Looking for growth? Check out these options…
The post Why Afterpay (ASX:APT) and this ASX share could be top growth options appeared first on The Motley Fool Australia. –
Luckily for growth investors, there are a lot of quality companies out there that are growing at a rapid rate.
Two top options for growth investors to get better acquainted with are listed below. Here’s what you need to know about them:
Afterpay Ltd (ASX: APT)
Afterpay is a buy now pay later (BNPL) focused payments company. While it may not officially have been the first BNPL provider, it is the company that popularised the payment method, becoming a verb in the process.
Pleasingly, with credit card usage declining rapidly among younger demographics, BNPL looks likely to be here to stay. This bodes well for Afterpay and its sprawling operations, which cover the ANZ, North American, UK, and European regions. The company also has its eyes on the Asian market and is testing the waters there.
But Afterpay isn’t settling for that. It will soon launch the Afterpay Money app, which extends beyond BNPL and into saving and cash flow tools. There’s even speculation it could eventually offer home loans to its millions of active customers. And given the amount of valuable consumer data it is generating, the options are endless for the company.
Analysts at Ord Minnett are very positive on its outlook and are forecasting strong growth over the coming years. As a result, the broker recently put a buy rating and $150.00 price target on the company’s shares.
VanEck Vectors Video Gaming and eSports ETF (ASX: ESPO)
Another option for investors is actually an ETF filled to the brim with growth shares.
The VanEck Vectors Video Gaming and eSports ETF gives investors exposure to a portfolio of the largest companies involved in video game development, hardware, and esports. This means you’ll be buying a slice of companies such as Activision Blizzard, AMD, Electronic Arts, Nvidia, Roblox, Take-Two, and Tencent.
In respect to Nvidia, it sparked the growth of the PC gaming market in 1999 by redefining modern computer graphics and revolutionising parallel computing. Since then, its GPU deep learning ignited modern artificial intelligence, which is the next era of computing. It also creates technology that helps mine cryptocurrencies. This means investors can gain indirect exposure to the crypto boom through this ETF.
VanEck notes that these companies are in a position to benefit from the increasing popularity of video games and eSports. Furthermore, it highlights that the fund gives investors the opportunity to diversify their portfolio by providing tech options outside the popular FAANG stocks.
Should you invest $1,000 in Afterpay right now?
Before you consider Afterpay, you’ll want to hear this.
Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Afterpay wasn’t one of them.
The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.
*Returns as of May 24th 2021
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended AFTERPAY T FPO. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO. The Motley Fool Australia has recommended VanEck Vectors ETF Trust – VanEck Vectors Video Gaming and eSports ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.