Stocks with incredible runs.
While that’s a fact of life as old as “buy low, sell high,” new forces shape the market in the 21st century like never before. Here we look at 8 stocks that have had some incredible runs in the 21st century. Whether they’ve lasted, retreated and or written their last chapter as public investments, all have the displayed moneymaking muscle worthy of a comic book plot straight out of Planet Profit.
Facebook (ticker: FB)
Things didn’t start rosy after the social media titan went public in May 2012; it dropped by a third in 14 months. But over the last three years, it’s leaped more than 300 percent, and now trades at about $117 a share. “Facebook’s massive user base of more than 1.5 billion monthly users provides an almost impenetrable advantage over its competitors,” says Rahul Shah, CEO of Ideal Asset Management, based in New York. And the purchase of Instagram in 2012 has proven to be an ad revenue bonanza.
DaVita Health Care Partners (DVA)
This Denver-based company makes kidney care and dialysis products and its performance has been stellar — rising from 90 cents a share in April 2000 to almost $74 today. “Unfortunately, it’s a growth business due to higher incidences of diabetes and high blood pressure,” says Robert R. Johnson, president and CEO of The American College of Financial Services in Bryn Mawr, Pennsylvania. “Given that poor health habits — obesity in particular — look to be on the rise and not the wane, the future of DVA is bright.”
Notis Global
For three magical months, this cannabis company formerly known as Medbox got high. Priced at $2 a share in late September 2012, it hit the barely conceivable peak of $98 on Jan. 11, 2013. So what happened? Colorado and Washington state legalized recreational marijuana. NGBL is an over-the-counter stock now trading a 1 cent per share. Barry Randall, technology portfolio manager for Covestor, and a registered investment advisor based in Boston says, “Hopefully, this should encourage sensible investors to remember that when it comes to penny stocks, just say no.”
Starbucks Corp. (SBUX)
If cannabis stocks don’t satisfy your profit cravings, then consider this cuppa financial joe: Starbucks has multiplied its value by more than 11 times since 2000. “But more interesting is the resurgence of SBUX after longtime CEO Howard Schultz returned to the company in 2008,” says Jeff Reeves, executive editor at InvestorPlace.com. “From moving beyond coffee to foods, tea and juices and expanding the brand into things such as instant coffee and ice cream, Schultz made Starbucks a winner again.” And you thought Frappucinos were tempting.
Alphabet (GOOG, GOOGL)
The day after its initial public offering on Aug. 19, 2004, stock in the former Google traded for $54.21 a share. Some 12 years later, Alphabet tops $700. “Google turned a dominant position in Internet search into the world’s leading digital advertising platform,” says Andrew Wetzel, portfolio manager and senior research analyst at F.L.Putnam Investment Management Co. in Wellesley, Massachusetts. And while some have knocked Alphabet’s “moonshots” (such as driverless cars), management and disciplined cost control have happy investors poised for a bull run to last another dozen years.
Monster Beverage Corp. (MNST)
Somewhere along the line, the quaint little maker of healthy juice and soda — known as Hansen Naturals — underwent a metamorphosis worthy of the Incredible Hulk. He would turn even greener with envy seeing a share price catapult that made tycoons out of casual investors. “From January 2001 to December 2015, the stock grew from a split-adjusted price of 24 cents to $150,” says Gerald Jensen, a professor at Creighton University’s Heider College of Business in Omaha. “This amazing performance is unparalleled even by the majority of prominent technology stocks.”
Walt Disney Co. (DIS)
Disney’s recent dip is a blip when compared to peerless performance since March 2009. Up more than 550 percent and trading at $104 a share, Disney is “often overlooked,” says Jerry Braakman, chief investment officer of First American Trust in Santa Ana, California. “The Disney business strategy is centered around their ability to develop dreams into entertainment.” Speaking of dreams, Disney now boasts Marvel Comics and the Star Wars franchise in its movie-making juggernaut. “Oh, and then there’s ESPN, the leader in sports content and broadcasting,” Braakman adds.
Keurig Green Mountain
OK, 2015 was terrible for the K-cup coffee pioneer, which shed more than half its value between January ($132) and November ($49). Blame a home soda system that drew scathing reviews — but before that, GMCR boasted a caffeinated runup for the record books. Keurig stock catapulted from $1.50 a share (2004) to that $132 figure. As for the future, Keurig announced plans in December to go private in a cash deal worth $13.9 billion, or $92 a share. And so, this legendary investor brew comes to an end.
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8 of the Most Incredible Investments of the 21st Century originally appeared on usnews.com