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7 Explosive Tech Stocks Set to Dominate the Decade

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Tech stocks and software companies have recovered substantially in the past few years and continue to climb upwards as Wall Street feels comfortable slapping a higher and higher premium on these stocks. The tech sector’s resilience and growth potential have been the driving forces behind this bullish sentiment.

Of course, we all know that the Big Tech companies have dominated and will likely continue to be the top dogs in the tech industry in the coming decade. However, it is worth peering at some other tech stocks performing very well and playing critical roles in specific industries. These tech stocks are set to dominate their sectors and continue growing in the coming decade as well. I believe many of them could deliver much higher returns than some big tech companies today.

Here are seven tech stocks to buy.

Trade Desk (TTD)

The logo for The Trade Desk is displayed on a smart phone.

Source: Tada Images / Shutterstock.com

The Trade Desk’s (NASDAQ:TTD) Q1 sales increased 28% year-over-year (YOY). The growth here is much higher than its peers. Its 3-year revenue growth is 31.6% and is better than 86% of software companies. Plus, it beat its Q1 sales estimates by 2.1%.


Click to Enlarge

Source: Chart courtesy of GuruFocus.com

With over 90% of the top 200 advertisers now working with them, it’s clear the company could dominate the ad market in the coming years. Connected television continues to be a powerful driver of growth as streaming giants deepen their partnerships. However, the real game-changer is UID2, which is seeing a lot of adoption, combined with improved use of first-party customer information. This is rebuilding the internet’s identity framework to The Trade Desk’s advantage.

I would note that the market is paying a huge premium here. The stock trades at 114 times forward earnings. However, I think this is a fair premium, given the growth.

Booking Holdings (BKNG)

a person opens up Booking.com on a smartphone

Source: Denys Prykhodov / Shutterstock.com

Booking Holdings (NASDAQ:BKNG) has started the new year off on the right foot, as its results surpassed expectations in several important areas. It beat EPS expectations by 43.7% and revenue expectations by a stellar 3.74%. The stock is up 43% in the past year, and the solid profits here have allowed it to yield 0.93% in dividends.

The number of hotel room nights booked through its website saw a nice 9% bump compared to the same time last year, fueled by the ongoing strong demand from leisure travelers looking to get away — a reassuring signal as the always-critical summer season is on the horizon. While near-term reservations may go up and down, I’m encouraged by the company’s focus on building customer loyalty and driving more bookings directly instead of through other sites.

That said, the ongoing political turbulence in the Middle East adds some uncertainty to what we may see over the next few months, with the potential to slow down that growth in hotel room bookings. The U.A.E, Israel, Turkey and Egypt are very popular tourist destinations. Still, I remain optimistic about where the company is heading in the long term.

GoDaddy (GDDY)

GoDaddy website

Source: dennizn / Shutterstock.com

GoDaddy’s (NYSE:GDDY) stellar results for the first quarter of 2024 show that pockets of strength within the business continue to show resilience. Bookings for the Applications and Commerce segment accelerated significantly, with a 22% increase. With insights from the GoDaddy Software Platform, I wouldn’t be surprised if this positive momentum across its offerings persists as management works to optimize how the company’s various solutions generate revenue.

People mainly see this as a domain website. But what seems to be the true star, though, may be GoDaddy’s growing commerce offerings. Annual gross payment volume surpassed $2 billion, propelled higher by increased transactions from existing customers. Since launching the flexible Smart Terminal device, GoDaddy appears well-positioned to benefit from omnichannel retail.

The stock still provides good value at 29 times forward earnings. With the disciplined expansion of profit margins by 4% and 26% percent higher free cash flow, it seems GDDY is executing well across all aspects of the business.

Roper Technologies (ROP)

Source: sdecoret / Shutterstock.com

Roper Technologies (NASDAQ:ROP) continues to perform extremely well. With revenue increasing by 14.4% and EBITDA margins expanding by 60 basis points to 40.2%, it’s clear why this stock has been so consistent and stable. It beat estimates on both lines and even pays a small dividend.

The company’s recent $1.75 billion acquisition of Procare, a strategic addition to its early childhood education business, seems to be integrating smoothly and strengthening Roper’s position in that field.

