What happened

Shares of Amazon.com, Inc. (NASDAQ: AMZN) climbed higher Monday morning, adding as much as 3.1%. As of market close, the stock was still up 1.2% -- even as each of the major stock indexes slumped.

The catalyst that sent the e-commerce giant higher was reporting the company will hold a second Prime Day sale this year, which will kick off in just weeks.

So what

In a press release that dropped early this morning, the company introduced Amazon's Prime Early Access Sale, a shopping event exclusively for Prime members, which will be held on Oct. 11-12. "The new 48-hour event gives Prime members exclusive early access to holiday deals," the company said in a statement. The sale will have items from popular brands, including Peloton Interactive, Inc. (NASDAQ: PTON) and New Balance, while also offering the lowest prices of the year on a variety of other products.

The sale will be available in 15 countries -- including the U.S. -- "giving members a chance to kick off the holiday shopping season early with hundreds of thousands of deals." As part of the event, Amazon is providing a Top 100 list, which will include "the season's most popular and giftable items."

Furthermore, members will be provided with "early access" to check out the holiday gift guides and early deals beginning today. Initial promotions include a four-month free trial of Amazon Music Unlimited, a free one-year subscription to Just Eat Takeway.com's Grubhub+, or a third-generation Echo Dot for $0.99.

Now what

Since it was introduced in 2015 to celebrate the company's 20th anniversary, Amazon Prime Day has become a customer-favorite event, spawning a multitude of copycats and imitators. While the company keeps details about the financial results of the event quiet, estimates suggest that Prime Day (which is now a two-day event) generated record sales of $12 billion in 2022. It's important to view that in context, however, as it's just a drop in the bucket compared to the $470 billion in revenue Amazon generated last year.

Still, given the growing importance of its annual sale, it's not too surprising that Amazon would double down on the event -- much to the delight of its shareholders.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Why Amazon stock popped on Monday appeared first on The Motley Fool Australia.

Amazon (NASDAQ: AMZN) is the largest e-commerce company in the world with a market value of over $1.3 trillion. Its website generated 2.7 billion hits last month, making it a no-brainer platform for brands that want to elevate their online presence. 

Peloton (NASDAQ: PTON) is set to join that club, announcing this morning that a range of its products and merchandise items are now available on Amazon's U.S. website. It's the latest in a string of drastic moves by the maker of at-home exercise equipment, to arrest rapidly slowing sales and expanding financial losses.

The partnership is a win for Peloton, but it's likely a bigger win for Amazon. Here's why. 

Peloton is retooling for a world beyond pandemic restrictions

Peloton was one of the best-performing companies during the worst of the pandemic. Gyms were closed, workers were attending their jobs remotely, and society was enduring varying degrees of lockdowns. That left few opportunities for people to get their exercise fix, so a range of interactive at-home equipment that brought the workout – and the classes -- into the home was a proverbial home run. 

But as pandemic restrictions eased thanks to widespread vaccinations, Peloton's business quickly deteriorated. The company will report its financial results for the fiscal 2022 full year this week, and it's expecting that revenue will come in at around $3.5 billion, which would be a sizable drop from the $4 billion it generated in fiscal 2021. 

The drop in sales is underscored by a steep drop in engagement, measured by the average number of monthly workouts in the most recent fiscal third quarter which fell 28% year over year. Put simply, gyms are open, people are free, and they're using their Pelotons far less often. 

The company installed a new CEO at the beginning of 2022 and tasked him with righting the ship. So far, sweeping changes have been made which include staff layoffs and broad cost cutting, a trial of a new subscription-based sales model for its equipment, and moving production to external manufacturers. 

Now, for the first time in its history, Peloton will deviate from its direct-to-consumer sales model and offer the Peloton Bike, Peloton Guide, accessories, and apparel outside of its showrooms and its website, on Amazon.com. 

Why this partnership is a big win for Amazon

Earlier this year, Wall Street was abuzz with the news that Amazon was interested in buying Peloton. The move would have been well within Amazon's wheelhouse because it's no stranger to acquisitions -- and Peloton would've been a relatively small one given the company is worth just $4 billion as of this writing, thanks to a 92% drop in its stock price from its all-time high.

