The "people's currency" is unlikely to outperform this trio of fast-growing companies.
For over a century, stocks have proven to be the smartest long-term investment vehicle. While equities may not outperform bonds, gold, or real estate every year, their average annual returns far surpass other investment options. However, in recent years, cryptocurrencies like Dogecoin have captured retail investors' attention with meteoric gains. Yet, these three stocks are poised to deliver superior returns by 2026.
Why Dogecoin Lacks Long-Term Potential
Dogecoin gained popularity due to celebrity endorsements and meme culture, but it lacks fundamental competitive advantages:
- No Unique Blockchain Features: Dogecoin's transaction fees and settlement times are inferior to many other cryptocurrencies.
- Declining Daily Transactions: Averaging 17,000–30,000 daily transactions recently, down from 25,000–40,000 in 2019.
- Limited Utility: Only ~1,400 obscure businesses accept Dogecoin after eight years—a tiny fraction of global commerce.
👉 Discover smarter investment alternatives
3 Stocks Set to Outperform Dogecoin
1. Square (FinTech Innovator)
Square's dual-platform strategy positions it for sustained growth:
- Seller Ecosystem: Annual gross payment volume (GPV) grew 49% CAGR (2012–2019), projected to exceed $140B in 2021.
- Cash App: Monthly active users quintupled to 36M (2017–2020), with gross profit/user up 150% to $55.
- Crypto Integration: Bitcoin exchange provides crypto exposure without Dogecoin's volatility.
2. Ping Identity (Cybersecurity Leader)
Key advantages in the essential cybersecurity sector:
- Recurring Revenue: Annual recurring revenue (ARR) grew 19% YoY in Q2 2021.
- Attractive Valuation: Trading at <7x forward sales vs. inflated sector multiples.
- High Retention: 111% net retention rate shows existing clients spending 11% more YoY.
3. Pinterest (Social Commerce Pioneer)
Monetization potential outweighs short-term user fluctuations:
- Explosive ARPU Growth: Global average revenue/user surged 89% YoY in Q2 2021 (international +163%).
- Targeted Audience: Users actively post interests, enabling precise ad targeting.
- E-Commerce Synergies: Platform naturally bridges discovery and purchases.
FAQ: Key Investor Questions
Q: Why avoid Dogecoin despite its past gains?
A: Without utility or technical advantages, Dogecoin relies solely on speculation—unlike businesses generating real revenue.
Q: How does Square balance crypto and traditional finance?
A: Its Bitcoin exchange complements core fintech services, offering diversified growth without overexposure to crypto volatility.
Q: What makes Pinterest a long-term winner?
A: Its unique "intent-driven" user base commands premium ad rates as e-commerce evolves.
👉 Explore high-growth investment strategies
Conclusion
While Dogecoin embodies speculative hype, Square, Ping Identity, and Pinterest represent scalable businesses with proven models. Their focus on recurring revenue, user monetization, and market dominance positions them to deliver sustainable returns—making them smarter choices for the next five years.
Disclosure: The author owns shares in companies mentioned. This is not financial advice.