Futurescape: Betting Big on These 3 Next-Gen Tech Stocks
In an era of rapid technological advancement and groundbreaking innovations, the stock market is constantly abuzz with opportunities and potential pitfalls. Amidst this ever-evolving landscape, three companies stand out as beacons of forward-thinking progress and visionary leadership.
With strategic partnerships, the first stock is changing the game for real-time 3D development. Conversely, the second leverages a versatile manufacturing approach. Meanwhile, the third one is pioneering gene-based medicine with a diverse portfolio.
Let’s delve into the fundamentals of three next-gen tech stocks, exploring their strategies, innovations, and market potential.
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Unity (U)
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Unity (NYSE:U) is poised for significant long-term benefits through its next-gen technological advancements.
First, Unity’s partnership with Apple (NASDAQ:AAPL) at WWDC has generated substantial interest in the PolySpatial platform. This innovative technology represents a compelling reason for developers to choose Unity as their primary platform for real-time 3D development. The benefit lies in attracting a broader developer base, which can increase the adoption of Unity’s platform.
Similarly, Unity Cloud aims to simplify the go-to-market process by connecting all of Unity’s services to its product. Therefore, what used to require physical meetings and travel will now be accomplished with a simple click inside the editor. And so, this ease of use is expected to drive increased adoption among developers and companies.
Financially, the integration of Unity Cloud will boost Unity’s subscription revenue and drive consumption revenue. Additionally, Unity’s strategic partnerships with companies like Weta, Ziva, and Speedtree will continue to attract artists to its platform, resulting in net new revenue and SaaS revenue.
Furthermore, Unity is gaining significant traction in the market with its Digital Twins technology. The company’s strategic decision to prioritize high-margin solutions with repeatable and ratable revenue streams is a game-changer. So, by de-emphasizing lower-margin professional services and relying on strategic partners like Capgemini (OTCMKTS:CAPMF) and Booz (NYSE:BAH), Unity is enhancing its bottom-line profitability.
Finally, Unity’s synergy between Unity Create and Grow is a strategic advantage. The deep integration of advertising, mediation, publishing, and user acquisition tools inside the editor provides a seamless experience for customers. This integrated approach enables Unity to be the go-to platform for building and monetizing products.
Proto Labs (PRLB)
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Proto Labs (NYSE:PRLB) has a distinct advantage in providing a broad spectrum of manufacturing solutions. This includes both its internal digital factories and a network of manufacturing partners.
As a result, these combined capabilities allow Proto Labs to cater to an extensive range of customer needs. Whether clients are looking for rapid turnaround times or are more price-sensitive, Proto Labs can accommodate them. PRLB makes it a go-to choice for various industries and applications.
Financially, the company is enjoying remarkable growth in network revenue, with an astounding 80% year-over-year (YOY) increase (Q2 2023). This spike signifies the appeal of its network offering, which extends the company’s capabilities and pricing options. Proto Labs secures its position as a preferred partner for clients with diverse requirements by tapping into a broader range of manufacturing capacities and lead time choices.
PRLB strategically invests in research and development to expand its customer offering. A recent example is the launch of accelerated anodizing and chromate plating within its digital factory CNC machining service. This innovation represents a significant advancement in the industry. It enables Proto Labs to deliver fully anodized or plated CNC machine parts with unmatched speed and precision.
In addition to innovation, Proto Labs focuses on efficient cost management. The company maintains world-class lead times while optimizing factory costs. This includes aligning staffing levels with production volumes, leading to a 9% YOY reduction in manufacturing headcount. The approach ensures it can provide cost-effective solutions without compromising quality or delivery times.
Finally, Proto Labs’ acquisition of Hubs in 2021 has expanded its customer offering. The combination of factory and network fulfillment avenues has proven highly effective. Therefore, this integrated approach allows Proto Labs to provide comprehensive solutions. Customers increasingly embrace this expanded service.
Crispr (CRSP)
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Crispr (NASDAQ:CRSP) has an innovative approach to gene-based medicine. And its strategic pipeline across various therapeutic areas places it at the forefront of a healthcare revolution.
In detail, Crispr’s gene-editing technology, with a broad pipeline of ex vivo and in vivo programs, spans four key franchises. They include hemoglobinopathies, immuno-oncology, regenerative medicine, and in vivo approaches. Therefore, it increases its market potential and reduces the risk associated with dependency on a single therapeutic area.
Notably, Crispr has made history with the first Marketing Authorization Application (MAA) filing for a CRISPR-edited product known as exagamglogene autotemcel (exa-cel) in β-thalassemia and sickle cell disease. If approved, exa-cel could offer a functional cure for over 30,000 patients in the U.S. and E.U. This groundbreaking achievement reflects the company’s leadership in translating gene-editing technology into real-world therapies.
Statistically, the data from exa-cel’s trials is highly promising. In transfusion-dependent thalassemia, 42 out of 44 patients stopped red blood cell transfusions. And in sickle cell disease, all 31 patients remained VOC-free for considerable durations. Such compelling results signify the potential of exa-cel and instill confidence in the broader application of Crispr’s technology.
Finally, Crispr strategically focuses on in vivo gene disruption, addressing many severe monogenic diseases. For example, the company aims to establish a leading in vivo gene correction platform, initially targeting the liver. Crispr is well-prepared to address a broad spectrum of diseases with a portfolio that includes various targets and indications. Its wholly-owned portfolio also provides opportunities for internal development or partnerships.
On the date of publication, Yiannis Zourmpanos did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Yiannis Zourmpanos is the founder of Yiazou Capital Research, a stock-market research platform designed to elevate the due diligence process through in-depth business analysis.
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