It ultimately never happened, but with this new partnership in place, Amazon gets the benefit of selling Peloton's products on its website and earning revenue without the baggage of absorbing a business that has lost a whopping $1.8 billion over the last four quarters. Additionally, Peloton's financial situation is rather grim with just $879 million in cash on hand which is mostly a result of taking on $750 million in debt in May. 

Peloton's Chief Financial Officer has commented that customers initiate 500,000 Peloton product searches every month on Amazon.com, reinforcing the positive impact this deal could have for his company. But it might be just as beneficial for Amazon, because every time a customer can't find what they're looking for on Amazon.com, it increases the likelihood that they will navigate to another website which costs the company more than just that one potential sale. 

When a customer can find what they're looking for, Amazon not only wins the sale, but its artificial intelligence algorithms gain an opportunity to push other products into their view and potentially generate further revenue. It's estimated that these recommendation engines are responsible for 35% of Amazon's online sales, so being able to satisfy that monthly search volume for Peloton products will be a win for Amazon overall. 

Amazon stock is a buy now

Amazon is fresh off a strong, but mixed, second quarter of 2022. It suffered a net loss mainly as a result of its stake in electric vehicle maker Rivian Automotive (NASDAQ: RIVN), because shares in that company have fallen sharply recently. 

But that speaks to Amazon's operational diversity. It offers investors a cross-section of the digital economy and it continues to drive innovation. Having multiple revenue streams insulates the company from external shocks like high inflation, which is currently putting pressure on consumers and, therefore, Amazon's e-commerce segment. But its cloud segment, driven by Amazon Web Services, still managed to grow by 33% year over year during the quarter. 

Additionally, its relatively new advertising segment has delivered $33.9 billion in revenue over the last four quarters and remains an exciting opportunity going forward thanks to the company's valuable media assets, like the rights to the NFL's Thursday Night Football. 

While the Peloton deal is exciting, Amazon is more than just an e-commerce company now and there's no shortage of reasons to own the stock. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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After you've been investing for a while, you begin to see the bright side of share-price declines, because they often present opportunities to buy great companies at discounted prices.

Not every beaten-down stock is a good investment, though. Sometimes, stocks fall for good reason, and buying them after a significant crash is actually a value trap instead of a bargain opportunity.

To avoid catching falling knives, you have to be able to distinguish the quality companies the market is overlooking from the struggling businesses that will likely continue to face challenges. To that end, I never invest in beaten-down companies if I see these two red flags:

1. The company will likely need to raise more money to fund operations.
2. The business is facing secular headwinds.

Let's unpack these two concepts by looking at an example: Peloton Interactive (NASDAQ: PTON).

Avoid zombies like the plague

A zombie company is a business that is on a path toward insolvency unless it manages to raise additional capital, either in the form of an additional equity offering (selling more stock) or by taking on new debt.

These companies are completely dependent on new capital injections to survive, and when interest rates start to rise and the market becomes more averse to risk, they're often forced to take on new debt at very unfavorable interest rates, exacerbating their balance sheets woes.

Peloton has certainly struggled in the last year with demand dropping off a cliff and operating expenses rising.

This led Dave Trainer, the CEO of the research firm New Constructs, to say the following in a recent publication: "Peloton's issues are well telegraphed -- given the stock's decline over the past year -- but investors may not realize that the company only has a few months' worth of cash remaining to fund its operations, which puts the stock in danger of falling to $0 per share."

Trainer's harsh comments are substantiated when you look at the company's shrinking cash position:

Data source: Peloton earnings reports. *Includes cash equivalents and short-term investments.

The interactive fitness specialist is also burning cash at an accelerated rate, going from free-cash-flow positive in 2020 to reporting negative free cash flow for five straight quarters. And the fiscal third quarter saw the biggest outflow yet of $746.7 million.

While Peloton's newly appointed CEO, Barry McCarthy, is hoping to pull off the comeback of the decade, Peloton is a company that may soon be raising capital in an environment where doing so is no longer cheap.

Pass on businesses operating in declining markets

Another major red flag is when a company operates in an industry with major secular headwinds. Peloton had a tremendous first-mover advantage which it cashed in during the pandemic as the connected-fitness industry enjoyed a surge in popularity. But as things have started returning to normal, the at-home fitness sector has experienced a complete reversal with waning demand, which is visible in Peloton's rapidly slowing revenue growth.

