[ad_1]
You’ve probably noticed how volatile the tech sector is right now, and it may take a while before things settle down.
Tech-heavy Nasdaq Composite It’s down 20% over the past 12 months, and that means there are some great beaten-down tech stocks that have the potential to bring investors significant gains in the coming years.
If you have $5,000 to invest now — and your investment horizon is measured in years, not months — dividing that amount between Business desk (T.T.D 4.42%) And year (year 6.58%) It could be a smart move. This is the reason.
Image source: Getty Images
1. Business desk
Advertising companies haven’t had a great time since inflation can go up and down.
But the advertising industry, as a whole, is poised to benefit when the trade desk is renewed, even if it is currently experiencing a temporary slowdown. And the advertising market always works.
TradeDesk’s platform allows companies to buy ads across the Internet and connected devices, and is helping the advertising industry move away from online trackers called cookies.
Commerce Desk’s Unified Identity 2.0 is a replacement for online cookies that allows companies to target ads while still giving advertisers more privacy online.
Unified ID 2.0 is already in use. fuboTV, The Washington Post, Amazon Web Services and many more companies.
And while the advertising market is feeling the pinch right now, business desk sales are still growing at a healthy clip. Third quarter sales rose 31% to $395 million, and the company expects at least 24% growth to $490 million in the fourth quarter.
In the short term, trading desk growth may slow slightly as some companies try to gauge how much they should spend on advertising, but any pullback will be temporary.
Digital advertising may be in transition right now, but it’s still a huge opportunity. Research from Inside Intelligence projects that the digital advertising market will grow from $567 billion last year to $696 billion by 2024.
Additionally, while Trade Desk shares aren’t cheap right now, the company’s price-to-sales ratio of 16.5 is at its lowest in three years as of this writing.
2nd year
Some investors have dismissed Roku’s stock because they see it as nothing more than a pandemic game peaking when people are stuck at home, hungry for entertainment.
But that’s a short-sighted view, and the company’s third-quarter results prove it. Roku’s active accounts grew 16% year over year to 65.4 million, and the number of streaming hours on the platform rose 21% to 21.9 billion hours. By the beginning of the new year, these numbers had increased to over 70 million and 23.9 billion, respectively.
Not only did active accounts and streaming hours increase, but the company’s average revenue per user (ARPU) increased 10 percent to $44.25 in the third quarter.
That proves that Roku isn’t just an epidemic, but what about the company’s future in the coming years?
Roku should benefit from the digital advertising market that the business desk is using. As the leading video streaming platform company in the US, Canada and Mexico, Roku could benefit from the rise of streaming, regardless of which services are popular in those countries.
Sales rose 12 percent to $761.4 million in the quarter, showing that even in tough times, Roku can grow its business.
And Roku’s stock trades at a price-to-sales ratio of just 2.3, a bargain compared to the past few years.
Remember these are long term downloads.
It may be tempting to expect tech stocks to soar, but investors need to be patient as they assess the broader economic picture.
But if you have a multi-year investment timeline, these two tech stocks look like good buys now that could be smart investments just a few years down the road.
John McKee, former CEO of Whole Foods Market, a subsidiary of Amazon, is a member of the Motley Fool’s board of directors. Chris Neiger has no position in the mentioned stocks. The Motley Fool has and recommends spots in Amazon.com, Roku, Trade Desk and fuboTV. The Motley Fool has a disclosure policy.
[ad_2]
Source link
