Yahoo Finance The Powerball jackpot is now a whopping $1.2 billion — but you'll also take home a hefty tax bill. Want to try your luck on the market instead? Here's 2 other 'long shot' bets
Halloween night’s Powerball drawing didn’t produce a billionaire. That means at the next drawing — on Wednesday night — the jackpot will be a staggering $1.2 billion.
That amount is for the winner who chooses to receive the money as an annuity spread over three decades. If the winner wants to accept the prize as a single payment, the cash value is estimated to be $597 million.
Uncle Sam needs his cut, too. Forbes estimates that a single taxpayer with no other income, dependents or tax deductions can expect to pay roughly $220 million in taxes on that prize money.
According to Powerball, the odds of winning the jackpot are 1 in 292.2 million.
Of course, playing the lottery isn’t the only way to bet on long shots. If you’d rather get rich quickly in the stock market, you can invest in “lotto ticket” stocks with significant “multi-bagger” potential.
They’re usually more volatile and risky — but the upside could be worth it. Here are two names to consider.
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Nio (NIO)
If you love volatility, you’ve probably heard of Chinese EV maker Nio.
Shares rose from $4.02 to $48.74 apiece in 2020, marking a staggering gain of over 1,100%. And thanks to the meme stock frenzy earlier last year, Nio continued to surge, reaching well above $60 in January 2021.
But parabolic runs don’t last forever. Nio has since pulled back significantly and now trades around $9.70 per share.
While Nio shares have been on a rollercoaster ride, its business continues to expand at a very impressive pace. The company had just reported that in October, it delivered 10,059 EVs, representing a 174% increase year over year.
Mizuho analyst Vijay Rakesh has a ‘buy’ rating on Nio and a price target of $40 — implying a potential upside of 312%.
Green Thumb Industries (GTBIF)
Pot stocks had a huge bull run a few years ago. Now, many of them are in the doldrums, which could be an opportunity for those who want to bet on a bounce.
Check out Green Thumb Industries, a vertically integrated cannabis company headquartered in Chicago. It has 17 cultivation and manufacturing facilities, six consumer product brands, 77 open retail locations, and operations in 15 U.S. markets.
Green Thumb stock hasn’t been a hot commodity lately: shares are down more than 40% in 2022.
Business, however, is still on the rise.
Revenue totaled $254.3 million for the quarter that ended in June, up 14.6% year over year and 4.8% sequentially.
But the best part has been the bottom line. Green Thumb earned a profit of $24.4 million for the quarter, marking its eighth consecutive quarter of positive net income.
Canaccord analyst Matt Bottomley has a ‘buy’ rating on Green Thumb and a price target of C$35 on its Canada-listed shares. Since these shares trade at around C$16 right now, the price target represents a potential upside of 119%.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
