While new stocks tend to be riskier than more established companies, they can deliver market-beating returns if you time your purchase correctly. For investors with a higher risk tolerance, new stocks can be especially exciting. We recently reviewed two new crypto projects that could prove to be very lucrative. If you invest in crypto early, you can potentially see returns far exceeding the typical stock market.
Grab Holdings could be one of the most popular penny stocks in 2022. The company’s fiscal 2021 results showed an increase in revenue of 44% and gross merchandise volume by 29%. The company also posted a $3.55 billion net loss, but investors should keep in mind that it has been on an acquisition spree. Recently, the company has partnered with Starbucks and McDonald’s.
Another new stock that’s a great option for investors is Nikola Corporation. This company focuses on electric vehicles, and its automobiles are available in pickup trucks, semi-trucks, and cars. This company is aimed at the blue-collar sector. While Nikola Corporation did not make any money in 2021, it did begin to deliver its first Nikola Tre vehicles in February 2022. The company expects to sell more of these vehicles during the second half of 2022.
As a result, many investors have pulled out of high-growth stocks and moved towards lower-risk investments. The company’s share price has fallen by over 70% in a year, likely due to supply chain issues, rising input costs, and consumers cutting back on spending. Further, it is likely that McDonald’s decision to cease production of its McPlant burger has also weighed heavily on investor sentiment.