From Six Figures to Seven: 3 Tech Stocks Set to Make Millionaires
The Nasdaq-100 Technology Index has seen an incredible surge since 2019, rising more than 82%. Most of this recent increas. has been tied to enthusiasm around the AI boom. With a wide range of stocks seeing consistent growth, some top-heavy leadership will likely remain for some time.
Of course, the Nasdaq, and other indices, are likely to continue to see these dynamics play out. But that doesn’t mean investors should overlook some hidden gems within the technology space that are worth consideration.
Three of the top tech stocks could mint new millionaires over time. For those willing to be patient, these companies’ strong business models and exposure to high-growth sectors warrants attention.
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Let’s dive in.
Shopify (SHOP)
Source: Burdun Iliya / Shutterstock.com
First on the list is e-commerce giant Shopify (NYSE:SHOP). The company impressed a lot of investors and analysts with its recent earnings report. Shopify reported an impressive 34 cents in adjusted earnings per share. This figure is much improved from the 7 cents per share the company reported during the same period last year.
Total revenues rose 23.6% year over year (YOY) due to its Subscription Solutions. Also, Merchant Solution revenues grew by 21.3%, alongside with the Gross Merchandise Volume by 23%.
Moreover, adjusted operating income reached $396 million in the same quarter in 2023. By December 31, 2023, SHOP proudly announced a $5 billion cash buffer, a bit higher than September 2023’s $4.92 billion.
The company specializes in providing a robust tech platform connecting diverse merchants to millions of shoppers. Further, Shopify offers more growth potential than many of its marketplace counterparts. As the company’s profit margins continue to rise, and earnings per share continue to grow in lockstep, I think there’s a fundamental growth thesis underpinning this stock that’s worth a look. As far as long-term growth stocks in the tech sector are concerned, Shopify remains among my top picks.
Coinbase (COIN)
Source: Sergei Elagin / Shutterstock.com
Since its February 15 earnings report, Coinbase Global (NASDAQ:COIN) surged an impressive 41% over the last month. Much of this gain has to do with a continued surge in digital assets. And, these appear to be headed higher once again after a brief dip.
Options activity has driven significant outsized interest in COIN, as in many other high-flying tech stocks seen as volatile opportunities. Despite the stock trading at $240.37 on March 15, puts that were way out of the money continued to command high premiums. This suggests some bears are taking outsized positions on this stock dropping much further from here.
That said, if this rally picks up steam, and transactions continue to surge on Coinbase’s platform, this is a stock with a fundamental valuation that could prove to be cheap. Notably, Coinbase is increasingly focusing more on subscriptions and services, which led to a $1.5 billion revenue in 2023. Offerings include staking, custody, and stablecoins, aiming for crypto’s broader utility.
Coinbase’s success hinges on cryptocurrency market trends. Increased capital inflows and rising asset prices attract more users and transaction volumes, benefiting Coinbase. Shareholders must brace for financial volatility amid market fluctuations. Despite challenges, COIN innovates and expands globally, aiming for consistent profitability irrespective of market conditions.
Oracle (ORCL)
Source: Jonathan Weiss / Shutterstock.com
Oracle’s (NYSE:ORCL) stock surged nearly 12% to a record $127.54 following better-than-expected fiscal Q3 earnings. Adjusted EPS beat estimates at $1.41, while revenue slightly missed expectations at $13.28 billion.
Oracle’s cloud services and license support segment, its primary business, experienced a 12% sales surge to $9.96 billion, surpassing analyst forecasts. Deutsche Bank raised its Oracle shares price target to $150 from $135. It cited CEO Safra Catz’s reaffirmed fiscal 2026 guidance and robust cloud infrastructure results. Also, UBS analysts increased their Oracle shares price target to $150 from $130. This proves as an emphatic optimism about the top-line improvement, OCI growth, AI backlog, and potential benefits from an AI-driven cloud migration in 2024/2025.
With a forward price-earnings ratio of 20-times and a promising growth outlook, ORCL stock represents one of the few true value plays in the technology sector. Chairman Larry Ellison noted significant demand is expected to continue, as substantial cloud contracts are awarded to this firm. Analysts predict a robust 14% annual growth in adjusted earnings, potentially leading to sustained stock growth.
Oracle is an often-overlooked tech stock, but one with a valuation that appears to good to ignore right now.
On the date of publication, Chris MacDonald did not have (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.
Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.
More From InvestorPlace
The #1 AI Investment Might Be This Company You’ve Never Heard Of
Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In.
It doesn’t matter if you have $500 or $5 million. Do this now.
The post From Six Figures to Seven: 3 Tech Stocks Set to Make Millionaires appeared first on InvestorPlace.
