Stocks like Snap, Lemonade, and Aehr Test Systems may prove to be better investments than cryptocurrencies.
While cryptocurrencies could attract speculative investors due to impressive gains from top tokens over the past decade, historical performance doesn’t guarantee future success. Many cryptocurrencies often react more to headlines than their actual scarcity or the usefulness of their blockchains.
Instead of diving into volatile cryptocurrencies, it may be wiser to focus on high-growth tech stocks. Below are three notable stocks—Snap (SNAP 1.06%), Lemonade (LMND 3.31%), and Aehr Test Systems (AEHR -2.65%)—that may outperform cryptocurrencies.
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Snap
Snap, the company behind Snapchat, faced challenges in 2023, primarily due to Apple‘s privacy updates on iOS, strong competition from ByteDance’s TikTok and Meta‘s Instagram, along with difficult market conditions that impacted ad sales. Additionally, it had trouble increasing daily active users (DAUs) in North America.
However, in 2024, Snap reported a 16% revenue increase, driven by:
- Strong growth in international markets
- Innovative first-party ad tools that countered Apple’s iOS changes
- Expansion of Snapchat+ subscriptions
- AI-enhanced AR lenses
- Improved video recommendations on Spotlight
The first quarter of 2025 saw a 9% year-over-year growth in DAUs, reaching 460 million. While Snap refrained from providing additional guidance due to potential tariff impacts on ad sales for Chinese e-commerce, analysts anticipate a 9% revenue increase for the year to $5.84 billion, with adjusted EBITDA expected to rise by 6%. From 2024 to 2027, projected growth rates are 10% for revenue and 32% for adjusted EBITDA.
Lemonade
Lemonade has established a niche in the insurance sector with its AI-driven platform, which simplifies onboarding and claims through automated systems. This approach has made it particularly appealing to younger, first-time buyers of insurance.
Initially providing homeowners’ and renters’ insurance, Lemonade expanded its offerings to include more term life, pet health, and auto plans following its public launch five years ago. The company has been careful to share some risks with larger reinsurers to mitigate potential losses.
In 2023, Lemonade’s customer and premium growth slowed due to delays in rate approvals for home and auto policies, impacting its ability to issue new policies. However, growth resumed in 2024 after gaining those approvals, and its customer base grew 21% year-over-year to 2.55 million in the first quarter of 2025. Analysts project a CAGR of 41% for revenue from 2024 to 2027, with adjusted EBITDA expected to become positive by the final year. Such growth is remarkable for a stock trading at just 4x this year’s sales.
Aehr Test Systems
Aehr develops testing and burn-in systems for semiconductor manufacturers. Although it went public in 1997, it gained traction in 2021 as investors identified the potential of silicon carbide (SiC) chips, which can withstand greater voltages and operate more efficiently than traditional silicon chips.
SiC chips are ideal for various applications, including lasers, 5G networks, radar, and electric vehicles (EVs). Aehr is among the few firms producing testing and burn-in solutions for SiC chips. Despite a revenue decline in fiscal 2025 due to challenges such as a weak EV market and tariff-related delays, analysts foresee a revenue CAGR of 22% from fiscal 2025 to 2027, with positive adjusted EBITDA expected in the upcoming fiscal year and a 58% increase in fiscal 2026. Aehr’s growth drivers include surging AI demand for its tools, a recovering EV market, and ongoing global expansion.
Randi Zuckerberg, former director of market development at Facebook and sister to Meta CEO Mark Zuckerberg, serves on The Motley Fool’s board. Leo Sun holds positions in Apple and Meta Platforms. The Motley Fool has investments in and recommends Apple, Lemonade, and Meta Platforms. The Motley Fool also has a disclosure policy.
