HomeMarket NewsThe Fortunes Hidden in the Shadows of Consumer Stocks

The Fortunes Hidden in the Shadows of Consumer Stocks

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β€œGreat ideas come from everywhere if you just listen and look for them.” – Sam Walton, legendary founder of Walmart

Consumer stocks, like treasures hidden in plain sight, offer investors a unique advantage – familiarity. By leveraging their firsthand experiences as consumers, investors can navigate the market terrain with a secret map of likes and dislikes guiding them to potential goldmines.

Spotlight on Spotify

First up is Spotify Technology (NYSE: SPOT), a stock that has soared an impressive 196% over the last 18 months.

A jar full of $100 bills on a wooden table.

Image source: Getty Images.

Spotify has doubled its revenue over the past five years, reaching over $14.3 billion last year, with 86% of revenue from subscribers and 14% from ad-supported listeners. With a strategic focus on converting ad-based listeners into subscribers, the company has seen 15% year-over-year growth in premium subscribers, spearheaded by Latin America.

Riding the Wave with DraftKings

Next in the limelight is DraftKings (NASDAQ: DKNG), the mastermind behind a digital sports betting platform riding the tidal wave of legalized sports betting sweeping across the nation.

Infographic: The State(s) of Sports Betting in the U.S. | Statista

With the proliferation of sports wagering in 38 states, DraftKings’ revenue has skyrocketed, crossing $3.7 billion in the last 12 months. Analysts project revenue to surge further to $4.8 billion this year and $5.7 billion in 2025, positioning DraftKings as a formidable player in the competitive sports wagering arena.

The Amazonian Dynasty

Lastly, we turn to Amazon (NASDAQ: AMZN), a tech and e-commerce giant that continues to evolve, ensuring a bountiful future for both the company and investors.

Amazon’s ability to adapt and grow through various incarnations, from an online bookshop to a cloud services juggernaut, demonstrates its knack for consistent performance, akin to a reliable base hitter in baseball, securing runs steadily rather than seeking grand slams.

AMZN Free Cash Flow Per Share Chart

AMZN Free Cash Flow Per Share data by YCharts

By making astute decisions to cut costs during periods of fluctuating demand, Amazon has maintained robust financial performance, exemplified by a recent quarter where key metrics like free cash flow per share rebounded impressively.

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