3 stocks that can turn $ 300,000 into $ 1 million in 10 years

There’s an open secret in the investment world: You don’t have to take big risks to make huge gains if you’re willing to take a long-term approach. Consider that Microsoft the stock has generated a total return of 1,200% over the past decade. The least risky S&P 500 The index has posted a total return of around 300% over the same period, and patient investors who support strong companies are likely to continue to enjoy impressive returns.

With that in mind, a panel of Motley Fool contributors identified three stocks that look set to more than triple over the next decade. Read on to see why they think these companies are on the right track to delivering great shareholder value.

The future of entertainment is interactive

Keith Noonan: Activision Blizzard (NASDAQ: ATVI) has played a huge role in the evolution of the global video game industry, and the company stands out as one of the candidates most likely to benefit from the growing demand for interactive entertainment. No other entertainment medium matches the levels of engagement seen by top game titles, and the major players in the space are likely to continue to deliver big wins to shareholders.

With a market capitalization of around $ 71 billion, Activision Blizzard is not a newcomer to the industry. Franchises including Call of Duty, World of warcraft, and candy Crush Saga stand out as a leader in its category and has helped the company achieve impressive performance in recent years, but the company still has huge growth opportunities in the long term.

The company has a player base of around 400 million users worldwide, but management expects it will be able to grow its audience to around one billion players worldwide. In addition to expanding its audience, Activision Blizzard should be able to take advantage of other new monetization opportunities.

Activision Blizzard has already successfully transitioned some of its largest franchises to the free-to-play (F2P) model. F2P games such as Call of Duty: Mobile and Call of Duty: War Zone have reached hundreds of millions of new players, and there’s a good chance the company will be able to use this model to deliver better performance from other core properties. Better yet, the gaming giant appears poised to capitalize on emerging opportunities in augmented reality, esports, gaming advertising, and e-commerce integration.

This is a great company operating at the intersection of powerful trends, and patient shareholders should see strong returns from the stock.

Netflix won’t be the only newcomer to the game – it’s huge for this game in spades

Jason hall: Recent news that the streaming giant Netflix (NASDAQ: NFLX) planned to enter the video game business sent shockwaves through the industry. And while much of the attention has been focused on Netflix’s ability to enter – and potentially change – the hyper-competitive video game landscape, I think investors are missing out on the greater opportunity to participate in it. who is a parcel companies that play a part of their business or their customer experience.

This is what makes Unity software (NYSE: U) so interesting as an investment. A company “in spades”, Unity does not create games, but rather licenses software that developers and content creators use to create games, analytics tools, an advertising placement platform and an integrated marketplace so that its customers can maximize the economic potential of the content they create with Unity tools.

It certainly works, based on Unity’s sales growth. When Unity released first quarter results in May, CEO John Riccitiello pointed out that the 41% revenue growth in the quarter marked the 10th consecutive quarter of sales growth of over 30%. Still, Mr. Market has lost some of his exuberance for Unity; stocks are down almost 40% from their post-IPO peak in December:

U data by YCharts

Simply put, investors don’t think enough about the potential applications of Unity software and tools. The lines between the different forms of entertainment are blurring, and the next decade could see Unity get much bigger.

MercadoLibre is like investing in Amazon and PayPal ten years ago

Jamal Carnette: Free market (NASDAQ: MELI) is the most compelling growth stock in my entire portfolio. Imagine being able to go back in time to become a Amazon or Pay Pal investor. This is MercadoLibre’s opportunity and the company continues to fly under the radar of Wall Street.

For those unfamiliar with MercadoLibre, it is the largest e-commerce company in Latin America with operations in 18 countries. With 14% of total retail sales, e-commerce still has a long growth track in the developed United States, so you can imagine the opportunity to expand Latin America. In 2020, the company posted 73% revenue growth, so it continues to benefit from increased internet penetration and disposable income growth in the region.

However, MercadoLibre’s most exciting opportunity may not be e-commerce, but rather its fintech payment product Mercado Pago. Like Amazon Web Services, Mercado Pago was originally designed as a “dogfood” support product; here, the limited goal was to facilitate e-commerce transactions on the platform.

However, the product was so successful that it migrated to off-platform uses, such as in grocery stores and gas stations. In the recently released first quarter results, almost 60% of the total payment volume for Mercado Pago was for off-platform applications.

The company has leveraged its success in payment services to offer additional banking services such as its Mercado Credito loans and its Mercado Fondo asset management. Disposable income and Internet penetration will continue in Latin America and Mercado Libre is in a privileged position to benefit from it.