Data source: Peloton earnings reports.

And Peloton is not alone. Rival fitness brand Nautilus recently announced a 70% decline in sales in the most recent quarter, while the parent company of NordicTrack scrapped its plans to go public this year among various rounds of layoffs.

The at-home fitness equipment industry may eventually live up to the hype, but for the foreseeable future, it faces an uphill battle as fitness enthusiasts elect to return to gyms and outdoor activities.

Buy the dip, but do it intelligently

I'm a huge proponent of buying beaten-down stocks as long as they're high-quality companies. And to determine that, you need to be on the lookout for red flags.

As you can see with Peloton, the potential need to raise capital to fund operations (especially when interest rates are rising) and major industry headwinds are two indications the stock could be a falling knife instead of a diamond in the rough.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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Stock markets have turned volatile during the Thanksgiving holiday week, and that's created a rift on Wall Street. Although some major benchmarks are holding up well, the Nasdaq Composite (NASDAQINDEX: ^IXIC) has been down fairly sharply for two days in a row. Just before noon ET on Tuesday, the Nasdaq was down more than 1%, bringing its two-day drop to more than 350 points.

Looking more closely within the Nasdaq, many of the up-and-coming high-growth companies that have performed so well over the past couple of years are coming under substantial pressure, with outsized declines that seem out of proportion to any fundamental news. Yet investors in those stocks have seen firsthand just how volatile they can be in producing massive returns, so it's only natural that the inevitable pullbacks these stocks experience will also be gut-wrenching in their magnitude.

Yet it's also human nature to wonder if perhaps the bull market in these high-growth Nasdaq stocks might finally have come to an end.

A tough day for big growth

Many promising companies on the Nasdaq saw their shares hit an air pocket Tuesday. Monday afternoon's earnings results from Zoom Video Communications (NASDAQ: ZM) sent that stock down 18%, falling below the $200 per-share mark for the first time since the first half of 2020. Zoom shares are now off more than 60% from their all-time highs.

Even without news directly affecting companies, many of Zoom's high-growth peers took considerable hits, as well. Among them:

• Cybersecurity-specialist CrowdStrike Holdings (NASDAQ: CRWD) was down more than 5% Tuesday morning, bringing its losses over the past month to nearly 20%.
• Fintech-disruptor Upstart Holdings (NASDAQ: UPST) was down about 8%, sending its stock down 43% since late October.
• Delivery-specialist DoorDash (NYSE: DASH) gave up 9%, giving back all of its gains from the past couple of weeks and then some.
• Interactive fitness company Peloton Interactive (NASDAQ: PTON) fell another 6%, hitting a new 18-month low, down more than 75% from its highest levels less than a year ago.

Even some stocks that have held up well until now found themselves on the list of losers, including cloud-specialist DigitalOcean Holdings (NYSE: DOCN) falling 6% and Datadog (NASDAQ: DDOG) moving lower by 3%.

Why it's premature to call the end of the bull market

The challenge in investing in high-growth stocks is that investors always face difficulties deciding when a bull market has come to an end. When a stock generates 100%, 200%, or even 500% returns in a short period of time, even a pullback of 30%, 40%, or 50% can represent merely a correction in a longer-term upward trajectory. Selling out after those pullbacks because you think greater declines are coming has often proved to be the worst possible move you could make.

Moreover, the current level of volatility in high-growth stocks should not take anyone by surprise. By their nature, high-growth stocks are more susceptible to big market swings because most of their potential is in the future and therefore subject to greater uncertainty. This can lead to painful losses, but it's also the source of the outsized gains seen over the past 18 months for many of these stocks.

Focus on fundamentals

The smart move for long-term investors is to keep your eyes squarely on the business prospects for the companies whose stock you own. Some companies do see fundamental challenges that change the investing proposition and make them less attractive. In that case, considering a sale can be the right move.

More often than not, though, share-price moves are noise with little relation to the fundamental factors that make them promising businesses. The more you can tune out distractions and stay focused on business success, the more likely it is that you'll boost your long-term investment performance. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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But with the dark shadow of inflation looming, which tech businesses are "safe" to return to and which ones should we avoid?

