Chasing the next trend thing after AI is easier said than done. It is also a pretty risky strategy. Companies that have ambitious goals also need a good deal of cash to achieve growth in their areas of focus. Many such companies end up running out of capital and going bankrupt. And for those that do, investors certainly don’t want to be caught in a dilution cycle as they churn through that process.
That said, it is possible to make many promising investments to try and catch the next mega trend after AI. Certain sleeper stocks have strong underlying businesses and are sitting on a boatload of cash. Many of these firms have enough funding and excitement to keep operations going until they hit profitability. If they become successful, you’ll be laughing your way to the bank in the long-run.
Here are three such sleeper stocks to consider right now.
CRISPR Therapeutics (CRSP)
CRISPR Therapeutics (NASDAQ:CRSP) is a pioneering gene-editing company revolutionizing the treatment of serious diseases. With a robust $2.1 billion cash position as of Q1 2024, I believe CRISPR is well-funded to weather any near-term R&D challenges and forge ahead with its CRISPR-based therapies.
In my view, gene editing is poised to be the next transformative megatrend in biotech, and CRISPR Therapeutics is leading the charge. The company’s CRISPR/Cas9 platform enables precise genomic modifications to treat a wide range of devastating illnesses, from rare blood disorders to common cardiovascular conditions.
CRISPR isn’t just a one-trick pony, either. Beyond its approved CASGEVY treatment for sickle cell disease and beta-thalassemia, the company has a deep pipeline spanning oncology, diabetes, and in vivo therapies. With ongoing trials for next-gen CAR-T candidates CTX112 and CTX131, plus in vivo assets CTX310 and CTX320, I expect a steady stream of catalysts to fuel CRSP’s momentum in the coming years.
Yes, biotech investing carries inherent risks. But CRISPR Therapeutics’ diversified portfolio and rock-solid balance sheet set it apart. In a field littered with cash-burning, all-or-nothing bets, CRSP stock appears to be built for the long-haul.
If you’re seeking exposure to a cutting-edge field with enormous disruptive potential, look no further than CRISPR. If this tech pays off as many think it can, this is a company that likely holds enormous upside.
IonQ (IONQ)
IonQ (NYSE:IONQ) is a quantum computing company making serious headway in identifying potential production applications. I believe quantum computing could be the next big thing after AI, and IonQ is well-positioned to benefit from this megatrend.
In Q1 2024, IonQ exceeded the high end of its revenue guidance, delivering $7.6 million versus a range of $6.5-7.5 million. Since going public in 2021, the company has outperformed its quarterly revenue midpoint for 10 straight quarters.
In addition, IonQ raised its bookings guidance for the year, citing the passage of the U.S. federal budget and strong customer interest in quantum computing and networking. The company booked $250,000 of revenue in Q1 and noted its pipeline is stronger than ever.
While IonQ is seeing heavy losses today, I believe it could be a needle-mover in the next big hype cycle. However, investors should know this is a very long-term, risky bet. IonQ does not have enough cash to survive until profitability, and it could take a decade or more for quantum computing to become something tangible. But who knows? Maybe it could also jump into people’s lives in a flash like AI.
For the record, I don’t think this company will run out of cash. The company’s current pile is notable.
Even if IonQ runs out of private funding or performs badly in the stock market, the government is unlikely to allow a setback in quantum computing. For those betting on this long-term trend, this is a stock to consider in my view.
Joby Aviation (JOBY)
Joby Aviation (NYSE:JOBY) is developing electric vertical takeoff and landing aircraft for commercial passenger service. Flying cars could be the next big thing in transportation, and Joby is making remarkable progress toward this futuristic vision. In Q1, the company started submitting system-level test plans, a key part of the fourth stage of the FAA-type certification process. As such, it could potentially start commercial operations in 2025.
I believe Joby is well-positioned to be the next Tesla (NASDAQ:TSLA) of this industry, as it has the largest cash pile among competitors and has formed partnerships with major players like Toyota (NYSE:TM) and Uber (NYSE:UBER). While the concept of flying cars is still very experimental, the cooperation from authorities so far is encouraging. Wealthy individuals in big cities may be willing to pay a premium for the convenience of flying car rides.
Rides in big cities are pretty expensive anyway. Uber’s CEO was shocked when a journalist told him he paid $52 for a 3-mile ride. Thus, a profitable flying car business could be doable if people are already paying that much.
On the date of publication, Omor Ibne Ehsan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
