Tech stocks divide into older companies that generate consistent growth from mature technologies and younger companies that focus on forward-thinking technologies and long-term growth trends.
Rising inflation and higher interest rates have caused many investors to shift away from younger companies and into older blue-chip tech stocks as defensive plays in recent months.
Meta Platforms, the parent company of Facebook, Instagram, WhatsApp, and Oculus, is an excellent long-term investment in the digital advertising, augmented reality, and virtual reality markets.
Each month, 3.58 billion people use at least one of Meta’s apps or nearly half the world’s population. With such a large audience, Meta built one of the world’s leading digital advertising platforms. It grew despite antitrust investigations, fines, and whistleblower scandals.
Veeva Systems serves over 1,000 life science companies, including GlaxoSmithKline and Moderna, with cloud-based customer relationship management (CRM) software, data storage, and analytics.
Veeva’s platform assists these businesses in organizing and maintaining customer relationships. Moreover, they store and analyze data, and stay up to date on industry regulations and clinical trials. Veeva has no significant competitors in this niche market, steadily expanding as competition between substantial pharmaceutical and biotech companies increases.
Veeva’s market dominance allowed it to increase revenue at a compound annual growth rate (CAGR) of 29% from fiscal 2016 to 2021. Its adjusted net income increased at a CAGR of 45 percent during that time.
The majority of traditional cybersecurity firms offer their services through on-site appliances. However, those appliances require ongoing maintenance and can be costly to scale as a business grows.
CrowdStrike addresses these issues with Falcon, a cloud-native cybersecurity platform that eliminates the need for on-premises appliances. Falcon served 14,687 subscription customers in its most recent quarter. In fact, it was a nearly sixfold increase from only 2,516 subscription customers at the start of 2019.
CrowdStrike’s revenue increased by 93% in fiscal 2020 and 82% in fiscal 2021. In fiscal 2022, it expects to grow by 63 percent to 64 percent. Analysts predict that revenue will increase by another 40% in fiscal 2023. It also became profitable on an adjusted basis in fiscal 2021, with analysts forecasting 115 percent growth this year and 55 percent growth next year.