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Prediction: 2 Stocks That'll Be Worth More Than Pepsi and Starbucks 5 Years From Now
SBUXStarbucks(SBUX) The Motley Fool·2025-01-05 09:10

Core Insights - PepsiCo is a major player in the beverage and snack industry with a market capitalization exceeding 200billion,whileStarbucks,foundedin1971,hasamarketcapofjustover200 billion, while Starbucks, founded in 1971, has a market cap of just over 100 billion [2] - Emerging companies like CrowdStrike and Coinbase, founded in 2011 and 2012 respectively, have the potential to surpass the valuations of Pepsi and Starbucks within five years if market conditions are favorable [3][14] CrowdStrike - CrowdStrike offers a comprehensive cybersecurity platform with nearly 30 modules, allowing customers to select products that fit their needs [4] - The company is experiencing growth through acquiring new customers and increasing module adoption, leading to an annual recurring revenue (ARR) of over 4billion,a274 billion, a 27% increase year-over-year [6] - Management aims to reach 10 billion in ARR within six years and expects a long-term free cash flow margin of 34% to 38%, potentially generating around 3.5billioninannualfreecashflow[7][8]CoinbaseCoinbasespathtoa3.5 billion in annual free cash flow [7][8] Coinbase - Coinbase's path to a 200 billion valuation is considered more challenging compared to CrowdStrike, but it still holds potential [9] - The regulatory environment for cryptocurrency is expected to improve, particularly with a pro-crypto political stance, which could lead to substantial adoption of cryptocurrency [10][11] - Coinbase had over 3billioninannualEBITDAafewyearsago,andifitcanreach3 billion in annual EBITDA a few years ago, and if it can reach 7 billion in EBITDA in the next five years, it could surpass Pepsi's valuation, given its current enterprise value is approximately 30 times its EBITDA [12][13]