These tech stocks offer an attractive risk/reward as the markets start pushing in the right direction
- These tech stocks to buy offer incredible upside ahead as the markets start to tick up again.
- SoFi Technologies (SOFI): The crème da la crème of the fintech space.
- C3.ai (AI): AI could be a $600 billion market and C3.ai could be a major player in the space.
- Tesla (TSLA): Continues to deliver on both lines as it eyes another record-breaking year.
The tech-heavy Nasdaq 100 surged almost 20% and is on track to close out its best quarter since 2020. Hence, it’s no wonder that the spotlight is on the top tech stocks to buy.
As our hypergrowth expert, Luke Lango has been ringing the bell of opportunity for months now for investors to take advantage of discounted prices in the best tech stocks. The window of opportunity is limited, though, which is why investors must act quickly and reap the rewards.
It’s perhaps the right time to be a risk-taker and look for some thrilling tech stocks for hefty gains. To help identify the most thrilling tech stocks, I’m using a beta value of more than 1.5. Stocks with a beta of over 1.5 are highly volatile and can move 50% quicker than the market.
Data last updated: April 6, 2023 12:40 AM EDT
|Sofi Technologies Inc
Tech Stocks To Buy: SoFi Technologies (SOFI)
SoFi Technologies (NASDAQ:SOFI) has quickly established itself as a juggernaut in the fintech space through its one-stop-shop financial solution. It continues to move from strength to strength every quarter, posting double-digit revenue growth and effectively narrowing its losses.
It posted stellar results in its fourth quarter, surpassing expectations by a hefty margin on both lines. More importantly, it narrowed its losses to $40 million, or five cents a share, while analysts had predicted a nine-cent loss. Moreover, it reported an incredible $70 million in adjusted EBITDA, a significant bump from the $5 million figure it posted in the same quarter last year. These results put it on track to break even on a GAAP basis by the fourth quarter of this year.
During the ongoing banking crisis, SoFi has seized the opportunity to increase its market share. It recently launched a $2 million solution to boost FDIC insurance limits for customer accounts. Deposit inflows during the first quarter are expected to be north of $2 billion, surpassing the $9 billion mark. Despite a robust outlook ahead, SOFI stock still trades under three times forward sales and is set to maintain its strong momentum of late.
C3.ai (NYSE:AI) has established itself as a leader in artificial intelligence () turnkey solutions for companies spread out across multiple industries. This approach allows its clients to effortlessly integrate AI applications into their systems without going into a complex and time-consuming customization process. According to its CEO, Tom Siebel, the market is pivoting to ready-to-deploy, cost-effective enterprise AI solutions rather than wasting a ton of money creating tailor-made solutions.
Moreover, according to Mr.Siebel, the AI market could be worth a massive $600 billion, with enterprise AI applications becoming a key catalyst for the sector. The popularity of generative AI has propelled companies such as C3.ai to the forefront of the AI revolution. Some of the biggest tech giants in, Microsoft and Amazon, are part of its client base, a testament to the quality of the firm’s service.
In the last quarter, C3.ai reported revenues of $66.7 million, which surpassed its guidance of $63 million to $65 million and analysts’ average estimate of $64.3 million. Moreover, excluding certain items, its loss stood at $15 million, well within its guidance range of $25 million to $29 million. Considering its recent progress, the firm will become cash-flow positive and break even by the end of 2024.
Despite Tesla’s (NASDAQ:TSLA) shares trading more than 40% lower than its 52-week high price, it still managed to climb an impressive 65% year-to-date. Investors seem to be shifting focus from concerns about CEO Elon Musk’s Twitter purchase to the company’s solid fundamentals. Its position as an undisputed leader in the electric vehicle industry remains unchallenged, with it showing no signs of slowing down.
In the fourth quarter earnings call, Mr. Musk swiftly addressed concerns about demand deceleration, highlighting how price cuts led to unprecedented order levels. According to the maverick entrepreneur, Tesla witnessed its strongest orders year-to-date in January and expects to deliver 2 million cars in 2023.
Annual sales skyrocketed by 51% to $81.4 billion, while net income shot up over 127% to $12.5 billion. Deliveries were up 40% from the prior-year period to 1,313,851 vehicles as it closed out its fourth quarter with a robust cash position of $22.4 billion. Hence, it remains in an excellent position to continue delivering the goods for its investors in a bull run ahead.
This post originally appeared at InvestorPlace.
On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.