According to Montgomery Investments chief investment officer Roger Montgomery, now is the time to be very selective about where investors park their money.

"Investing in global stocks has been particularly rewarding during 2020 and the early part of 2021. The future, however, could be more challenging and more discernment will be required. This discernment will be no more necessary than required in the tech sector," he said on the company blog.

"The next big rotation could see these over-valued – often profitless – firms dumped in favour of long-duration quality tech businesses."

Short-term volatility is the forecast

Rising inflation changes the whole game, according to Montgomery.

While he believes the world will eventually return to the pre-COVID low inflation environment, the immediate future is not so rosy for tech.

"For the next few months there is every risk that both the leading tech companies and the profitless prosperity companies are put under some pressure," he said.

"Any forthcoming volatility may be greater for the super long-duration tech set where price and sales multiples are off the Richter scale."

Taking advantage of this volatility involves putting money into the right tech shares to reduce downside risk.

Tech giants' numbers are far superior to the speculators

Montgomery thought the COVID winners still have nonsensically high valuations.

"EV [enterprise value]-to-EBITDA sits at about 2500 times for Roku Inc (NASDAQ: ROKU) and 147 times [for] Zoom Video Communications Inc (NASDAQ: ZM)," he said.

"Meanwhile Roku, Docusign Inc (NASDAQ: DOCU) and Slack Technologies Inc (NYSE: WORK) generate negative returns-on-equity."

This is why the safe bet in a rising inflation world are the well-established giants.

"Contrast these multiples to the tech giants whose combination of growth and profitability could not have been imagined by capitalism even a decade ago," said Montgomery.

"Facebook's ROE sits at 25 per cent, Apple's is 82 per cent and Microsoft 43 per cent."

He added that the profitable mega-caps like that trio and Amazon.com Inc (NASDAQ: AMZN) and Alphabet Inc (NASDAQ: GOOGL) (NASDAQ: GOOG) have "incredible economics" and "scarcity" on their side.

The rotation away from momentum stocks has already well begun, even though these companies are merely seeing a slowdown in revenue growth.

"Witness, for example, the up-to-50% slides in Peloton Interactive Inc (NASDAQ: PTON) and Afterpay Ltd (ASX: APT), a decline of a third for Docusign and Zoom, along with slides in Appen Ltd (ASX: APX) (down 70%), WiseTech Global Ltd (ASC: WTC) and Xero Limited (ASX: XRO)," Montgomery said.

"We currently believe it is wise to tilt towards quality and away from momentum in the tech names."

Montgomery's worst fear is that inflation pokes up, and then the central banks allow it to go out of control.

"Recently, a well-connected friend told me Australia's [Reserve] Bank believes there's a 25% chance inflation could get away from them," he said.

"The idea that central banks could be 'behind-the-curve' is one markets are most nervous about."

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The Nasdaq Composite (INDEX: .IXIC) has led the broader stock market higher for nearly a full year since the coronavirus bear market. On Wednesday, the Nasdaq led the broader market lower, falling almost 1% as of 1:30 p.m. EST even as other stock benchmarks were mixed.

Investors have seen extraordinarily good returns from individual Nasdaq stocks. Two of the biggest standouts have been electric vehicle giant Tesla Inc (NASDAQ: TSLA) and connected fitness equipment manufacturer Peloton Interactive Inc (NASDAQ: PTON), but today, the two high-flying growth stocks were headed lower. Below, we'll take a closer look at what was sending Tesla and Peloton into the red on Wednesday.

Driving lower

Shares of Tesla were down about 2% on Wednesday afternoon, but that reflected a partial recovery from its worst levels of the day. Earlier in the morning, Tesla has been off more than 4% and falling to prices it hadn't seen since the beginning of January.

The move came despite several recent pieces of positive news. Tesla is expected to open a manufacturing facility in India, according to a Tuesday Reuters report, which will open up a huge potential market for the electric-car maker. In addition, ARK Invest CEO and Chief Investment Officer Cathie Wood is continuing to add to positions in her lineup of actively managed exchange-traded funds (ETFs), speculating that Tesla could add a ride-hailing service to its list of aspirations.

