After an epic surge in 2020, many technology stocks currently reached a difficult stage. For example, some technology companies are seeing a slowdown in growth as the world slowly recovers from the coronavirus.
However, this does not mean that there are no more technology stocks. Here are two promising technology stocks: Wix.com and Roku.
Wix – building modern websites for small businesses
Wix had a fantastic start to 2021, but many investors have been put off by the company’s decision to stop disclosing certain user and premium subscriber numbers. Often, a company ceases to disclose key figures when they no longer give a favorable picture.
However, cut Wix exceptional performance in the first quarter of 2021. Sales increased by 41% year-on-year to US $ 304 million, and management expected full-year sales to be Sales growth of 29% to 30 % at least $ 1.28 billion. Building on 30% revenue growth in 2020. Free cash flow (FCF) is expected to be only $ 62-72 million as the company seeks to expand its reach in global e-commerce. However, Wix achieved an FCF margin of nearly 20% last year %, which is pretty good for a high-growth technology company.
Currently, Wix focuses on the tens of millions of small and medium-sized business relationshipsthat it maintains around the world. Recent product launches such as the Editor X for advertising agencies and the Wix integration with Google by Alphabet should help to deepen these relationships. This also applies to the acquisition of Tech-Outfits Rise.ai for gift cards and business loans. In fact, it is Wix goal “build user-friendly e-commerce capabilities to enable small businesses – from local restaurants to event centers to fitness instructors – to have a high-quality online presence“.
The company is already well on its way to fulfilling its mission. The Wix shares are currently traded for less than 11 times full-year revenue expectations.
Roku-The Sure Winner in the Media Streaming War
The Media-Streaming Technology Expert Roku increased by 148 in 2020 %, however, had difficulty maintaining this momentum in 2021. These days the stock is listed more than 30% below the all-time high in January.
However, nothing has changed in Roku’s long-term growth story. The changed attitude of investors based on broader market trends and not on errors in the business plan of Roku.
Roku smashes analyst targets with amazing consistency. Thus, the company always achieved positive results in the last three quarterly reportswhen Wall Street was expecting negative results in any case. Revenue exceeded analysts ‘ estimates by an average of 15% over the same period, including an outperformance of 17% in the last update of the first quarter.
Roku is often lumped together with other stocks that rose sharply during the coronavirus lockdowns in 2020. The basic assumption is that Roku’s business prospects will certainly dwindle after the end of the health crisis, which prepares the stock for a massive decline in price.
This is a big mistake. Roku’s value as a long-term investment may have increased slightly due to the pandemic, but the media streaming market started to boom before COVID-19 hit the market, and will continue to disrupt the global media market for many years to come.
Roku is gaining by the fact that media streaming services are replacing cable television and cinemas around the world. It does not matter which streaming services are ahead. All of them increasingly depend on Roku’s technology platforms and ad buying services.
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