3 tech stocks that have more potential than any cryptocurrency

History shows that stocks perform better than any other asset class over time. While gold, oil, and housing may beat the market in the short term, stocks have beaten them all pretty well over the past century.

That’s also true of cryptocurrencies that have eaten their dust in the last few years when everyone started buying them. But in the year Although the S&P 500 has lost more than 13% in 2022, Crypto 10, an index of the top 10 cryptocurrencies, is down more than 57% this year. That reinforces the idea that stocks remain your best bet in the long run.

With tech stocks the engine that drove the market higher during a nearly 15-year bull run, this year’s collapse in the sector has put previously unattainable high-flyers in the hands of investors today. The following three tech stocks have more potential than any of the biggest cryptocurrencies today.

Airbnb

Short term vacation rental Airbnb (Father B -3.60%) It has an advantage over the hotel and motel industry, as it has less overhead or capital costs to incur the debt it needs to service. It ended the second quarter with $1.9 billion in long-term liabilities, as well as $6 billion in cash and cash equivalents with another $2.3 billion in investments. It’s basically a low-income, cash-rich business, and it’s growing fast.

Revenue grew 58% to $2.1 billion last quarter as total booking value and nights and experiences booked each increased 25% or more. It turned a $21 million loss a year ago into a $373 million profit this year, generating $795 million in free cash flow.

Even so, Airbnb stock has weakened, losing nearly half of its value from its 52-week high. Downside risks from rising inflation, rising energy prices and rising interest rates continue to weigh on stock performance. And the economic situation in the U.S. overseas, with war, rising energy prices, and the prospect of food shortages is dire.

Airbnb’s business model, however, is proving very resilient, and its depressed price represents a great opportunity to tap into hospitality stocks with excellent long-term potential.

Nivea

Chip maker Nivea (NVDA -9.23%) They were sliding long before they flipped. Ethereum (Crypto: ETH) From a proof of work system to a proof of stake system where stakeholders verify transactions, but the “consolidation” is having an impact.

This is because Nvidia chips are now used more often for verification, which is why the gaming chip business is so strong. Those gaming chips aren’t primarily used for video games, but rather for validating Ethereum transactions — and now, with the change, they no longer have such a need.

Nvidia’s latest Q2 preview shows the results; Revenue is expected to be $6.7 billion, rather than the previously expected $8.1 billion, as gaming revenue of $2 billion is down 33 percent from last year and down 44 percent from the previous quarter.

Fortunately for investors, Nvidia’s data center business outperformed gaming as its main revenue generator, and sales there of $3.8 billion are expected to be 61% higher than a year ago (albeit up 1% quarter-to-quarter).

There may be some pressure on Nvidia’s stock due to the slowdown in the gaming business, but the high-performance chipmaker still has its finger on the pulse of the future of GPUs. With shares down 50% from their highs and 44% year-to-date, that’s a big deal for this long-term winner.

Shopify

E-commerce platform provider Shopify (Shop -5.59%) It was completely destroyed, losing more than 80% of its value, because the growth slowed down, since the first days of the epidemic.

Shopify’s core business is primarily facilitating online sales channels for small and medium-sized businesses, so it is now a retail-led company, so it is vulnerable to downwinds. Rising inflation will limit consumer spending and new business ventures and expansion.

The problem is that the market is repricing based on those outbreaks, and now the business is returning to its pre-pandemic existence, which is good for an investor with enough time to invest. Such meteoric growth spurts are not sustainable, and Shofie has admittedly made some mistakes of his own — but he’s now course-correcting and better positioned for long-term growth.

Merchant Cash Management Account, a small business loan boutique, a fully hosted enterprise e-commerce platform for fast-growing brands, and the Shopify Fulfillment Network launched merchants’ shipping logistics problems in-house. It also offers intangible tokens, or NFTs, to help businesses and brands better connect with customers.

With a balance sheet that remains in good shape and expects continued future growth, Shopify is a stock that should easily outperform any cryptocurrency in the coming years.