3 Under-the-Radar Tech Stocks to Watch After Explosive Q2 Earnings Results

The effects of the pandemic continue to accelerate the expansion of the digital economy. Growth trends in sectors like cloud computing, e-commerce, and financial technology are showing no signs of slowing anytime soon and also happen to be…

transforming daily life. This transformation has created or contributed to establishing several massive new businesses over the last decade, but there are plenty of small new businesses with promising futures too.

Three such businesses to put on your radar, especially after seeing their second-quarter 2021 earnings results, are Monday.com (NASDAQ:MNDY)Marqeta (NASDAQ:MQ), and Global-e (NASDAQ:GLBE). Let’s find out a bit more about these three under-the-radar tech stocks.

1. Monday.com: A new operating system for work

Monday.com can be classified as a cloud-based project and workflow management software offering, but it’s so much more than that. Its subscription service — billed as Work OS (operating system) — is a low-code software development platform that makes it easy for those with little to no coding background to build their own applications.

The inherent flexibility of its offering to customize workplace tools for whatever an organization or business team needs is winning over lots of fans — both large and small. Both Salesforce.com and Zoom Video Communications made sizable investments in the IPO in early June. Then during its Q2 earnings update, Monday.com said customers spending at least $50,000 per year increased to 470, compared to only 144 the year prior. And to build on its momentum, a new free-to-use tier with a two-user limit was added during the spring months to get smaller businesses to try out the platform.

As a result, Q2 revenue was up 94% year over year to $70.6 million, an acceleration from the 85% pace set during the first quarter. A full-year 2021 revenue outlook was provided too, with management calling for at least 74% growth over 2020 to $280 million to $282 million. Not bad at all for this workflow management software niche.

Share prices of Monday.com have exploded higher since the IPO on the news, nearly doubling since June and currently valuing the company at a market cap of $15.4 billion. Clearly, with Monday.com hauling in just a small fraction of that valuation in annual sales and just starting to turn the corner on positive free cash flow, shareholders are incredibly optimistic about this upstart’s long-term prospects.

But with project management software leader Atlassian (market cap of over $84 billion) providing a preview of what could be in store in a few years down the road, and with Monday.com’s $875 million in cash and equivalents creating a massive war chest to promote expansion, the optimism isn’t misplaced.

2. Marqeta: The back-end tech behind lots of fintech services

For any shareholder with a substantial amount of investable net worth in fintech leaders like Square, Marqeta is an intriguing story. The cloud software company is the behind-the-scenes player that powers all sorts of virtual banking, online lending, and payments services. For example, when consumers open a buy now, pay later (BNPL) account (like at Afterpay, which is being acquired by Square), a virtual credit card is issued. Marqeta’s technology is responsible for that type of modern credit issuance.

The company counts a number of fintech businesses as customers (including Square and BNPL peer Affirm) as well as banking industry incumbents like…

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