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Alberto Abaterusso
Alberto Abaterusso
Articles (2376) 

3 Technology Growth Stocks to Consider

Quarterly revenue and earnings have grown substantially

July 03, 2020 | About:

Tech growth investors may be interested in the following stocks as they have grown their quarterly revenue and net income substantially on a year-over-year basis.

Zoom Video Communications

The first company investors may be interested in is Zoom Video Communications Inc. (NASDAQ:ZM), a San Jose, California-based provider of a platform for video-first communication services worldwide.

The company’s revenue grew 169% year over year to $328.17 million as of the first quarter, up from $122 million in the prior-year quarter. The net income was $27.08 million in the first quarter of 2020, increasing dramatically from $2.21 million.

The stock traded at $261.74 per share at close on July 2 for a market capitalization of $73.84 billion and a 52-week range of $59.54 to $263.8. The share price is up nearly 190% since last year.

Zoom Video Communications does not pay dividends.

Wall Street sell-side analysts have issued a hold recommendation rating and established an average target price of $216.06 per share.

The company's top fund holder is Morgan Stanley with 4.91% of shares outstanding, followed by Hillhouse Capital Management Ltd. with 3.92% and Baillie Gifford & Co. with 2.57%.

Dynatrace

The second company that meets the criteria is Dynatrace Inc. (NYSE:DT), a Waltham, Massachusetts-based provider of a software intelligence platform for running enterprise cloud applications.

The company’s revenue came in at $150.6 million in the most recent quarter, which ended on March 30, growing 30% year over year. Total revenue was $116.2 million in the year-ago quarter. The quarterly net income of $46.7 million marked a positive switch from a net loss of $30.6 million recorded last year.

The stock closed at $42.35 on July 2 for a market capitalization of $11.89 billion and a 52-week range of $17.05 to $44.16. Year to date, the share price is up 67%.

Dynatrace does not pay dividends.

Wall Street sell-side analysts recommend a buy rating and an average share price target of $39.38 for this stock.

With 52.04% of shares outstanding, Thoma Bravo LLC is the company's top fund holder, followed by Philippe Laffont with 4.09% and Vanguard Group Inc. with 3.45%.

Huya

The third company that qualifies is Huya Inc. (NYSE:HUYA), a Chinese operator of platforms where games are live streamed for users.

The company recorded a nearly 48% year-over-year increase in its quarterly revenue to 2.41 billion yuan ($341 million) as of first quarter of 2020, up from 1.63 billion yuan for the same quarter of 2019. The net income also increased by almost 170% to 171.2 million yuan, up from 63.5 million yuan for the same quarter of 2019.

The stock price traded at $19.45 per share at close on July 2 for a market capitalization of $4.28 billion and a 52-week range of $11.78 to $28.2. Over the past year, the share price has lost 25%.

Huya does not pay dividends.

Wall Street sell-side analysts recommend a buy rating for this stock with an average target price of $157.94 per share.

The company's top fundholder is Capital World Investors with 3.55% of shares outstanding, followed by Jim Simons with 2.35% and Morgan Stanley with 1.98%.

Disclosure: I have no positions in any securities mentioned in this article.

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About the author:

Alberto Abaterusso
I am a contributor at GuruFocus. I primarily write about how to pick potential value stocks. Gold, silver and precious metals mining industries is also my cup of tea. My articles have also been widely linked by popular sites, including MarketWatch, Financial Times, 24hGold, Investopedia, Financial.org, CNBS, MSN Money, Zachs, Reuters and others. I hold a Master\\\'s Degree in Business Administration from Università degli Studi di Bari (Italy), Aldo Moro. I am based in The Netherlands.

You can follow me on Twitter at https://twitter.com/AAbaterusso

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