Buy the IZEA Stock Dip With Both Hands for 10X Gains

My top stock to buy for 2021, influencer marketing software provider IZEA Worldwide (NASDAQ:IZEA), had an amazing January. On the back of robust business momentum — the company had its best January in company history last month — IZEA stock soared from $1 in mid-December, to $7.50 by late January.

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Since then, IZEA stock has trended lower. Gradually, at first. Then more rapidly as Wall Street became hyper-concerned with rising interest rates and their impact on the equity valuations.

Today, IZEA stock trades below $4. It’s still up about 150% year-to-date — in just two months — but it’s also about 50% off its late January highs.

This sell-off is an opportunity to buy the dip. IZEA’s robust business momentum has accelerated in February, despite the share price declines, and it’s more clear today than ever before that this is one of the most exciting companies in the market with enormous long-term growth potential. Below $4, IZEA stock is materially undervalued relative to all that potential.

The investment implication, therefore, is simple. Forget the noise. Buy IZEA stock. Keep your focus on the fundamentals, and your eyes on the long haul.

IZEA Stock: A Brief Overview

First, let’s briefly go over IZEA, the company, and understand why IZEA stock is such an exciting long-term investment.

IZEA is an influencer marketing company. The business broadly breaks down into two components. On one side, IZEA manages influencer marketing campaigns for brands and businesses through a centralized software suite dubbed IZEAx which offers various services, including the ability to find influencers, programmatically manage campaign, and measure spend effectiveness.

On the other side, IZEA recently launched a new influencer marketplace — dubbed Shake — where influencers can list their talents in individual “Shakes” and brands/marketers can browse through those Shakes and contract influencers for campaigns and gigs.

Both of these businesses have huge upside potential, because influencer marketing is the future of marketing in a world where consumers are becoming increasingly wary of brand-driven ads and are more comfortable and trusting of “word-of-mouth recommendations”, which in the digital world are posts/recommendations from trusted influencers.

To that end, influencer marketing is the future of digital marketing.

IZEAx and Shake Positioned for Big Growth

Influencer marketing is the future. No doubt about it.

But it is still relatively new. And as such, traditional marketers aren’t all that good at it. They’re used to running digital ad campaigns on Facebook (NASDAQ:FB). They are not used to managing an army of influencers posting across various social platforms, through various mediums, to various audiences.

That’s why IZEAx will become an increasingly valuable platform. As more and more brands pivot into influencer marketing, more and more brands will use IZEAx to run those influencer marketing campaigns because they need the expert help and advice.

Meanwhile, the influencer marketing space is also very fragmented. And the true value in influencer marketing is in tapping highly effective micro-influencers (big influencers are very expensive, with a lower “trust factor”). There are thousands of micro-influencers out there, all of which have different personalities and tastes, and all of which are tapping different audiences.

Imagine buying something online without Amazon (NASDAQ:AMZN). That’s what it is like to contract influencers today.

Extending that analogy, Shake is turning into the Amazon of the Influencer Economy. Shake consolidates and centralizes this fragmented market, by creating a single platform where brands can discover micro-influencers. In so doing, Shake is creating a double-win marketplace where influencers can easily monetize their social platforms (regardless of how niche or small they are) and where brands can find the best influencers to match their campaign’s needs.

Big picture: Both IZEAx and Shake have huge upside potential over the next decade as the world increasingly adopts influencer marketing, and specifically, micro-influencer marketing. In a nutshell, that is why IZEA stock is such an exciting long-term investment opportunity.

Robust Business Momentum

The long-term bull thesis on IZEA stock has gained significant traction over the past few months, mostly because IZEA’s business has been absolutely on fire.

In the fourth quarter of 2020, IZEA reported that its Managed Services bookings increased 48% year-over-year. IZEA followed that up by reporting its best January in company history last month thanks to a bunch of new and expanded contracts.

Then, this month, IZEA signed more contract extensions, including extensions with multiple Fortune 200 companies. This has led to first quarter 2021 bookings already exceeding first quarter 2020 bookings by 20% — and we still have five weeks left. Assuming equal distribution of business activity across the entire quarter, that means bookings are on track to more than double in 1Q21.

In other words, IZEA’s business is on fire right now. It’s all thanks to IZEAx ramp. That is, Shake upside catalysts haven’t even shown up yet. That’s unsurprising, since this is such a new platform. But over the next few months, as the platform matures and expands, Shake will turn into a meaningful revenue contributor. At that point in time, IZEA’s growth trajectory will only accelerate.

All of that is really just a long-winded of saying that the long-term bull thesis of IZEA turning into the software backbone of the Influencer Economy is finally coming to life — and rapidly.

The company’s fundamentals will only improve as we head deeper into 2021. As that happens, IZEA stock will rebound from this near-term sell off and head materially higher.

Bottom Line on IZEA Stock

IZEA stock is one of my favorite stocks to buy today, especially on the heels of recent weakness in shares despite continued robust fundamental business momentum.

But it’s not my top stock to buy today for the next 10 years.

Instead, the best growth stock to buy today is a company that reminds me of a young Amazon (NASDAQ:AMZN). Indeed, I think buying this stock today could be like buying AMZN stock back in 1997 — before it soared thousands of percent.

Which stock am I talking about?

Click here to find out.

On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.

By uncovering early investments in hypergrowth industries, Luke Lango puts you on the ground-floor of world-changing megatrends. It’s how his Daily 10X Report has averaged up to a ridiculous 100% return across all recommendations since launching last May. Click here to see how he does it.

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