If you are an investor looking for stocks that have the potential to grow rapidly over the next five years then one company that may be of interest is Voyager Digital (Ticker: VYGVF/VOYG). This company is all-about cryptocurrency and runs one of the fastest-growing cryptocurrency exchanges in North America. They recently launched a card offering that allows users to buy everyday goods using cryptoassets held on the platform, showing their intent to become more than just another cryptocurrency exchange, but rather to offer banking services broadly to cryptousers.
With that being said I think we should get into the specifics of why this company is an intriguing investment in 2022, and may be one of the best crypto-related stocks of the year.
Growing Fast
Voyager Digital has managed to generate an impressive amount of revenue in the past year, achieving a revenue growth of over 100%, which is absolutely fantastic even for a low market-cap growth company.
This is primarily on the heels of cryptocurrency prices surging higher, as not only does this give them free marketing, which helps grow their business, but they also benefit directly due to trading volumes (and fees they charge) going up in US Dollar terms as cryptocurrency prices rise.
The Small Player Advantage
Many people would say Coinbase is better positioned due to being a larger company, but this is not the case — this is actually a severe disadvantage for coinbase. Smaller agile players like Voyager Digital are able to come out with news products much easier and get much more free marketing than the bigger traditional exchanges like Coinbase, saving massively on their cost-of-acquisition of new customers.
A good example of this is when you look at cryptocurrency comparison sites that compare Voyager Digitals product offerings they are consistently ranked as one of the best exchanges — for example when you look at comparisons of Voyager vs Coinbase you quickly come to the realization that Coinbase’s product offerings just aren’t very competitive anymore, and Voyager’s recent growth and outperformance is likely to continue.
It’s not just when you compare them to coinbase though, looking at comparisons of Voyager vs Gemini and you quickly come to the say conclusion — Voyager’s relatively small size and being the ‘new player on the block’ is a massive advantage for them, not a disadvantage.
Cheap Relative to Other Crypto-Stocks
When you compare voyager to other crypto stocks, such as Coinbase’s stock, Voyager’s stock is currently trading at HALF the price-to-sales ratio of Coinbase, meaning they’re either way undervalued or Coinbase is way overvalued, depending on how you want to look at this situation.
To be fair in this regard Coinbase is also significantly more profitable that Voyager today, but this is largely attributed to Coinbase not spending as much on advertising as Voyager is, however the growth rate of both players shows the difference in results that higher and lower adspend results in — Voyager is growing much quicker than Coinbase is.
Combined with the low P/S ratio of Voyager, you have a very compelling argument (based on their growth and relative valuation) that it would be a good idea to buy Voyager stock right now, especially since there are few if any catalysts currently expected to impact the company’s ability to go higher in price.
Of course it might not be right for you, and none of the above is financial advice, but it’s something to consider if such investments fit your risk-tolerance.
What’s Voyager Digital’s Future Look Like?
As mentioned before they’ve recently announced a mastercard linked to the Voyager platform that allows users to purchase everyday goods (such as groceries) with their cryptocurrency holdings, which is a very interesting product offering.
This is neat because it shows the company’s intent to become more than just a cryptocurrency exchange, but rather to offer banking and other financial services broadly — when recently they also came out announcing that they plan to expand their offerings to include cryptocurrency-related insurance products, fund-offerings (think being able to buy the crypto-market as a basket or ETF on their platform), as well as cryptocurrency loan services, which is a massive growth opportunity for them. Voyager also has touched on potentially allowing NFT’s and crypto-gaming assets to be traded on their platform, which could be another big growth opportunity.
The big question here will be whether they can execute on all of these plans, or if they’re going to suffer growing pains, and if the cryptocurrency market holds up or declines in the coming years — as really that’s what this all is resting on the shoulders of — if bitcoin and other cryptocurrencies decline majorly their revenues will follow and the company could be in trouble.
So Is Voyager Digital’s Stock A Good Investment?
This really needs to be answered on your own, but one thing is for certain — if the cryptocurrency market holds up, and if they can execute on their business plan, then this company has a very real chance of being a multi-bagger stock, greatly outperforming the market.
With that being said, if you’re looking to add a cryptocurrency related stock to your portfolio, or want some exposure to the cryptocurrency market without buying actual cryptocurrnecy, Voyager Digital ‘s stock looks to be one of the best choices to fill that niche in a portfolio currently.
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