4 Growth Stock That Fares Better Than Bitcoin

Love it or hate it, bitcoin (CCC:BTC) here to stay. The best known cryptocurrency has been red hot in recent months. Many Wall Street institutional investors and well-respected veterans who usually track growth stocks are taking money in the digital currency set up in 2008.

Some highly respected names even claim that bitcoin could eventually replace gold as a safe haven for investors.

The frenzy surrounding bitcoin raised its price sharply. Since March 2020, the price of bitcoin has risen 625%, from $ 5,024 an ounce to $ 36,433 recently. At one point in recent weeks, single bitcoin was worth $ 40,675.80, its highest level ever.

And yet there are some growth stocks that have generated better returns than bitcoin over the past year, which could continue to outperform cryptocurrency throughout 2021. Here are four growth stocks that are better than bitcoin.

  • I do (NYSE:NIO)
  • Blockchain riot (NASDAQ:RIOT)
  • PayPal (NASDAQ:PYPL)
  • Gamestop (NYSE:GME)

Growth Stocks Better Than Bitcoin: Nio (NIO)

Nio Sign (NIO) outside the company's facilities in Shanghai, China.

Source: Andy Feng / Shutterstock.com

Is Nio the next Tesla? Many investors are betting that the Chinese company can challenge Elon Musk for dominance in the fast-growing electric car market. NIO stock has risen a staggering 1,584% in the last 12 months. That earnings dwarfs the 625% gained on bitcoin since January 2020.

This time last year, NIO stock was trading at $ 3.72 a share. It’s now at $ 62.32, and climbing. Since the end of December, the stock jumped 41%. Investors continue to support the Chinese electric vehicle manufacturer and its growth potential. That potential was boosted recently after the company unveiled its new ET7 electric sedan capable of traveling 600 miles on a single battery charge, outperforming Tesla’s current 450-mile battery range.

As Nio ramps up delivering goods to his vehicles, investors seem to get even more excited about the stock. In October 2020, Nio delivered 5,055 vehicles, up 100% from October 2019. Bank of America predicts that Nio will turn a profit by 2023.

Guess anyone where the stock is going, but Wall Street remains bullish. Analysts have a median price target on NIO stock of $ 374.07 a share, with a high estimate of $ 645.75 and a low estimate of 98.10. Even the low estimate on the stock represents a 57% increase from the current price per share.

Riot riot (RIOT)

a futuristic image of rain with the words block chain floating above it.  represent blockchain stocks

Source: Shutterstock

Investors looking for exposure to bitcoin who do not want to shell out more than $ 35,000 or stomach the volatility of the cryptocurrency should consider taking a position in Riot Blockchain.

The company, which is based in Colorado, is a digital currency company that purchases cryptocurrency and blockchain technology companies. Blockchain is the database on which bitcoin and other cryptocurrencies are created.

RIOT’s stock climbed along with Bitcoin over the past year, beating the cryptocurrency in terms of returns for investors. In January 2020, Riot Blockchain stock was worth $ 1.36 per share. He was feeding on the bottom among penny stocks. Since then, the stock appreciated 1,655%. Amazing! And yet, despite that massive growth, the stock today is trading below $ 25 a share, making it quite affordable for investors.

And the stock is likely to continue moving higher as bitcoin and other cryptocurrencies gain wider acceptance among retail and institutional investors.

PayPal (PYPL)

Online payments company PayPal offers investors another way to benefit from the rapid growth of bitcoin. And it is even safer and less volatile than the aforementioned RIOT stock.

PayPal now enables consumers in the US to buy, sell and hold various cryptocurrencies on its website. People can also view and track cryptocurrencies using the PayPal app. Moreover, PayPal allows its more than 25 million merchants to use cryptocurrency as a legitimate form of digital currency. The Palo Alto, California-based company co-founded by Elon Musk is doing just as much as any organization to help bring cryptocurrencies like bitcoin into the mainstream.

PYPL stock was doing well before it announced it was moving into cryptocurrencies last fall. But since then, the stock soared higher, up 37% since early November at $ 244.90 a share. Since global stock markets hit last March, PayPal’s stock has risen just under 200%.

And while excitement over the availability of bitcoin and other cryptocurrencies has put a strain on the stock, the shares are also benefiting from the increased use of online payments during pandemic lock collapses worldwide. PayPal is on many analysts’ lists of stocks to buy in 2021.

GameStop (GME)

Retailers walk past GameStop (GME) store in New York City, New York.

Source: Northfoto / Shutterstock.com

For massive growth that has outperformed bitcoin in the past year, look to video game retailer GameStop. The Dallas, Texas-based company’s stock increased 1,020% since March 2020 when it was then trading at $ 2.80 a share. Today, GME stock is changing hands at $ 31.40 a share and continues to challenge the expectations of investors large and small. On January 13, the company’s share price jumped 57% in a single trading session after it announced new board members and reported same-store holiday sales rose 4.8% and digital sales increased 309%.

The traditional brick-and-mortar retailer is increasingly focusing its efforts on selling online and digital video games. The company also attracted a number of executive board members and gained interest from some well-known investors. Chewy (NYSE:ALL) co-founder Ryan Cohen took a 13% stake in GME stock last year and Michael Burry of the “Big Short” fame is also a vocal shareholder.

GameStop signed an agreement with Microsoft (NASDAQ:MSFT) which will see the retailer receive a share of digital sales of games downloads and subscription plans on any Xbox consoles sold in its chain of stores.

GameStop seems to be heading in the right direction and continued growth could follow.

At the date of publication, Joel Baglole had long held positions at NIO, RIOT and MSFT.