The Nasdaq-100 Technology Index has seen a significant surge since 2019, rising over 82%. This boom has largely been fueled by excitement around the AI revolution. With various stocks experiencing consistent growth, a trend of top-heavy leadership may persist for the foreseeable future.
While indices like the Nasdaq continue to witness these dynamics, it’s crucial for investors not to overlook hidden treasures within the technology realm that demand attention.
Enter three tech stocks poised to catapult investors into millionaire status over time. For those patient enough to watch the magic unfold, these companies with robust business models and ties to high-growth sectors make a compelling case for consideration.
Let’s delve deeper into these potential wealth generators.
Unleashing the Power of Shopify (SHOP)
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Kicking off our list is the e-commerce giant Shopify (NYSE: SHOP). The company made waves among investors and analysts with its recent earnings report. Shopify delivered an impressive 34 cents in adjusted earnings per share, a stark improvement from the 7 cents reported during the same period the previous year.
Total revenues witnessed a 23.6% year-over-year increase, primarily fueled by its Subscription Solutions. Merchant Solution revenues also grew by 21.3%, complemented by a 23% rise in Gross Merchandise Volume.
Additionally, adjusted operating income soared to $396 million in the corresponding quarter of 2023. As of December 31, 2023, Shopify proudly announced a $5 billion cash reserve, a slight uptick from the $4.92 billion in September 2023.
Specializing in offering a robust tech platform that connects a plethora of merchants with millions of shoppers, Shopify presents more growth potential compared to many of its marketplace peers. With increasing profit margins and a parallel growth in earnings per share, Shopify’s stock bears a fundamental growth narrative that warrants attention. Among long-term growth stocks in the tech domain, Shopify stands tall as one of the top contenders.
Decoding the Potential of Coinbase (COIN)
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Following its February 15 earnings release, Coinbase Global (NASDAQ: COIN) leaped a staggering 41% in the past month. Much of this surge can be attributed to the ongoing upswing in digital assets, which seem poised for further elevation after a brief hiatus.
Options activity has steered substantial interest towards COIN, mirroring the trend seen in numerous other volatile tech stocks viewed as high-risk, high-reward prospects. Despite trading at $240.37 on March 15, far-out-of-the-money puts continued to command significant premiums, implying that some pessimistic investors are staking massive bets on the stock plummeting further.
If this rally gains momentum and transactions continue to escalate on Coinbase’s platform, this could be a stock with an undervalued fundamental valuation. Notably, Coinbase is increasingly pivoting towards subscriptions and services, culminating in a $1.5 billion revenue in 2023. Its offerings encompass staking, custody, and stablecoins, aiming to bolster cryptocurrency’s broader utility.
The fate of Coinbase hinges on the ebbs and flows of the cryptocurrency market. Rising capital inflows and escalating asset prices serve as magnets for increased user influx and transaction volumes, proving beneficial for Coinbase. Shareholders need to brace for financial turbulence amidst market vicissitudes. Despite challenges, COIN continues to innovate and expand globally, striving for consistent profitability regardless of market conditions.
Unveiling the Prominence of Oracle (ORCL)
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Oracle’s (NYSE: ORCL) stock catapulted nearly 12% to a record $127.54 post its stellar fiscal Q3 earnings report unveiling. The adjusted EPS surpassed estimates at $1.41, albeit revenue marginally falling short of expectations at $13.28 billion.
Oracle’s primary revenue driver, the cloud services and license support segment, witnessed a 12% revenue upswing to $9.96 billion, surpassing analyst predictions. Deutsche Bank upped its Oracle shares price target from $135 to $150, buoyed by CEO Safra Catz’s reaffirmed fiscal 2026 guidance and robust cloud infrastructure outcomes. Additionally, UBS analysts hiked their Oracle shares price target to $150 from $130, showcasing optimism surrounding top-line growth, OCI expansion, AI backlog, and prospective perks from an AI-driven cloud migration in 2024/2025.
Sporting a modest forward price-earnings ratio of 20-times and a promising growth outlook, ORCL stock emerges as a beacon of value amidst the tech spectrum. Chairman Larry Ellison foresees a sustained surge in demand, fueled by significant cloud contracts awarded to the firm. Analysts envisage a robust 14% annual adjusted earnings growth, laying the foundation for continued stock upsurge.
Often underestimated in the tech stock realm, Oracle currently boasts a valuation too promising to disregard.
On the date of publication, Chris MacDonald did not hold any positions, directly or indirectly, in the securities mentioned. The views expressed in this article adhere to the InvestorPlace.com Publishing Guidelines.
