Last week was a difficult week for bull stocks. Many of the fastest growing tech companies in the market have been laid off, especially in the second half of the week. The pullback may be primarily a function of some profit taking after many of these stocks soared since the bottom of the coronavirus market crash in March.
Certainly, many of these stocks are due to corrections. After all, stocks cannot tend to rise forever. Eventually, they become overvalued. As a result, the decline of these stocks was largely due to the public. But a drop can also lead to some stocks being oversold.
Three great bulls that look like good buying opportunities following last week’s sell-off are cloud database companies MongoDB (NASDAQ: MDB), a platform provider for analysis and monitoring Datadog (NASDAQ: DDOG)and remote healthcare and virtual care companies Teladoc Health (NYSE: TDOC) and Livongo health (NASDAQ: LVGO).
MongoDB: Discount 18%
After this week’s sell-off, MongoDB shares are now down 18% from their all-time high, giving today’s investors a much better entry point than many others have. Pay for stocks this summer.
MongoDB was able to continue to grow its business rapidly – even during a pandemic. The company’s revenue for the quarter ending April 30, 2020 (the first quarter of MongoDB’s fiscal year 2021), was up 46 percent year-on-year. This is notably an acceleration compared to the 44% growth in the previous quarter. The company even raised the low of its FY2021 full-year revenue outlook to $ 10 million, the guide for FY2021 revenue to between $ 520 million and $ 530 million.
“Although the impact from COVID-19 will take longer than we originally expected at the beginning of this fiscal year, we are seeing clear signs that the current environment is,” said the CEO of MongoDB. is reinforcing the long-term trend towards digital transformation and cloud migration. Dev Ittycheria in the company’s first quarter financial earnings statement. “MongoDB is a clear beneficiary of these trends, and we will continue to invest to take full advantage of this market opportunity.”
Datadog: Discount 23%
Shares of Datadog are down 23% since hitting a high of $ 98.99 earlier this month. However, Datadog’s basic business was booming. While second-quarter revenue growth slowed down from the 87% growth in Q1, it was still up 68% year-on-year.
Corporate clients with contracts that boast recurring annual sales of $ 100,000 or more as of the end of Datadog’s second quarter grew significantly by 71% from last year, at 1,015.
Going forward, the company has a full-year outlook with sales of between $ 566 million and $ 572 million. Analysts had expected 2020 revenue of $ 564 million.
Livongo Health and Teladoc: Discount 19% and 23% respectively
Finally, there are Livongo Health and Teladoc – two companies whose shares plunged last week after they announced that they plan to build and consolidate their businesses – a move that will make them the leader. Unquestionable leadership in remote and virtual healthcare.
The two companies estimate the merger will bring in total revenue of $ 100 million by the end of the second year after the end of the merger. In addition, they forecast aggregate revenue of $ 500 million on a run-speed basis by 2025. Considering the two companies only generate $ 923 million in annual revenue together now, here’s a forecast. pretty good.
Investors buying into these telehealth technology companies are entering an incredible growth story. Livongo Health, a company that specializes in virtual care solutions for people with chronic illnesses, saw second-quarter revenue grow 125 percent year-on-year to $ 91.9 million. Telehealth platform provider Teladoc saw its second quarter revenue grow 85% year over year.
Of course, there’s always the risk that the merger doesn’t end. But even as individual organizations, both Livongo Health and Teladoc Health are in excellent competitive positions – and their market shares are down 19% and 23% respectively from all-time highs.
Expect a lot of volatility ahead
While these stocks look attractive today, that doesn’t mean the prices they see on Friday will be the lowest they are trading from now. Growth stocks can be very volatile as investors continually try to reevaluate the stock’s present value today based on wild forecasts of future growth. Small changes in the psychology of these companies’ growth trajectories can cause significant fluctuations in their prices.
However, over the past five years and beyond, these fast-growing tech companies will likely continue to gain market share and improve their customer availability, turning them into the key technologies of the future. and finally, the investors reward. More importantly, their scalable business models are likely to generate significant profits in the long run. But investors will need to be patient as these companies are still investing heavily in the big growth opportunities ahead.