Meanwhile, another Elon Musk-led company grabbed headlines on Wednesday. Privately held SpaceX reportedly completed a funding round at just under $420 per share, raising $850 million and establishing a value of $72 billion on the space exploration company. Although some have argued that Tesla could eventually join forces with other Musk-led businesses, others fear that the Tesla CEO could lose focus if he divides his time too much among his various interests.

Even a more extensive decline would still leave Tesla shareholders with plenty of gains over the past year. Nevertheless, with such staunch supporters for the stock, bargain hunters shouldn't count on being able to pick up Tesla stock on the cheap.

Losing the race

Elsewhere, shares of Peloton Interactive were down more than 7%. The move came amid a broader move lower for stay-at-home stocks, driven in part by falling COVID-19 case counts and the possibility of a return to more normal conditions in the coming year.

Yet Wall Street analysts still have hopes that Peloton will remain a successful stock. Analysts at Argus kept their buy recommendation on Peloton, boosting their share price by $40 per share to a new level of $180. As Argus sees it, the stationary bike maker is still seeing unprecedented demand, and even as the vaccine rollout progresses, gyms could still be among the last places that open up fully and return to pre-pandemic conditions.

Today, though, investors seem to be thinking twice about sky-high valuations. Even Argus expects that Peloton will make just 90 cents per share in fiscal 2022. That puts the stock at 150 times forward earnings even after today's drop.

Peloton has had the ride of a lifetime, but some investors want to see what happens down the road. If the fitness equipment company can fulfil orders more effectively and keep capturing rising demand, then its stock could bounce back from Wednesday's setback.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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Amazon.com Inc (NASDAQ: AMZN) and Peloton Interactive Inc (NASDAQ: PTON) are two of the hottest stocks on Wall Street. Both of them were hot even before the pandemic, but while COVID-19 has harmed many businesses, it's been a boon to both of these companies. 

Amazon is the standard favorite, and Peloton is the new stock on the block. Let's take a look at what they have going for them and which one is better for your stock portfolio.

High-speed growth

Many investors look for high-growth companies to fuel their portfolios. High growth comes with risk, but it also provides the opportunity for high gains. Shareholders who believed in Amazon from the time it was a humble online bookseller have seen their stock skyrocket. Those who are sticking with Peloton are looking for the same kind of returns. 

Amazon became the go-to retail experience during the pandemic as Americans stayed home and accelerated their adoption of online shopping. The e-commerce giant hired hundreds of thousands of new employees to fill soaring demand, and even had to temporarily pause deliveries of nonessentials to focus on getting customers the goods they really needed. 

Sales surged commensurately, increasing 40% in the second quarter ended 30 June and 37% in the third quarter ended 30 September. 

Peloton has seen even more extreme growth during the pandemic. In the fourth quarter ended 30 June, revenue increased 172%, connected fitness subscribers grew 113%, and paid digital subscriptions were up 210%. Clearly, these are the beginning stages of a very popular brand. Some gyms were closed during this time and others continue to stay shuttered, and fitness enthusiasts had to find other means to achieve their fitness goals. This definitely helped increase adoption of Peloton's products, since growth was beginning to slow down before COVID-19.

Keeping it up

Amazon still has tremendous prospects. It's expecting sales to increase between 28% and 38% in the fourth quarter, which includes the high-volume holiday season. It's expanded its business with Amazon Web Services, which provides cloud computing solutions and has picked up many large clients such as Global Payments and Moderna.

It has also made headway in its efforts to get into storefronts, an important piece of omnichannel shopping that's become the new wave in digital. It pioneered the Amazon Go cashierless technology and has opened 26 Go stores in four states. It also launched four Fresh stores in California, with another on the way in Illinois. These combine in-store grocery shopping with almost every iteration of digital options, including the Amazon Dash cart, where customers can place their goods and skip the checkout lane. 

Peloton also has a lot of future potential. It recently lowered the price of its standard bike and introduced a newer, premium model. It's also launching a line of connected fitness treadmills with a range of prices. Its exercise class subscription model ensures there's an inexpensive way to connect with the company and keeps the brand in the public eye. 

One could argue that once the pandemic ends, the kind of growth Peloton is seeing will subside. While that's probably true to some degree, Peloton customers are happy customers, and getting them to take the first step is the beginning of keeping them on board. The company has high retention rates, at least in part because customers who buy the expensive equipment want to make the most of their purchase.

