Three underdog businesses have surfaced as strong rivals in the ever-changing stock market, with plans to take the lead in each by 2030. These have placed themselves in a smart position to profit from growing industries and new trends.
The first one’s asset base and revenue streams have significantly expanded with the recent acquisition of a multifamily platform. This action demonstrates the company’s dedication to diversifying its portfolio for long-term growth, further improving its position in the real estate market.
The second one can completely transform the advertising technology sector, as seen by the impressive expansion of its high-value clientele. As a result of the flood of important clients, Viant has seen significant revenue growth, indicating its ability to optimize profitability and market share in a highly competitive environment.
Last, the third one’s strategic reorganization has made it a strong contender in the finance industry, especially for micro, small, and medium-sized businesses (MSMBs). The organization is broadening its market reach by concentrating on revenue diversification and matching its offerings with client segmentation. These prospects are based on fundamental strategic objectives and industry trends, not just conjecture.
RMR (RMR)
RMR’s (NASDAQ: RMR) purchase of the CARROLL Multifamily Platform results in a stronger asset base and more diverse income streams. The acquisition of over 500 real estate experts and 66 properties with over 21,000 units has driven the total assets under management (AUM) to rise by more than 15% sequentially to over $41 billion from $5.5 billion. Private capital AUM represents the company’s successful entry into this market, with over $13 billion in AUM or around 32% of total AUM.
Additionally, the development trajectory of RMR’s residential business indicates the company’s focus on enhancing its expertise in home asset management. RMR Residential currently oversees $5.5 billion in assets and is well-positioned for future growth following the CARROLL purchase. The company’s $200 million General Partner Fund (Fund VII) contributes substantial equity cash, allowing the gross acquisition of almost $3 billion of residential real estate. Thus, this calculated move demonstrates RMR’s dedication to capitalizing on the residential real estate market’s long-term growth potential.
Overall, with over $200 million in cash reserves and no corporate debt, RMR has a healthy liquidity position indicative of its smart financial management. Therefore, by distributing its income across many real estate sectors, such as multifamily, office and mortgage REITs, RMR’s revenue diversification approach reduces market risk and improves growth opportunities.
Viant Technology (DSP)
Viant Technology (NASDAQ:DSP) saw a notable increase in clients who made sizable revenue contributions. Over 2023, there was a 20% rise in clients who generated over $1 million in contribution ex-traffic acquisition costs (TAC). This shows how well the programmatic advertising specialist has drawn in and kept hold of high-value clients, which is critical to increasing sales and profitability.
Even more rapidly, contribution ex-TAC — a crucial performance indicator in the advertising technology sector — grew to $42.6 million in the fourth quarter of 2023. By comparison, this is a significant 28% gain over the same period last year. The rise in contribution ex-TAC demonstrates Viant’s ability to maximize revenue after deducting TAC and reflects the company’s effectiveness in monetizing its advertising platform.
Lastly, customers have embraced Viant’s AI product suite, which includes cutting-edge tools like the Viant Data platform and the AI Bid Optimizer. Through artificial intelligence (AI), the AI Bid Optimizer assisted clients in realizing substantial CPM savings, an average of 35%. Therefore, this demonstrates how well AI-driven solutions work to maximize advertising budgets and improve clients’ returns on investment.
StoneCo (STNE)
StoneCo’s (NASDAQ:STNE) organizational reorganization aligns with customer segmentation, allowing customized solutions and improved client interaction. The organization emphasizes various customer categories, ranging from small- to medium-sized enterprises. This is bolstered by expanding the active client base for payments and banking (in 2023). Nearly 3.5 million active clients were part of StoneCo’s payment active client base, which grew by 37% annually.
Similarly, the number of active banking clients tripled annually to reach 2.1 million. This reflects StoneCo’s capacity to successfully target and cater to various clientele groups, stimulating expansion and involvement. Moreover, the financial services platform’s revenues increased by 24.4%, driving a 20.1% rise in StoneCo’s total revenue and income over 2022. Hence, these patterns show how StoneCo has increased its market share.
Finally, StoneCo’s MSMB total payment volume (TPV) climbed to BRL350 billion a year ($69 billion), a 20% annual growth. This noteworthy expansion results from StoneCo’s growing market share and volume of transactions with micro to medium-sized enterprises. Thus, StoneCo has successfully gained market share and increased transaction activity among its clientele, as can be seen in the acceleration of MSMB TPV.
On the date of publication, Yiannis Zourmpanos 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.