3 Overpriced Growth Stock still worth buying in 2021

2020 has been a wild year for growth stocks. The pandemic hit the economy hard, but with low interest rates money still needs to go somewhere, and stocks that have the potential to grow in coming years become the perfect choice for the flood of money.

Are these growth stocks overpriced? Should we still consider buying them in 2021? We are covering 3 stocks that you might still want to buy, even they have already grown multiple times in 2020.

Growth Stock 1 – Cloudflare Inc (NYSE: NET)

Cloudflare delivers a range of network services to businesses around the world, and is famous for providing reliable and advanced security services for websites and applications. With earning well above analysts’ prediction, the stock price of Cloudflare has grown over 300% in 2020.

Why still worth buying ?

The pandemic has led to digital transformation for businesses around the world, and the trend is going to continue in 2021. More websites and applications will be created and the demand for web infrastructure and security is going to skyrocket.

Cloudflare might be the most popular web security service provider among developers, and will be benefited from the digital transformation. The entry into JAMStack, the modern way of developing frontend applications, will also be another huge growth opportunity for Cloudflare.

It is a bold prediction, but the market cap of Cloudflare could goes up to $100 Billion USD in coming years, from today’s $24 Billion USD.

Growth Stock 2 – Sea Ltd (NYSE: SE)

Sea Ltd is the largest consumer Internet company in South East Asia, running an integrated platform consisting of digital entertainment, electronic commerce, and digital financial services. Shopee, owned by Sea Ltd, is the leading E-commerce platform in South East Asia. With the economic growth shifting to Southeast Asia in recent years, Sea Ltd’s stock price has already grown by 400% in 2020.

Why still worth buying ?

Southeast Asia’s economic growth is not going to stop. They have the highest ratio of young adults, spend the most time on the internet, and the population continues to grow.

With all 3 core businesses of Sea Ltd — Garena (game development and publisher), Shopee (E-commerce platform) and SeaMoney (e-wallet services & payment processing) seeing huge growth potential, the current market cap of $100 Billion USD might easily doubled.

Growth Stock 3 – Fiverr International Ltd (NYSE: FVRR)

Fiverr International Ltd is the largest online marketplace that connects businesses with freelancers offering digital services like graphic design, digital marketing, programming, video and animation and more. The pandemic has accelerated its growth, and it reflected in its stock price, growing over 700% in 2020.

Why still worth buying ?

The pandemic is not going to end very soon, and may it ending in 2021 or not, it might have already altered this generation’s working landscape. A stable job, working in an office and getting paid for a fixed salary is not COOL for the younger generations. People are demanding work-life-balance and doing stuff they like.

Businesses are also starting to realize benefits of remote working, and with nowadays’ technology and various SAAS tools, the need for getting back to office 5 days a week might be redundant for lots of industries. A new format of work and employment might see its rise after the pandemic.

With more people and businesses getting into the freelance market, the Amazon for Freelancers – Fiverr, has huge opportunity to grow. We might see the current $8 billion USD market cap tripled or even quadrupled in the next few years.