Investors focused on tech growth stocks may be interested in the following businesses, as their quarterly revenue and net income have advanced strongly on a year-over-year basis.
JD.com
The first stock which tech growth investors may be interested in is JD.com Inc. (JD, Financial).
Based in Beijing, JD.com is an e-commerce company.
The company saw its quarterly revenue grow by nearly 35% year over year to $25.58 billion as of the quarter ended September 2020, up from $18.96 billion in the same quarter of the previous year.
JD.com recorded net income of $1.11 billion for the third quarter, advancing dramatically from the net income of $86 million recorded for the same quarter in 2019.
The stock traded at $96.64 per share at close on Feb. 5, following a 141.66% growth over the past year, for a market capitalization of $149.78 billion and a 52-week range of $32.70 to $101.68.
JD.com does not pay dividends.
GuruFocus assigned a rating of 7 out of 10 for the company's financial strength and 4 out of 10 for its profitability.
As of February, Wall Street has issued 10 strong buys, 22 buys, four holds and only one sell rating for the stock. The average target price is $105.64 per share.
Chase Coleman (Trades, Portfolio) is the leader among the top fund holders of the company with 3.32% of shares outstanding, followed by BlackRock Inc. with 2.66% and Vanguard Group Inc. with 1.97%.
Zoom Video Communications
The second stock that tech growth investors may be interested in is Zoom Video Communications Inc. (ZM, Financial).
Based in San Jose, California, Zoom Video Communications is a provider of a platform for video-first communication services worldwide.
Zoom Video saw its quarterly revenue grow by more than 4.5-fold year over year to $777.2 million as of the quarter ended October 2020, up from $166.6 million for the prior-year quarter.
The company recorded net income of $198.64 million for the quarter that ended in October 2020, for a significant improvement from the net income of $2.21 million recorded for the same quarter in 2019.
The stock was trading at $419.59 per share at close on Feb. 5, after a 373.36% increase over the past year, for a market capitalization of $122.47 billion and a 52-week range of $86.52 to $588.84.
Zoom Video Communications is currently not paying dividends.
GuruFocus assigned a rating of 7 out of 10 for the company's financial strength and of 2 out of 10 for the profitability.
As of January, Wall Street issued six strong buy recommendations, five buys, 16 holds and only one underperform rating for an average target price of $469.80 per share.
Morgan Stanley is the leader among the top fund holders of the company as it owns 5.08% of shares outstanding, followed by Vanguard Group with 3.81% and BlackRock with 3.67%.
MercadoLibre
The third company that tech growth investors may be interested in is MercadoLibre Inc. (MELI, Financial).
Based in Buenos Aires, Argentina, MercadoLibre operates a platform for e-commerce in South America.
MercadoLibre recorded revenue of $1.12 billion for the quarter that ended in September 2020, which represents an 85.7% increase from $603.03 million in the same quarter in 2019.
The company recorded net income of $15.04 million, representing a positive shift from the net loss of $146.08 million recorded in the prior-year quarter.
The stock traded at around $1,918.13 per share at close on Feb. 5 after a 196.91% increase over the past year, which determined a market capitalization of $95.66 billion and a 52-week range of $422.22 to $2,020.
MercadoLibre is currently not paying dividends. The last quarterly cash dividend of 15 cents per common share was distributed in January 2018.
GuruFocus assigned a rating of 6 out of 10 for the company's financial strength and of 8 out of 10 for the profitability.
As of February, Wall Street has issued two strong buys, four buys and nine hold ratings for an average target price of $1,796 per share.
Amid the top fund holders of the company, Baillie Gifford & Co. is the leader with 9.53% of shares outstanding. It is followed by Capital Research Global Investors with 5.82% of shares outstanding and Capital World Investors with 4.85%.
Disclosure: I have no positions in any securities mentioned.
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