It’s been a strange two weeks for some companies. Facebook changed its name to dead (NASDAQ:FB), While Square (New York Stock Exchange:mint) changed its name to Block. On a separate albeit related note, Square CEO Jack Dorsey has also announced that he is stepping down as CEO of Square Inc. Twitter (New York Stock Exchange:TWTR).
When a stock is mired in underperformance, a change at the top often leads to gains in the stock price. It did in this case, but the recovery was short-lived after Twitter announced CTO Parag Agrawal as its new CEO.
It was a promotion inside the company and it was clear that the market wanted someone on the outside to turn things around. However, it inspired us to look at a few of our founding CEO stocks.
However, the market Not He responded with a crowd if these founders abdicated. They are:
- nvidia (NASDAQ:NVDA)
- trade office (NASDAQ:TTD)
- general (NASDAQ:general)
Now, let’s dive in and take a closer look at them now in order of market value.
Founding CEO shares to buy: Nvidia (NVDA)
Nvidia has always been a favorite with investors, but it took a lot of years to pay off for its CEO Jensen Huang. He founded the company in 1993 with two other computer scientists.
Nearly three decades later, Nvidia has become one of the largest companies in the world, with a market capitalization of just over $750 billion. I’ve always been optimistic about this stock, but can’t say I’ve been behind it for 28 years!
It’s easy to say now, but earlier this year I made the case for setting a company’s trillion-dollar market cap. Back in March 2020, it proved to be a ‘stealing’ of less than $200. That’s true so far, but it’s written on a split basis, so it steals less than $50.
It’s hard to believe we have this opportunity in 2020. In any case, the long-term looks incredibly bright for this business.
Overall, the company has consistently delivered positive cadences for both earnings and revenue. It enjoys strong profitability and we have noted more than once the huge increase in bottom-line and higher expectations.
despite this, Analysts still expect revenue growth of 60% This year, it’s followed by roughly 20% growth next year and 16.5% growth in 2023. For all we know, these estimates are conservative too.
Nvidia has its hands on every meaningful growth opportunity going forward, including cloud computing, data centers, graphics, and computing power. In addition, the company is also involved in a few other hot sectors such as artificial intelligence, machine learning, autonomous driving, and everyone’s favorite new buzzword: The metaverse.
Founding CEO shares to buy: The Trade Desk (TTD)
After that, we have the trade office. While stocks have fallen off their recent highs, this was one of the best performing stocks this year. While most other growth stocks were under pressure, this one remained strong.
Jeff Green is the co-founder, chairman and CEO and has gone on to do amazing work for the company.
While the alphabet (NASDAQ:GoogleNasdaq:Google) and Facebook are banned in China, and the Trade Bureau has found a way to operate peacefully here. It leverages artificial intelligence to drive robust growth and pPerhaps most impressively, the company is also profitable.
Analysts expect revenue growth of 42% this year, 30% growth in 2022, and 27% in 2023. All while increasing its bottom line.
What is the downside of the stock? Well, it’s not cheap. The shares are trading at 36 times earnings this year and 28 times estimates for 2022. Even in a bull market, it’s expensive, but that’s it.
Sometimes, high-quality companies trade at a premium price and do not give up that premium easily. Do you need another example? Just look at Shopify (New York Stock Exchange:a store), which traded at 37 times estimated revenue for the year but had a market capitalization of $183 billion and is up 2,600% in the past five years.
Founding CEO Stock to Buy: Roku (ROKU)
Last but not least, we have Roku. The company is at the heart of a massive trend: video streaming.
Whether it’s on YouTube or through one of the many new streaming platforms available now, almost all of this can be done through Roku’s easy-to-use platform.
When Chairman and CEO Anthony Wood founded the company in 2002, the world was much different. In addition, the device was the main product. Now Roku doesn’t look to hardware for its results.
Instead, the company has partnered with several TV manufacturers to build Roku-based smart TVs, while selling streaming devices in an effort to increase revenue for its platform.
Although the stock price is down nearly 60% from its all-time high to a recent low, there are many positives going on with Roku.
First, growth remains strong as broadcast television remains a topic of secular growth. Second, the company recently reached a new multi-year deal with YouTube, which was one day away from expiring. Third, the company’s total profit, free cash flow, and revenue continue to rise on the back of the platform’s strong growth.
Created in the last quarter 18 billion hours of broadcast, up 21% YoY (YoY). Active accounts are also up, too, up 23% year over year to 56.4 million customers. It’s safe to say, regardless of the stock price, that Roku is doing just fine.
In publication history, Brett Kenwell has long held a position on NVDA, TTD, and ROKU. The opinions expressed in this article are those of the author, and are subject to InvestorPlace.com Posting Guidelines.
Brett Kenwell is director and author of Future Blue Chips And on Twitter Tweet embed.