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When it comes to technology stocks, there are certainly
opportunities to snag massive returns.
FamZoo Staff via Flickr (Modified)
Imagine if you bought shares in cutting-edge tech companies like
) in the early days.
As for now, there is no lack of exciting technology. Just some
of the megatrends include mobile, cloud computing, the Internet of
Things and big data. No doubt, there will be lots of opportunities
for wealth creation.
OK then, what are some of the most cutting-edge tech companies
right now? Well, here's a look at five that stand out.
Cutting-Edge Tech Stocks: Tesla Motors Inc (TSLA)
The vision of
Tesla Motors Inc
) is to lead the "next technological era of the automotive
industry." And so far, the company has been making good on
At the core of Tesla is the cutting-edge tech of its dual-motor
powertrain, which uses two electronic engines that allows for
better performance, efficiency and distance.
Of course, a key part to this is the innovative battery packs,
which are based on lithium-ion cells and combine high storage
density as well as cooling systems, charge balance and durability.
In fact, the battery packs are likely to become a major business
outside Tesla's sales of autos. To this end, the company has built
, with the goals of driving down the price of battery packs by more
than 30 percent and to achieve net-zero energy usage.
Keep in mind that another cutting-edge technology is the use of
power electronics. In other words, Tesla has had to develop systems
that efficiently distribute power to generate torque and allow for
charging of batteries (such as by capturing energy from the
Oh, and of course, Tesla also has used other technologies like
forward radar, long-range ultra sensors and sophisticated software
algorithms to allow for vehicle stability and auto piloting. Hey,
the company even has a
Bio-Weapon Defense Mode
! Essentially, this is a filtration system that removes nearly all
particulate exhaust pollution, allergens and bacteria.
All this is amazing, right? Absolutely. But this also means that
TSLA stock is far from cheap, with a forward price-to-earnings
ratio of a hefty 66X. What's more, the stock has a history of
So for investors looking at TSLA stock, it is usually a good
idea to wait for a drop when thinking of making a buy.
Cutting-Edge Tech Stocks: Alphabet Inc (GOOG, GOOGL)
Among technology stocks,
) gives investors an extensive portfolio of cutting-edge tech,
which the company refers to as moonshots.
Just some of the projects include:
: A new-age wind turbine that, yes, is tied to kites.
: The use of drones to deliver packages.
: A medical device that helps make it easier for those with
Parkinson's disease to eat food.
Smart Contact Lenses
: These will do much more than just correct your vision. Smart
lenses will be powered by the sun and help collect information
about your health, such as glucose levels and blood-alcohol
Granted, there will be a plenty of flops. After all, there are
already signs that the
business - which creates automated thermostats - is in trouble.
But the good news is that Google has a solid history of
commercializing cutting-edge tech, such as with Android.
Besides, the company has several major business - like search,
video and mobile apps - that continue to grow and throw off
substantial amounts of cash flows. And the valuation on
is attractive, with the forward price-to-earnings multiple 19X.
This is not a bad price for a company that continues to remain
Cutting-Edge Tech Stocks: Rewalk Robotics Ltd (RWLK)
When Dr. Amit Goffer tragically became a quadriplegic, he did
something about it. He founded a company, called
Rewalk Robotics Ltd
), to create light, battery-powered wearable exoskeletons to make
it possible for wheelchair-bound people to walk. The system relies
on tilt-sensor technology as well as motion sensors, which detect a
person's center of gravity - allowing for natural motion.
Now, RWLK is still in the early stages, with revenues of $2.1
million in the latest quarter. As should be no surprise, a major
customer is the Veteran's Administration.
But going forward, there is lots of room for growth. For
example, RWLK recently secured a
for comprehensive coverage with a private insurer.
While the ability to walk again is incredible, there are other
medical benefits of RWLK. Let's face it, being confined to a
wheelchair can result in secondary medical problems like
osteoporosis, diabetes, heart disease, loss of lean mass and
difficulty with bowel and urinary functions.
Finally, the market opportunity is large. In the US, the
of those with spinal cord injuries is about 273,000 and is growing
by about 12,000 cases a year.
Cutting Edge Tech Stocks: Arista Networks Inc (ANET)
Arista Networks Inc
) is a top developer of cloud-based networking systems. The
platform, which is called the Extensible Operating System (or EOS),
is highly customizable and also provides for in-depth analytics,
network visibility and improved workflows.
All in all, these are the kinds of things that IT people want
when it comes to managing their complex networks.
And in the case of ANET, the company has a stellar tech team.
The co-founder and chief development officer is Andy Bechtolsheim,
who was the co-founder of
. He then went on to build
, which he sold to
Cisco Systems, Inc.
By the way, Andy was the first investor in Google!
Then there is the CEO, Jayshree Ullal. Her career in networking
technology spans over 30 years. Actually, before ANET, she was at
Cisco, where she was responsible for the $10 billion data center,
switching and services unit.
OK, what's the main goal with ANET? Really, it's to get a
big piece of Cisco's business. In fact, the networking giant has
filed a lawsuit regarding patent infringement.
But the legal situation does not seem to be a worry for ANET
customers. In the
, revenues jumped by 35.3% to $242.2 million and the non-GAAP
margins came in at a hefty 64.4%.
Then again, it seems like customers are making a major
shift to cloud-based solutions, which should mean that ANET
will continue to crank out strong growth for the long haul.
Cutting Edge Tech Stocks: New Relic Inc (NEWR)
When I recently talked to Lew Cirne - the founder and CEO of
New Relic Inc
) - he said he was getting ready to code at an upcoming
No doubt, he has a great engineering background, having worked
at companies like
). Then in the late 1990s, he started
and sold it to
) in 2006 for
But he was way too young to retire, so he launched New Relic.
For Lew, he saw that the IT market was poised for transformation
because of the cloud and mobile. As a result, he developed a
platform to help companies "collect, store and analyze massive
amounts of software data in real time" so as to improve application
performance, customer experience and business success.
This is something that has definitely been resonating with
customers. In the
, revenues shot up by 57% to $52.5 million and the
customer count came to over 13,500
, up from more than 5,700 three years ago.
But the opportunity is still in the early innings. For example,
New Relic currently has over 1,500 enterprise accounts but only 1%
generate more than $1 million or more per year. In other words,
there is a
$1.5 billion revenue opportunity
just within the existing customer base.
Tom Taulli runs the
InvestorPlace blog IPO Playbook
. He is also the author of
All About Short
. Follow him on Twitter at
. As of this writing, he did not hold a position in any of the
5 of the Most Cutting-Edge Tech Stocks on Wall
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