2 Tech Stocks With Massive Growth Potential to Buy on Weakness

We’ve seen an impressive recovery since the pre-election lows for the major market averages, with the S&P-500 (SPY) up over 10% and the Nasdaq 100 (QQQ) up roughly 9% as of Wednesday’s close. However, most of the performance post-election has come from the more cyclical sectors, while stay-at-home stocks have taken a beating following the vaccine news…

The good news is that this shift from growth to value has left a few tech stocks trading at reasonable valuations, and two names are sporting industry-leading growth. In this article, we’ll cover two names that should be at the top of one’s shopping list if we do get a sharp correction in the general market. Let’s take a closer look below:

Snap Inc. (SNAP) and Netflix (NFLX) have little in common as they both hail from different industries within the vast tech sector, but both companies do share one trait: massive earnings growth. In SNAP’s case, the company just came off a blow-out Q3 report with average revenue per user [ARPU] coming in 20% above estimates at $2.73, and average daily users now sitting just shy of 249 million. This translated to 18% growth year-over-year in daily active users, suggesting that the adoption of the popular camera App is nowhere near over.

Snap Inc. (SNAP) and Netflix (NFLX) have little in common as they both hail from different industries within the vast tech sector, but both companies do share one trait: massive earnings growth. In SNAP’s case, the company just came off a blow-out Q3 report with average revenue per user [ARPU] coming in 20% above estimates at $2.73, and average daily users now sitting just shy of 249 million. This translated to 18% growth year-over-year in daily active users, suggesting that the adoption of the popular camera App is nowhere near over.

On the more critical headline numbers, revenue grew an incredible 52% year-over-year, translating to a 3500-basis point improvement sequentially (52% vs. 17%), and gross margin jumped 700 basis points year-over-year to 58%. These outstanding results were driven by increased spend from advertising partners, and media companies continue to see significant traction moving shows to Snapchat. On a monthly basis, over 50 million users are watching TV content on the platform each month. Given this sharp increase in gross margins and revenue, it’s looking like…

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