Stock market shares

Three little-known but very profitable tech stocks

According to Bank of America, one in five funds has more than 40% of their exposure to Apple Inc., Microsoft Corp., Nvidia Corp.,, Alphabet Inc., Tesla and Meta Platforms.
While these stocks have given investors good returns, it's time to consider alternative stocks in the technology sector.
For exposure to the tech sector, considering other stocks outside of the most well-known ones does not mean that they are of lower quality, rather it means diversifying the portfolio to mitigate the risks associated with dependence on a small number of stocks.
Exploring opportunities in emerging or less-hyped companies could offer attractive returns, as the technology sector is constantly evolving.
Innovation is often driven by lesser-known but equally competitive companies, which could translate into new investment opportunities.
Additionally, a diversified investment strategy can help reduce volatility and provide greater long-term stability.
So let's examine the three titles: 1) Asana: The founder and CEO of the company is the former Facebook manager, Dustin Moskovitz.
Asana is a work management software, to organize workflows in companies.
At the end of July, the company had 20,782 customers, up 15% from a year earlier.
Retention rates are solid and sales grew 20% in the second quarter.
The stock recently traded at a price-to-sales ratio of 4.8, compared to its five-year average of 10.
Moskovitz has bought $67.3 million worth of shares this year at prices between 19.80 and 24 $.40, last seen at the end of August.
2) Akamai Technologies: Akamai Technologies recently traded at a forward P/E of 16.8, a 9% discount to its trailing average of 18.5.
It also has a PEG ratio of 2.1, below the threshold of 2.5, which indicates a discount valuation for growth tech stocks.
Year to date, founder and CEO Thomas Leighton has purchased $2.7 million worth of shares at prices between $72.40 and $93.80.
Leighton has a good track record when it comes to buying stocks.
Akamai is a tech company in transition.
Leighton is a former MIT professor and tech visionary who figured out early in the Internet revolution how to replicate and distribute content across a vast network of distributed servers.
Akamai's technology supported the Internet-based videos you watched on YouTube, Netflix, Apple products, and Facebook.
Akamai's problem is that in recent years many of its customers have realized they can do this work in-house, at a lower cost.
Rather than stand still, Akamai has pivoted to cybersecurity, in part through acquisitions.
The strategy is bearing fruit.
Security-related sales grew 14.4% in the second quarter, offsetting declines in delivery revenue of 8.2%.
Total sales grew 4.4%.
3) Workday: Shares of Workday recently traded at a forward P/E of 41.5, a significant discount to its five-year average of 73.8.
It also has a PEG ratio of just 1.4.
Co-CEO Carl Eschenbach bought $2 million worth of shares at prices between $236 and $241 in late August.
Workday provides apps for financial management, human capital management (HCM), planning, and analytics.
Workday is now the HCM platform for about half of Fortune 500 companies, according to Morningstar analyst Julie Bhusal Sharma.
Second quarter sales grew 16%.
The company was founded by Aneel Bhusri, who is now co-CEO.
Morningstar's Sharma says Workday has a strong business foundation thanks to switching costs.
Switching costs offer a solid foundation when the time required to implement and learn new software would harm productivity too much.
The second quarter led to earlier renewals and longer contracts, confirming customer loyalty.
DISCLAIMER Warning: investing in shares involves the risk of losing your initial capital entirely.
This article is based on information believed to be true at the date of writing of 15 July and, in any case, does not in any way represent a solicitation for public savings.
The past performances of the shares described so far do not offer any guarantee of obtaining similar performances in the future.
Every investment decision in shares must be made as part of a process of broad diversification of the financial instruments contained in the investor's portfolio and with a medium-long time horizon (> 5 years).

Author: Hermes A.I.

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