Should Investors Buy These Tech Stocks Right Now?
Growth stocks soared over the past year, with tech stocks leading the pack. If you want to make money in the stock market, finding undervalued companies with strong growth potential is one way to go. But oftentimes, finding them may not be as straightforward as it seems. If you don’t already know, growth stocks are companies that increase their top line faster than the average business in their respective industries.
Now, a big reason for the recent selling has been the rotation to cyclical stocks. With the accelerating vaccination efforts and stimulus hopes, these companies could rebound strongly along with the reopening of the economy. While it is true that there has been ongoing rotation to cyclical stocks from growth stocks, that doesn’t mean cyclical stocks are always going to be better investments than growth stocks. However, if you’re still looking for tech stocks to buy with high growth potential, read on.
How To Look For The Best Growth Stocks To Buy?
There are certain steps you can take to look for high-growth stocks in the stock market today. With vast information on the internet, many can now go on the journey of investing in top growth stocks. The aim is to buy at a reasonable price, and hang on as revenue and earnings rise over time. If you think of specific companies that could benefit from a major trend, that may be a good start. Perhaps you think cybersecurity is a great place for growth. If so, you may consider Cloudflare (NYSE: NET) or Crowdstrike Holdings (NASDAQ: CRWD) the top growth stocks to buy. And as you dive deeper, you may identify their competitive advantages and future addressable markets. That way, you may increase your chance of picking highly potent growth stocks. With all that in mind, here are 3 growth stocks you can ride on potentially powerful long-term trends.
Top Tech Stocks To Watch Right Now
- FuboTV (NYSE: FUBO)
- Palantir Technologies (NYSE: PLTR)
- Unity Software (NYSE: U)
FuboTV
FuboTV is a leading sports-first live TV streaming platform. Indeed, as a key player in the sports streaming market, Fubo would cater to viewers outside the scope of traditional streaming services. No doubt, having one platform for curated sports content at an affordable price could appeal to sports fans now. And it seems to be paying off really well for the company.
From its most recent quarterly earnings, revenue came in 135% higher year-over-year to $119.7 million. In addition, the subscriber’s growth also came in 105% higher year-over-year to 590,430, including 43,000 net additions in the quarter. FUBO stock is currently up 21% as of 7.52 a.m. ET. Additionally, Fubo is currently working on integrating real-time sports betting features onto its platform. In theory, this would provide an interactive all-in-one service where consumers can watch and bet on their favorite sporting events. For investors, this could make FUBO stock worth investing in, given its position in the streaming and online betting industries.
Despite all of this, Fubo does not appear to be slowing down anytime soon. Last month, the company acquired exclusive live streaming rights to the Qatar World Cup 2022 Qualifying matches. Simply put, this is a fantastic play by the company as it will be covering one of the largest sporting events in the world. While it may just be the qualifying matches, this marks a step in the right direction, nonetheless. Now that the company has closed its strongest quarter in history, could now be the time to be serious with FUBO stock?
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Palantir Technologies
Palantir is a developer of software and analytics tools for the defense industry and large corporations. The company’s stock jumped more than 9% on Tuesday’s intraday trading. This came after the company reported solid first-quarter results. From the report, the revenue came in 49% higher year-over-year to $341 million and its cash generation also improved dramatically. More importantly, the management expects revenue to increase 43% to $360 million in the second quarter.
The company operates two segments, commercial and government. Its Palantir Gotham platform is constructed for analysts at defense and intelligence agencies. In detail, it enables users to identify patterns hidden within datasets. This ranges from signal intelligence sources to reports from informants. The company has been expanding its partnerships and collaborations with a plethora of companies.
Interestingly, CFO David Glazer disclosed during a conference call that the company had begun accepting Bitcoin as a form of payment from its customers. He also said the company was considering converting some of its $2.3 billion in cash reserves into the popular cryptocurrency. Of course, whether that will eventually materialize is another question to answer. Palantir has certainly been firing on all cylinders as it continues to forge new partnerships and extend old ones. In addition, Palantir and Ringler AG announced a renewed strategic partnership to provide the latter with software to accelerate its shift to a digital-first global media company. With all these developments, will you consider adding PLTR stock to your watchlist?
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Unity Software
For gaming enthusiasts, Unity Software is a name that you may be familiar with. For starters, the company has a 3D software engine that makes it easy for developers to create new video games. The software company estimates that it has a 70% market share among the top mobile games right now.
Unity had also recently announced its first-quarter fiscal results. Revenue came in 41% higher to $234.8 million. The company’s first-quarter is reflective of the powerful transition from linear 2D to real-time 3D, which is one of the most important changes in how people interact with technology, according to President and CEO John Riccitiello. He added, “We believe that real-time 3D will continue to grow at an accelerated pace and achieve massive scale.“
Many gaming companies depend on Unity Software to create the latest and greatest that the gaming industry can offer. Companies use Unity’s real-time 3D technology to create immersive and interactive content. As the company commands a huge market share among top mobile games, it essentially gives Unity an indispensable position in the gaming industry and could very well fuel the company’s growth in the coming years. All things considered, will U stock be a top growth stock to buy for the long run?
