI methods
This startup is leaning towards creating AI, of course. Duolingo Max’s premium subscription features AI-generated conversations in familiar languages, quick AI analysis of mistakes you’ve made in recent lessons, and more. This requires a premium subscription for now, but may become ad-supported later.
“Right now, most of the AI-based products are in Max because it costs us money to serve these people, so they’re at the highest level,” von Ahn said in a recent phone call. “We expect that the price of some AI products will drop because the price of large models (LLMs) will drop. At that time, we can make a decision that some of the products are for Super subscription. or even the free part.” (Slightly edited for readability.)
This fun learning platform is attracting a lot of users, as we said before. The number of MAUs was up 40% year-over-year in the recently reported second quarter. Paid subscribers increased by 52%. Investors are starting to take notice and Duolingo’s share price has increased by 69% in the last year. However, you may be looking into the future of the Internet learning giant and the last to reach far away from the language learning market. The $12.6 billion market cap you see today may look cheap in a decade or two.
This article was originally published on Fool.com. All amounts quoted are in US dollars unless otherwise stated.
#Artificial #Intelligence #stocks #Millionaire