Despite recent volatility, investors looking for disruptors and innovators really don’t have a shortage to choose from. Indeed, lower prices means better entry points for long-term growth investors. Accordingly, one might argue that now is the time to start considering disruptive companies in this market environment.
For those taking a more aggressive approach, here are three disruptors I’ve got my eye on right now.
Top disruptors to buy: Meta Platforms
When picking among the various disruptors in the market, it’s important to consider a given company’s future outlook. In this regard, Meta Platforms (NASDAQ:META), formerly known as Facebook, is a tech stock I think is worth considering.
One of the most valuable tech companies in the world, Meta has seen its valuation decline substantially this year. While this decline has come alongside the broader tech sector, Meta’s focus on the metaverse has become a sore point for investors.
That’s partly because the company’s metaverse division is costing shareholders tens of billions of dollars to build out. With a negative return on equity right now, there’s little to like about this division’s impact on the company’s overall business.
That said, I think for those taking a long-term view of Meta’s ability to dominate this market, this investment could be one that could pay off. A speculative bet right now, META stock may look like a very smart bet in a few years’ time.
Constellation Software (TSX:CSU) is another disruptor investors may want to consider, particularly those looking for Canada-based innovation. Constellation’s business model isn’t really that game changing. Indeed, the company simply acquires and holds a range of software companies for the long term. That said, it’s the underlying disruption of Constellation’s portfolio that I think warrants a look.
Since its inception, it has acquired approximately 500 companies. Over time, the company’s portfolio has seen continued growth, with top-line revenues growing 24% and cash flow from operations rising 8%, as per the company’s recent earnings release.
Over time, it’s expected the company’s Allscripts’s acquisition could boost growth in the healthcare space. Currently, Constellation has a strong presence in the health care, utilities, public and private sectors business lines. Each of these business lines are ones I see Constellation providing added value and disruption.
Nio (NYSE:NIO) is a China-based electric vehicle (EV) manufacturer that has also been hit hard of late. Despite this company’s rather poor performance, Nio happens to be one of the fastest-growing EV makers in the fastest-growing market globally for electric vehicles.
For those bullish on EV technology broadly, I think Nio has the potential to outperform incumbents over time. Much of this has to do with the company’s unique tech, and specifically Nio’s battery-swapping stations for its cars. These battery-swapping stations serve as an alternative to the existing infrastructure out there and, if proven, could become the standard upon which the EV sector moves forward.
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Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Fool contributor Chris MacDonald has positions in Meta Platforms, Inc. The Motley Fool recommends Constellation Software, Meta Platforms, Inc., and Nio Inc. The Motley Fool has a disclosure policy.