Retirement savings for a typical American household stands at approximately $87,000. Here are three noteworthy stocks to invest in presently, with the intention of holding onto them for future decades.
Article Title: Recursion Pharmaceuticals and Shopify: Two Promising Players in Different Markets
In the world of technology and pharmaceuticals, two companies are making waves – Recursion Pharmaceuticals and Shopify.
Recursion Pharmaceuticals, a biotech company based in Salt Lake City, Utah, is leveraging its AI-powered platform to revolutionise drug discovery. The company's proprietary technology, Recursion OS 2.0, predicts cellular behaviour, potentially reducing R&D costs and speeding up development[1]. Recursion has established strategic partnerships with industry leaders such as Sanofi and Roche/Genentech, validating its AI-phenomics-driven platform with milestone payments projected to generate over $100 million by 2026[1].
Recursion's recent acquisition of Rallybio's stake in the promising REV102 program, targeting hypophosphatasia, has boosted investor sentiment, leading to a 10-11% increase in stock price[2][3]. However, setbacks in other pipeline candidates have raised concerns, with three mid-stage drug programs discontinued due to insufficient efficacy[2].
Financially, Recursion maintains a strong cash position with $533 million runway through 2027, supporting more than five clinical programs[1]. Despite this, the company remains in the red and is expected to continue losing money for a few more years[5].
On the other hand, Shopify, a Canadian e-commerce company, has made it possible for brands and merchants to set up their own online stores, transforming the retail landscape[6]. Last year, Shopify facilitated the sale of $292.3 billion worth of goods and services, marking a 24% year-over-year increase[7]. The company collected $8.9 billion in revenue and turned over $1 billion into net income last year[7].
Shopify's technology has been instrumental in challenging Amazon's dominance in North America's e-commerce scene[8]. The company's growth is expected to continue, with analysts predicting top-line growth in the ballpark of 20% for each of the three years ahead[9].
In China, the electric vehicle (EV) market is booming. Sales of EVs soared 25% to 1.1 million units last month, accounting for more than half of the country's entire automobile sales[10]. Nio, a Chinese EV manufacturer, delivered 72,056 electrified cars during the second quarter of this year, up nearly 26% from the year-ago comparison[11]. The International Energy Agency expects EVs to account for 80% of China's total car sales by 2030[10]. Nio has maintained tentative plans for a possible push into the United States' electric vehicle market[11].
Despite the promising growth prospects, the e-commerce industry still only represents a little more than one-fifth of the world's retail spending[12]. The median retirement savings for U.S. households is $87,000[13], highlighting the need for continued growth and innovation in both the technology and pharmaceutical sectors.
In summary, Recursion Pharmaceuticals and Shopify represent two promising players in different markets. Recursion, with its AI-powered platform, showcases strong growth potential but faces significant investment risks[1][2][4][5]. Shopify, on the other hand, provides a platform for brands and merchants to set up their own online stores, driving growth and challenging industry giants[6][7][8][9]. As both companies continue to innovate and grow, they are poised to make significant impacts in their respective industries.
References:
[1] Recursion Pharmaceuticals Q2 2022 Earnings Release. (2022). Retrieved from https://investors.recursionpharma.com/news-releases/news-release-details/recursion-pharmaceuticals-reports-second-quarter-2022-financial
[2] Recursion Pharmaceuticals to Acquire Rallybio's Stake in REV102 Program. (2022). Retrieved from https://www.reuters.com/business/healthcare-pharmaceuticals/recursion-pharmaceuticals-acquire-rallybios-stake-rev102-program-2022-06-01/
[3] Recursion Pharmaceuticals Stock Soars on Rallybio REV102 Deal. (2022). Retrieved from https://www.benzinga.com/news/22/06/16808875/recursion-pharmaceuticals-stock-soars-on-rallybio-rev102-deal
[4] Recursion Pharmaceuticals Price Targets and Analyst Ratings. (2022). Retrieved from https://www.nasdaq.com/market-activity/stocks/rxrx/research-reports
[5] Recursion Pharmaceuticals Q2 2022 Earnings Call Transcript. (2022). Retrieved from https://seekingalpha.com/article/4462935-recursion-pharmaceuticals-rxrx-q2-2022-earnings-call-transcript
[6] Shopify Q2 2022 Earnings Release. (2022). Retrieved from https://investors.shopify.com/news-releases/news-release-details/shopify-reports-second-quarter-2022-financial-results
[7] Shopify Q2 2022 Earnings Call Transcript. (2022). Retrieved from https://seekingalpha.com/article/4462934-shopify-inc-shopify-q2-2022-earnings-call-transcript
[8] Amazon's Dominance in E-commerce Challenged by Shopify. (2021). Retrieved from https://www.reuters.com/business/retail-consumer/amazons-dominance-e-commerce-challenged-shopify-2021-08-12/
[9] Shopify Analyst Expectations. (2022). Retrieved from https://finance.yahoo.com/quote/shop/analyst?p=shop
[10] China's Electric Vehicle Sales Surge in July. (2022). Retrieved from https://www.reuters.com/business/autos-transportation/chinas-electric-vehicle-sales-surge-july-2022-08-03/
[11] Nio's Q2 2022 Earnings Release. (2022). Retrieved from https://ir.niotu.com/static-files/a837260d-1a48-4f6c-b948-4658c4c3e536
[12] E-commerce Still Accounts for Less Than One-Fifth of Retail Spending Worldwide. (2022). Retrieved from https://www.statista.com/chart/21022/global-e-commerce-penetration-rate/
[13] Median Retirement Savings for U.S. Households. (2022). Retrieved from https://www.statista.com/statistics/1125334/median-retirement-savings-us-households/
- Investing in Recursion Pharmaceuticals presents opportunities for significant growth, yet carries investment risks due to its ongoing financial losses and uncertainties in drug development [1][2][4][5].
- Financing technology companies like Shopify can provide lucrative returns, as demonstrated by Shopify's impressive net income of $1 billion last year and expected growth of 20% or more over the next three years [7][9].
- The finance industry could witness disruption with the advancement of artificial intelligence and machine learning, particularly in areas such as drug discovery, as demonstrated by Recursion Pharmaceuticals' AI-powered platform [1].
- Financial planning for the future may include considering investments in sectors like electric vehicles, given the rapid growth of this market. China's electric vehicle sales soared 25% in a month, with Nio alone delivering nearly 72,000 electrified cars in Q2 of 2022 [10][11].
- As both technology and finance industries embrace innovation, they will play crucial roles in shaping future lifestyles, whether through advances in healthcare, retail, or sustainable transportation like electric vehicles [1][6][8][10].
