Another brouhaha in the tech world as Apple Inc. is in the crosshairs of the Department of Justice (DOJ) for allegedly monopolizing the smartphone market, stifling competition in its wake.
Apple rebuffs the claims, asserting its technological prowess doesn’t stifle competition; it’s just competitors unable to keep pace. Speculation abounds on when the storm will clear, leaving investors on edge.
Seeking solace from the tempest, divert attention to hidden gems lying in the shadows of Wall Street’s microscope. Companies like Upstart Holdings Inc. (UPST), Snap Inc. (SNAP), and Salesforce Inc. (CRM) offer promising horizons, drawing inspiration from Apple’s tree of growth.
Upstart Sparks Portfolio Enthusiasm
Amidst the chaos, Upstart emerges like a phoenix, down merely to 36% of its peak. Analysts foresee a 165% surge in earnings per share (EPS) over a year, marking a renaissance beyond numbers.
The impending interest rate cuts by the Federal Reserve create fertile ground for recovery, propping up Upstart’s clientele—from personal loan seekers to mortgage hunters—keying into Upstart’s solutions.
A wave of new financing beckons in various sectors with Upstart riding the crest to originate loans, mirrored by the momentum in Carvana Co. (CVNA) and D.R. Horton Inc. (DHI). Investors willing to pay a premium price acknowledge the untapped potential within.
Institutions like the Vanguard Group showing faith with a 2.3% stake increase and the American International Group boosting exposure offer a testament to Upstart’s credibility, amidst tech giants’ shadows.
Snapchat’s Rejuvenation
With the antitrust umbrella looming large, TikTok faces turmoil, clearing the path for Snap Inc.’s luminary. Gaps left by the TikTok exodus could cascade onto Snap’s plate, reflecting in Wells Fargo & Co.’s reinforced price targets and EPS growth projections.
Trading at 64% of its prime, Snap lurks in anticipation of a 40% rally, underscoring the latent potential waiting to unfurl.
Salesforce Tethered to Economic Cycles
Nestled in business services, Salesforce braces for a surge as interest rates dip, fostering a new era of commercial vigor propelling the ISM services PMI towards a northward trajectory, attracting strategists like Fisher Asset Management.
Projections hint at a hearty 15% EPS growth in the upcoming year, coupled with a bargain basement price-to-book (P/B) ratio amidst industry peers, aligning the stars in Salesforce’s favor. Canaccord Genuity Group envisioned Salesforce’s ascension, offering a compelling scenario for astute investors.
Catch the full story “Apple Faces DOJ Scrutiny, but Not These 3 Under the Radar Names” on MarketBeat.
