Amazon.com (AMZN) has been one of the best investments in the stock market in the last decade, returning 1,500% in the past 10 years alone. It’s always difficult to see success like that ahead of time, but LendingClub (LC), 58.com (WUBA) and Splunk (SPLK) are all strong candidates to follow in AMZN’s footsteps.
LendingClub (LC)
AMZN shares several common themes with each of these three stocks. AMZN became such a hit because it was the early market leader in a massive and wide-open field of e-commerce. LC has a similar leadership position in the booming industry of alternative finance.
LendingClub is trying to use technology and the internet to disrupt the banking industry the same way that AMZN disrupted the retail business. In recent years, LC’s growth has been extremely impressive. According to Finviz, LC’s sales have grown at an average annual rate of 119.7% over the past five years. In addition, the company has a projected annual earnings growth of 74.1% over the next five years.
LC is also showing no signs of slowing down anytime soon. Last quarter, LC reported a year-over-year revenue gain above 90%.
Despite the massive revenue gains, Morgan Stanley reports that online lenders like LC have only captured about 3.3% of the total small business lending market so far and could account for about 20% of the total loan market by 2020. There is plenty of room for growth ahead for LC, and the company’s relatively small market share and only $2.9 billion market cap means that the stock’s share price could see some major upside if the business stays on track over the next 10 years.
58.com (WUBA)
Despite concerns over an economic slowdown in China, Boston Consulting Group (BCG) still projects…
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