3 tech stocks that could go parabolic

Investors love tech stocks. They represent a category that has been in solid growth mode for a long time, as well as the future of almost any industry. That pretty much guarantees growth, at least for the category. The hard part is choosing which stocks to buy.

One way to play this category is to buy shares of a technology-focused exchange-traded fund (ETF). These days, almost any broad ETF is sure to include a lot of tech stocks, so you’re covered even with a less tech-focused ETF.

Another way to invest in high-growth technology is to find early-stage technology companies that have massive potential. Airbnb (ABNB -0.59%), Global is Online (GLBE -2.05%)and Opendoor technologies (OPEN -7.41%) there are three great choices.

1. The technological way to travel

One could argue that the time has passed to say that Airbnb could be the next big thing. Not only did it not deliver the mind-blowing gains the market initially expected; in fact, it fell below its first day trading price. You have

There are several reasons why it is denied. And there are a few reasons why it could still grow.

First, what’s going wrong. The truth is, most things really do go well. Demonstrates solid growth despite a harsh environment; is adding hosts and guests; and it became very profitable. But growth is pretty low for a high-growth company. This is partly due to inflation and people cutting back on spending, which could translate into less travel. Or does it? Carnivalthe leading cruise line, is responding to feverish demand. Airbnb’s revenue rose 11% year over year in the second quarter. It’s strong, but not strong enough to please investors. It could just be a sign that travelers are using Airbnb for more regular use, as opposed to travelers saving up for a dream cruise.

The other major problem with Airbnb was nothing more than valuation concerns. So even though it went smoothly, investors recognized that it needed to grow to its formidable valuation. Airbnb’s stock has remained roughly flat over the past year, while its revenue and earnings have grown. It trades at a forward price-to-earnings (P/E) ratio of 29 and a price-to-sales (P/S) ratio of 9. Even those valuations aren’t cheap and imply that investors are still seeing it. as a high value company.

The opportunity is huge, and Airbnb is doing a good job of capitalizing on it. It has built the leading platform for vacation rentals and is making a bigger push for international locations where it is under-penetrated. Its guiding mission is “expanding beyond the core” and it goes into all kinds of travel-related listings like experiences and events.

Airbnb’s technology-based platform is growing in popularity and usage, and the stock is likely to explode soon enough.

2. Business-to-business e-commerce

Global-e has a unique e-commerce platform that serves small customers and business enterprises. It provides cross-border services for international e-commerce so that consumers across the globe can access the same nice pair of jeans or aged whiskey. It’s easy to install on a website and takes care of all the work: instant calculations for customs and a variety of shipping options, localized currency and many other features that make it easy for buyers to press the buy button.

It works with companies of all sizes, but has a client list of leading e-commerce retailers with a focus on luxury and brand names. Serves up labels you recognize and are likely to buy, such as Disney, Macy’sand sneakersand many that appeal to the most affluent buyers, such as luxury brands owned by LVMHone of his top partners. Management says it has a strong book of new clients and each quarter announces more, such as well-known brands Club Monaco, JOOP!, Clarks and Escada in Q2.

Inflationary pressure is being felt and growth has slowed in recent quarters. Revenue was up 26% year over year in Q2 and gross merchandise volume (GMV) was up 31%.

Global-e has a partnership with Shopifywhich offers it through the Shopify Market Pro program launched last year, and management expects this to bring in more revenue as more merchants join. It is guiding for sales growth in the second half of the year, with strong results from some “significant” new merchants set to join its platform, such as Victoria’s Secret.

It should also get a boost from higher spending once lower interest rates hit Americans’ pockets, and as growth accelerates, it could be a standout stock.

3. A better way to buy and sell homes

Opendoor has to be one of the worst performing stocks in years. It’s down 54% this year and 94% from its highs and trades at about $2 a share.

It offers a digital real estate platform and a buying business. Residential real estate has been one of the worst industries to be in given the high interest rates. So, although management sees a huge market opportunity, it hasn’t had much of a chance to capture market share. It went public in the middle of the pandemic and initially rose while interest rates fell to zero. But it was crushed when it reversed.

Things may start to change as interest rates fall, but it will take time. Housing data showed that home sales continued to fall in August, even as mortgage rates began to fall.

But when the market recovers, Opendoor is well positioned to move forward. It is in buying mode and purchased 4,771 homes in Q2, up 78% from last year. It ended the quarter with 1,793 homes under contract, 29% more than last year. Although revenue was down 24%, gross margin was up a full percentage point.

The Opendoor platform is easy to use and helps buyers and sellers match digitally. It also buys homes with quick cash offers and has agents for clients who need more human intervention. It aims to provide almost everything a home buyer or seller could need and plenty of data for accurate pricing and easy listings.

Opendoor is the riskiest stock on this list, but it also presents the highest risk-to-reward proposition.