Free cash flow for the quarter was also at $513 million, up 15% YOY. This level of cash generation provides Roper with tremendous flexibility for further acquisitions.

Guidance was increased across the board, including an 8% to 10% outlook for organic revenue growth.


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Source: Chart courtesy of GuruFocus.com

At this rate, I wouldn’t be surprised if Roper continues its decades-long track record of consistent returns. It’s definitely one of the tech stocks to buy.

CyberArk Software (CYBR)

Cyberark (CYBR) logo on a corporate building

Source: photobyphm / Shutterstock.com

Investors have good reason to feel optimistic about CyberArk (NASDAQ:CYBR). Its Q1 2024 results exceeded expectations on the sales front by nearly 3.9%. EPS also significantly outperformed with 75 cents, beating estimates by 48 cents. Subscription revenue soared 54% YOY to $621 million.

Even more promising, operations have become much more efficient. Non-GAAP operating income flipped from a $12.6 million loss to a $33 million profit. That shows a strong business model. Free cash flow was a healthy $67 million, too, up from just $4 million in the prior year quarter.

Management significantly revised guidance higher for the full year. Given over 90% of companies face identity breaches, CyberArk sits at the front of this crucial market with its unique platform. While the valuation is high now, the durable demand can’t be overlooked. Should this growth and expanding margins continue, I remain very bullish for the long run.

Analysts expect EPS to rise from $2 to $4.5 in the next two years and revenue to grow from $935 million to $1.4 billion. The stock is up 69% in the past year. The upside potential looks juicy as well.


Click to Enlarge

Source: Chart courtesy of GuruFocus.com

Cloudflare (NET)

In this photo illustration a Cloudflare Inc (NET) logo is seen displayed on a smartphone

Source: IgorGolovniov / Shutterstock.com

Cloudflare’s (NYSE:NET) is also another cybersecurity pick. The company has a huge market share across mid-sized websites. It provides cybersecurity, SEO and other related solutions all under one platform at much cheaper prices than if these websites were to have their own cybersecurity team.

Its Q1 revenue increased by 30.5%, and growth in large customers is accelerating. The company is making solid progress in serving more enterprises. Revenue growth from large customers came in at 67%, and it reported a record number of accounts with over $1 million added. The company also has a very robust 115% net retention rate.

Source: Chart courtesy of GuruFocus.com

However, the real significance lies in the stellar profitability metrics. It isn’t very profitable right now, but analysts expect EPS to rise from 61 cents to $9.75 from 2024 to 2033. Revenue is expected to rise from $1.7 billion to $14.6 billion in the same timeframe.

AvePoint (AVPT)

In this photo the Microsoft Office 365 logo is seen on a smartphone and a pc screen. AVPT stock, AVPT provides services for Microsoft (MSFT) products

Source: rafapress / Shutterstock.com

There is a lot to digest when reviewing AvePoint’s (NASDAQ:AVPT) performance in the first quarter. The company is a software vendor of SaaS solutions that migrates, manages and protects data in Microsoft 365. On the one hand, the company greatly surpassed expectations, with revenue increasing 25% YOY to $74.5 million and non-GAAP operating margins that went beyond the initial guidance. This higher-than-predicted revenue was fueled by strong demand for its data organization and security solutions as organizations prepare for AI integration.

Personally, I am cautiously optimistic. The opportunities that AI brings are immense, but risks remain for newer players in such a fast-moving space. Its success depends a lot on the success of generative AI and what Microsoft (NASDAQ:MSFT) is betting on right now.

EPS is still expected to almost double in the next two years, and revenue is growing at around 20% annually on average in the next five years. This gives me hope that the stock can capture a much higher premium in the years ahead.

On the date of publication, Omor Ibne Ehsan did not hold (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.

Omor Ibne Ehsan is a writer at InvestorPlace. He is a self-taught investor with a focus on growth and cyclical stocks that have strong fundamentals, value, and long-term potential. He also has an interest in high-risk, high-reward investments such as cryptocurrencies and penny stocks. You can follow him on LinkedIn.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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