3 Growth Stocks With More Potential Than Any Cryptocurrency

This year, with hopes of lower interest rates, the firstbitcoin (virtual currency)The approval of spot-price exchange traded funds (ETFs) and the large number of purchases made by organizations suggests that the "cryptocurrency days" are over, and that many growth investors are returning to the cryptocurrency market. However, measuring the true value of most cryptocurrencies remains difficult, as their prices are driven more by supply and demand than by the actual underlying business.

Earlier this month, I recommended that investors buy three promising technology stocks.Nvidia),Super Micro Computer(math.) andASML-Instead of taking a full position in cryptocurrencies. Today, I'm adding three more speculative stocks to this list of potential cryptocurrency alternatives:Symbotic (NASDAQ resonance code: SYM),QuantumScape (NYSE:QS)(math.) and IonQ (NYSE: IONQ)The

1. Symbotic

Symbotic is a supplier of warehouse automation robots and software. The company claims that an investment of $50 million in just one of its modules, including robots and software, will yield $250 million in lifetime savings over 25 years.

In June 2022, Symbotic went public with a special purpose acquisition company (SPAC). Its revenues surged by $1,36% in FY2022 (as of September 2022) and $98% in FY2023. However, most of this growth came from partnerships withWal-MartIn the transaction, Walmart commissioned Symbotic to automate all of its regional distribution centers in the U.S. by FY2034. Walmart still owns 11% of Symbotic's shares, representing 88% of its fiscal 2023 revenues.

This concentration of customers is worrying, but it has been linked with theTarget,Albertsons and other large retail customers such as C&S Wholesale. In July of last year, the company also entered into an agreement with another major backerSoft SilverThe name of the artist has been released asGreenBox The new Warehouse-as-a-Service platform.

Analysts expect Symbotic's revenue to grow 48% in fiscal 2024 and 42% in fiscal 2025, and while the company is still losing money, it's expected to be profitable in fiscal 2025 on a GAAP basis. The company's stock price is 16 times this year's sales, which isn't cheap, but it could be a good pure play on the warehouse automation market.

2. Quantum View

QuantumScape develops solid-state batteries that are more stable, faster charging and longer-lasting than traditional lithium-ion batteries. These batteries are ideally suited to the electric vehicle (EV) market, and the company's biggest supporters areMass Motors(VolkswagenThe company's product portfolio includes the following) Like Symbotic, QuantumScape was launched in November 2020 through a license with SPAC. However, unlike Symbotic, QuantumScape has not yet generated any meaningful revenue.

QuantumScape has not commercialized any of its batteries since its launch, but its newest batteries can provide electric vehicles with a range of 400-500 miles and a charge time of less than 15 minutes. The company is also developing a battery that can travel up to 600 miles on a charge in less than 30 minutes. For good measure, most top-tier electric car lithium-ion batteries have a range of about 300 miles and a charge time of 30 minutes. A recent durability test conducted by Mass Motors found that QuantumScape's batteries could power an electric vehicle for over 310,000 miles "without any noticeable loss of range". Most lithium-ion batteries lose about 10% of range after 200,000 miles.

QuantumScape's technology sounds disruptive, but it's hard to value its stock without any revenue. However, if it manages to commercialize its first batteries before like-minded competitors do, then its stock price could skyrocket in the coming years.

3. IonQ

Investors looking for another speculative opportunity should take a look at IonQ, a quantum computing company that became part of SPAC in October 2021.IonQ, which offers quantum computing power in the form of cloud computing services, is attempting to utilize its "sleepy ions" technology to shrink its quantum bit processing unit (QPU) systems from a few feet wide to a few inches wide. feet wide to a few inches wide.

With this miniaturization, the company hopes to make it easier to build large quantum computing systems that process binary "bits" (0s and 1s) simultaneously. This significant leap could support growth in the cloud computing, machine learning and artificial intelligence (AI) markets.

IonQ measures its quantum computing power in algorithmic quantum bits (AQ). It reached AQ 29 in 2023 and AQ 35 earlier this year, with a goal of AQ 64 by 2025 and a longer-term goal of 1,024 by 2028.The company generated just $22 million in revenue in 2023, but it continues to target new government and commercial customers. Analysts expect the company's revenue to grow by 77% in 2024 and 1,10% in 2025, so there's still plenty of upside potential.

IonQ is not yet profitable, and its shares trade at nearly 50 times this year's sales. But if it meets its ambitious miniaturization goals and expands its business, its sales could soar as the nascent quantum computing market expands.

Should you invest $1,000 in Symbotic now?

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Leo Sun has a position in ASML. The Motley Fool has positions in ASML, Bitcoin, INVISTA, Target, Mass Motors, and Wal-Mart. The Motley Fool has a disclosure policy.

3 Growth Stocks With More Potential Than Any Cryptocurrency was originally published by The Motley Fool.