It is no surprise that the markets are displaying volatility. Inflation is the worst it has been in years, the federal research has announced that it will start to raise interest rates next year, a new covid variant has caused stocks to sell off once again.
While the Nasdaq Composite is still within 10% of all-time highs, the broader tech market is really telling us a different story. According to a recent article in Forbes, If you take the Nasdaq Composite and exclude the Nasdaq 100 companies, the unweighted average distance from the 52-week high on December 17th was 43%. That is a big drop when you look at it compared to the broader index.
A big part of this is because companies like Apple, Microsoft, Google, and other mega-caps have an outsized weighting on the index and have held up quite well as they become a flight to safety.
What this means is that some great tech stocks have been pulled down with the broader market and thrown out with the bath water and that’s exactly what I want to look at today.
Everything from transportation to grocery store checkout to even some of the most fundamental aspects of running a business, there’s technology in the works to make it run all by itself.
But it’s that last one that I want to really focus on. It’s all thanks to a pioneering platform that can monitor itself, secure itself, and even repair itself when the system encounters performance failures.
These features will give its manufacturer a huge edge in the $46 billion database management market.
That same manufacturer has proven that they’re a far better bet than the broader market to the tune of 77%.
Today, I want to rewind to two of our conversations from last March and in June because I’ve discovered a hidden connection that could make us a lot of money.
Let’s start with our chat back on March 9 wherein I mentioned that we’re seeing a boom in Internet satellites needed to provide Web access to half the world’s 7 billion people.
Then on June 29, I revealed one of my favorite plays in the $140 billion cybersecurity market.
These are two major trends taken separately, but together, there’s a problem (and a highly lucrative solution.)
“In space, no one can hear cyber security professionals scream” – That was the verdict from a UK online journal called The Register in their September 2 headline.
For all the wonderous capabilities of our modern communication satellite network, they also present an appealing target to the cybercriminals of today.
Here on Earth, it’s not disaster that I’m predicting. No, instead I can hear cash registers ringing. See, that cyber leader I noted a moment ago is absolutely crushing the market by crushing this problem.
In fact, it’s up 28% since our June cyber talk. That beats the S&P 500 during the period by a stunning 460%.
Today, I want to show why this great company is set up to double its earnings, and its stock price along with it, in as little as 19 months…
It’s not every day you talk about a company hitting a trillion-dollar valuation, especially since there are currently only six that are publicly traded. But that is changing rapidly and after digging through dozens of large and growing companies I’ve found one that has a good chance of doing it, which means they could potentially grow 300% without having to acquire another company.
So how do they get to a trillion-dollar valuation? In their most recent investor day presentation, they expect annual revenue to reach $50 billion in 2026, more than double what they currently bring in. If you have some multiple expansion a little above median and a doubling of revenue, that puts you squarely at $1 trillion.
While this company has only been public since 2004, it has made an incredible run, up over 6000% since it joined the Nasdaq. Now, you may be thinking, its best years are behind it, but that is far from the truth. The CEO and Founder is an incredible allocator, manager, and integrator, and has shown time and time again that the right acquisition can help fuel growth in a larger organization.
While that 6000% is definitely a lot, the run is not over yet.
They’ve made their largest acquisition yet of a high growth communications platform, and are seeing accelerating revenue growth even with $20B in annual revenue already.
A Special Note from Michael: Volatility in the market has been big news recently. That’s why It’s important to take notice of any opportunity to play that volatility to our advantage. Luckily for us, Mark Sebastian is an expert “Volatility Trader”, and I had to let you know about his new trading method, that could deliver 1000% returns in less than 30 days. And it only takes trades of less than $100. You can get the full story right here.
Dear Strategic Tech Investor Reader,
Greetings from Zoom Town USA.
It’s a greeting that could apply just as well from Scottsdale AZ, San Diego, or from my very own Silicon Valley home office.
With the delta variant on the rise, many workplaces are cancelling plans to bring their employees back into the office. Along with that, scores of them are adopting a hybrid model in which employees come to the office only a few days a week and work remotely the rest of the time.
The company I have in mind for you today is wise to this trend. That’s why they made a $27.7 billion buyout that will give it the inside edge in playing this new paradigm.
One of the least talked about lessons from the pandemic has been the importance of good data.
After all, the federal Centers for Disease Control and the majority of states were making their decisions about mask mandates and re-openings based on statistics that were made available to the public.
And then there’s the mountain of data compiled by a group of researchers in Finland led by geneticist Andrea Ganna. Over the last 15 months, he’s compiled statistics pulled from more than 3,300 researchers in 25 countries. We’re talking stats about millions of people, including more than 125,000 Covid-19 patients.
All of which brings me around to one of my favorite tech-investing topics – cashing in on the Big Data sector that will be worth at least $229.4 billion in the next couple of years.
The company I have in mind for you is a leader in the field and recently scored an 80% growth in earnings and has plenty of upside ahead…
Everyone loves Microsoft and its latest earnings report shows why it deserves a spot in everyone’s portfolio. Revenue came in at $46.2 billion an increase of 21% year over year and net income was $16.5 billion an increase of 47% year-over-year. Even more impressive is that those two numbers don’t tell the whole story as older products like Windows are not seeing any growth at all, hiding big growth divisions. Azure, its cloud product grew 51% year-over-year and several other businesses saw similar growth profiles.
Microsoft is really firing on all cylinders and that’s why I want to tell you about a company you can buy for less than $10 that is riding Microsoft’s coattails…
I’ve been listening to a lot of earnings calls these last few weeks and I’ve noticed one major key trend. Datacenter businesses are booming. Microsoft’s datacenter business, Azure was up 50% year over year, AWS was up 37%, and now doing almost $15 billion in quarterly revenue. Even IBM reported 29% revenue growth for its cloud and cognitive software division.