Stockchase-logo
Loading...
    Track Stocks Watchlist
    Top Picks Today
    =iconClose Home All Opinions Top Picks Stocks Experts Top Experts Panic-proof Top 100 Stocks Monthly gems News
    Watchlist Track Stocks
    Top Picks Today
    Home » Stock Lists

    3 Big Tech Stocks Making a Comeback

    Allan Tong Posted On June 13, 2023
    0
    0
    Shares
    • Share On Facebook
    • Tweet It

    big tech stocks

    How long big tech stocks leads the markets is an open question in mid-June. Tech was beaten so much last year, but it has been making up lost ground this year. The current craze in Generative AI and the plateauing of interest rates are also drivers. Lately, some big tech stocks have awoken from their slumber and are ringing the register among investors whose money keeps expanding these big tech stocks’ multiples. Can that last? We look at three names:

    Netflix Inc. (NFLX-Q)

    A year ago, NFLX shares were in the dumpster around $175. Today, they’re reaching $420. Blame the Covid hangover when viewers cancelled their subscriptions and went traveling. However, we now live in the post-post-Covid world where that backlash against streaming is facing its own reversal. One reason is the company’s crackdown on password sharing. The company reported last week that in late May immediately following the crackdown, Netflix enjoyed its “four single largest days” of new user sign-ups in the U.S. Those days marked marked the greatest increase in the four years that the company has been keeping track. These numbers even beat those during the first lockdowns of March and April 2020. Cancellations also happened, but lagged the additions. Netflix had warned subscribers that if they were sharing their passwords, they would have to add a member to their existing account and pay US$7.99 a month. Globally, Netflix saw 1.75 million more subs in Q1, up nearly 5% a year before, though that fell short of the street’s expectation of over 3 million.

    A second driver of growth has been the new ad tier. After six months, this new tier has attracted nearly 5 millions subs worldwide and “more than doubled” since early this year. About one in four new sign-ups elected the cheaper ad version of Netflix. It’s still early days, but these figures are moving in the right direction. The street reacted last week with two upgrades, including one price target jumping to $535. That may be optimistic, but the consensus is that Netflix has more room to run.

    A caveat is that the big tech stock trades at 45x PE, about 300% higher than a year ago and higher than Disney‘s 41x, though it’s nowhere near the 90x during NFLX stock’s Covid heights.

    SalesForce.com Inc. (CRM-N)

    CRM is another big tech stocks comeback story, rallying 20% in the past year, but 65% year-to-date after plunging to end 2022. Activist investors have been driving cost cutting to beef up profit margins rather than raise sales growth. The results: Q1 revenues topped estimates, operating margins improved and the company raised the July revenue forecast from $8.49 billion to $8.52 billion. Something is working. Add to this momentum, CRM throwing their hat into the Generative AI ring with Einstein and AI Cloud. The new tech can help enterprise clients craft emails, service briefings, case summaries and work orders.

    A caveat yet again is the PE, now 578x, though that’s more reasonable than 935x only three months ago. The market is clearly giving CRM stock a wider berth on its valuation, but it’s enough to make this a partial buy, rather than a full buy.

    Shopify Inc. (SHOP-T)

    Another tech giant that is rejuvenating these days is Shopify. It’s a great Canadian success story, but a victim of Covid, when shares peaked at levels 250% higher than today’s $86 shares. SHOP has rallied 83% so far this year and popped 5% to begin this week. It’s been in the penalty box for so long that the street is letting it play again. One popular measure that the company is undergoing is phasing out its fulfillment services to raise profits. E-commerce isn’t dead, as some analysts proclaimed, but taking a breather after years of lockdowns. Gross merchandise volume climbed 15% over the past year, monthly recurring revenue increased 10%, and overall revenue rose 25% to $1.5 billion.

    As with Salesforce and other big tech stocks, SHOP stock’s PE makes one pause, at 264x, above its historic average of 249x and its level 12 months ago. A cautious buy.

    0
    Shares
    • Share On Facebook
    • Tweet It




    Trending Now
    This Week's Stock Picks & BNN Top Picks Summary: MELI-Q, V-N and 20 Stock and 4 ETF Top Picks (May 02-08)
    Melisa R. H. May 9, 2025
    Weekly 52-Week Low (or 52-Week High): DPM-T, III-T, SOY-T, IPO-T and More 52-Week Highs and Lows (Apr 16-22)
    Melisa R. H. April 23, 2025
    Stocks rally ahead of Fed meeting
    Read Next

    Stocks rally ahead of Fed meeting

    • logo

      We’re fintech passionates that reinvest almost all our revenues into the development of Stockchase and Wealthica. We hope you enjoy Stockchase and join Premium!

    • Top Reviews

      • Questrade Review: Pros & Cons of Trading with Questrade Canada (2023)
        8.5
      • The Ugly Truth About Identity Theft – Free Credit Report
        7
      • Questrade vs Others | The Review Competitors Don’t Want you to Read (2023)
    • Popular Posts

      • This Week's Stock Picks & BNN Top Picks Summary: MELI-Q, V-N and 20 Stock and 4 ETF Top Picks (May 02-08)
      • Weekly 52-Week Low (or 52-Week High): DPM-T, III-T, SOY-T, IPO-T and More 52-Week Highs and Lows (Apr 16-22)
      • Most Anticipated Earnings: NGT-T, WCN-T and more Canadian Companies Reporting Earnings this Week (Apr 21-25)
    • Stock Lists

      • Unraveling 15 of the Best Natural Gas Stocks: A Canada-USA...
        November 10, 2023
      • 13 Recession-Proof Stocks for Portfolio Safety
        October 26, 2023
      • The Ultimate Top Drone Stocks List for Sky-High Returns...
        October 25, 2023
      • Top Hotel Stocks to Buy for your Growth Portfolio
        October 12, 2023
      • Which Brookfield Stock to Buy? BAM vs BN: the Inspiring...
        October 9, 2023



    • Stockchase neither recommends nor promotes any investment strategies.

      About us : Privacy & Terms : Contact us

    © Stockchase Inc.
    Press enter/return to begin your search