Technology is changing the world as we know it before our very eyes. E-commerce is wiping out traditional brick-and-mortar retail, esports are taking the concept of traditional sports and bringing it into the future, and 5G looks set to be the most disruptive technology of our lifetimes. With that in mind, eagle-eyed investors are looking to tech stocks for their next big gain, and small-cap stocks look to be the cradle of creation in that area.
For investors who want to get in on tech stocks and are after returns, and we mean serious returns, often the idea of investing in the big hitters like Amazon (NASDAQ:AMZN) and Alphabet (NASDAQ:GOOGL) just doesn’t seem like it’s worth it. That’s why we’ve picked out three low-cost, high-potential tech stocks that could set your portfolio up for as big a future as the industries you invest in. Let’s take a look.
PagerDuty Inc (NYSE:PD)
PagerDuty is a San Francisco-based cloud computing company that produces a SaaS incident response platform for IT departments. The company was founded in Toronto in 2019 and has been hugely successful in raising investment from venture funds that were quick to notice the potential of this stock. As of 2018, PagerDuty had raised a whopping $170 million USD in funding and went public on the New York Stock Exchange in April of this year to exceptional fanfare.
The IPO was a huge success, as PD stock popped nearly 60% on its debut. PagerDuty’s software is now used by a whopping 11,000 businesses, including The Gap (NYSE:GPS) and Netflix (NASDAQ:NFLX), while revenue jumped 48% last year to $117.8 million USD. The company is a part of the DevOps market, which is expected to rocket in valuation to $10.3 billion USD a year by 2023, up from $3.4 billion USD last year. PD stock’s current price is $26.36.
Yext Inc (NYSE:YEXT)
Yext is a New York-based firm that provides software and digital services that allow businesses to manage their presence on search engines and across the web. The company’s services have some pretty big advocates, with Denny’s (NASDAQ:DENN) CMO John Dillion describing Yext’s platform as “invaluable,” while Roots (TSX:ROOT) Chief of Commerce James Connell said, “Yext has saved us countless hours by giving us the opportunity to manage hundreds of listings from one central hub.”
Like PagerDuty, Yext hasn’t been public for too long, but its IPO in 2017 also drew massive attention. Yext stock popped 25% on its debut, trading as high as $14.25 by the close of business on day one after floating for $11. SEO technology is a crucial part of brand management in the tech age, and every business under the sun realizes that. With clients ranging from Airfrance to Arbys, and Taco Bell to T-Mobile (NASDAQ:TMUS), Yext’s current price of $16.35 looks like a good watch just as the tech stock launches its new Yext Answers service.
TeraGo Inc (TSX:TGO)
We couldn’t do a list of tech stocks with big potential without mentioning at least one 5G-focused company. 5G is the next generation of mobile technology, and within a few short years, it will completely change the world around us. Technology that previously only existed in Orwellian fantasies is fast becoming a reality, and TeraGo is one small-cap stock riding that wave of new capabilities.
TeraGo owns a national spectrum portfolio of exclusive 24GHz and 38GHz wide-area spectrum licenses, which are crucial to the actual implementation of 5G technology. As well as this, it also manages over 3,000 cloud workloads and operates five data centers in some of Canada’s biggest cities. The all-encompassing capabilities of 5G technology cannot be understated, and with a tiny market cap of around $200 million USD, TeraGo is somewhat of a hidden gem among 5G stocks. This tech stock is currently trading for $8.72.
While the three companies mentioned above appear to be trailblazers in their individual fields, the market for any innovative technology is becoming increasingly condensed as forward-thinkers find a way to take one idea and simply do things better—such is the nature of technological developments. That means that if investing in stocks like these, one has to act fast and get their timing just right to sell at the right time for those sought-after returns. Happy hunting!
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