Amazon stock is up 71% year to date and is trading at about 90 times trailing 12-month earnings. That seems high, but historically Amazon has traded for a much higher valuation.

Peloton stock is up 300% year to date and is trading at a staggering 408 times trailing 12-month earnings. 

I think that they're both great companies, and investors won't lose out buying shares in either one. But if I had to choose one, I'd go with Amazon. It's more established and therefore less risky. It's also trading pretty cheaply, and has many years of growth ahead, making this an excellent time to buy shares.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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2020 will be remembered as a volatile year in the stock market. After crashing in March, the broader market has seen high highs and low lows, and the S&P 500 Index (SP: .INX) is up 10% year to date through Friday's close.

Stay-at-home stocks have scored most of the high gains so far this year, and if you had invested in Etsy Inc (NASDAQ: ETSY), Square Inc (NYSE: SQ), and Peloton Interactive Inc (NASDAQ: PTON) a year ago, you would have more than doubled your money. Are further gains in store?

Exclusive products drive this e-commerce winner

Etsy's success as an online marketplace for handmade and one-of-a-kind items hasn't gone unnoticed -- certainly not by Amazon com Inc (NASDAQ: AMZN), which tried to compete with its own Handmade service. But with great management, an improved platform, and a long lead, Etsy keeps growing.

Etsy was well positioned for the pandemic, not only as a fully digital business, but with a community of makers ready to create custom masks and other pandemic paraphernalia. CEO Josh Silverman coordinated a response that spread demand among suppliers to meet increased interest in masks, resulting in millions of new customers, triple-digit sales growth for the past two quarters, and soaring earnings.

And it's far from over. Active customers are also on the increase as Etsy moves from a niche category into the mainstream and challenges the biggest names in e-commerce. The company acquired Reverb, a marketplace for musical instruments, moving into complementary businesses and adding new ways to plump the top line.

Etsy's stock has gained almost 240% over the past 12 months (based on Friday's closing price), but it fell after a great earnings report that has investors wondering about the future, and fell again on Pfizer Inc's (NYSE: PFE) promising coronavirus vaccine news. While some forward progress was definitely built into its price-to-earnings (P/E) ratio, its recent dip brings it down to a relatively reasonable P/E of 75, making now a great time to buy in.

Fueling new ways to pay

Square offers payment solutions for small and medium businesses as well as a peer-to-peer payments service called Cash App. But you probably already know that, since Cash App is the most popular peer-to-peer payments service in Alphabet Inc's (NASDAQ: GOOGL) (NASDAQ: GOOG) Google Play store.

COVID-19 wasn't kind to the company; its main business, small business payment processing, and other small business services suffered with business closures. But Cash App business, specifically bitcoin, kept revenue afloat. And now that lockdowns have for the most part been lifted, growth has resumed across the board, with a 140% sales increase and a return to positive earnings.

Square, with $3 billion in revenue, is nowhere near as big as rival PayPal Holdings Inc (NASDAQ: PYPL), which has close to $5.5 billion in revenue, and PayPal's Venmo is the most popular peer-to-peer payments service in the Apple Inc (NASDAQ: AAPL) store. But Square is growing much faster, with 140% revenue growth. PayPal's maturity means its growth, while consistent, will be less eye-popping.

Square's stock has gained about 190% over the past 12 months, but investors can expect to see a lot more upside.

Pedaling toward success

Going public in September 2019, just a few months before the pandemic struck, Peloton was just in time for a stay-at-home fitness movement that lifted its sales and catapulted it into hot stock territory. 

In the third quarter, even after fitness-minded consumers were out and about again, Peloton showed its staying power with a 92% retention rate, 137% increase in connected fitness subscriptions, 382% increase in digital subscriptions, and 232% increase in revenue.

In fact, it's growing so fast that it can't keep up with demand, and there's a longer than one-month waiting list to purchase its premium video-connected bikes. 

Peloton has had the biggest gains of the three companies listed here, more than 280% over the past 12 months, even with a recent dip as investors cash out of stay-at-home stocks. I would say it's also the riskiest of the three, since premium bikes have a lower ceiling than payments and trinkets. But the company is making strategic moves to keep growing, such as launching new products and connecting with celebrities, and it still has years of high growth ahead.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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