With a track record of solid revenue growth, the high growth tech stocks on our list seem to be worth holding onto
SmallCapPower | April 20, 2017: Today we have identified some high growth tech stocks that analysts expect to grow revenues by 25% or more over the next twelve months (NTM). Companies such as Amazon.com are heavily expanding globally to acquire online retail market share, and Baidu has been touted as the ‘Chinese Google’ by analysts, operating in the fastest-growing and most heavily-populated country. What’s more, as technology continues to advance, the companies on our list are bound to benefit from data analytics and artificial intelligence to not only grow revenues but improve operating margins.
Facebook Inc. (NASDAQ:FB) – $140.96
Online Services
Facebook, Inc. is focused on building products that enable people to connect and share through mobile devices, personal computers and other surfaces. The Company’s products include Facebook, Instagram, Messenger, WhatsApp and Oculus. Facebook enables people to connect, share, discover and communicate with each other on mobile devices and personal computers. Instagram enables people to take photos or videos, customize them with filter effects, and share them with friends and followers in a photo feed or send them directly to friends. Messenger allows communicating with people and businesses alike across a range of platforms and devices. WhatsApp Messenger is a messaging application that is used by people around the world and is available on a range of mobile platforms. Its Oculus virtual reality technology and content platform offers products that allow people to enter an interactive environment to play games, consume content and connect with others.
- Market Cap: $544.9 billion
- Revenue Growth (LTM/LTM-1): 54%
- Expected Revenue Growth (NTM/LTM): 50%
- YTD Total Return: 22.5%
Alibaba Group Holding Ltd. (NYSE:BABA) – $111.23
Online Services
Alibaba Group Holding Limited is a holding company engaged in online and mobile commerce through offering of products, services and technology that enable merchants, brands and other businesses to transform the way they market, sell and operate in the People’s Republic of China (the PRC or China) and internationally. It operates through the provision of online and mobile commerce and related services segment. The Company provides retail and wholesale marketplaces available through both personal computer and mobile interfaces in the PRC and internationally. Retail marketplaces and services operated by the Company include the China online shopping destination (Taobao Marketplace); the China brands and retail platform (Tmall); the China group buying site that offers products by aggregating demand from consumers through limited time discounted sales (Juhuasuan), and the global consumer marketplace targeting consumers (AliExpress).
- Market Cap: $368.1 billion
- Revenue Growth (LTM/LTM-1): 44%
- Expected Revenue Growth (NTM/LTM): 42%
- YTD Total Return: 26.7%
Amazon.com Inc. (NASDAQ:AMZN) – $903.78
Online retailing
Amazon.com, Inc. offers a range of products and services through its Websites. The Company operates through three segments: North America, International and Amazon Web Services (AWS). The North America segment consists of retail sales of consumer products (including from sellers) and subscriptions through North America-focused Websites, such as www.amazon.com, www.amazon.ca and www.amazon.com.mx. The International segment primarily consists of retail sales of consumer products (including from sellers) and subscriptions through internationally-focused websites, such as www.amazon.com.au, www.amazon.nl, www.amazon.es and www.amazon.co.uk. The AWS segment consists of sales of compute, storage, database, and other service offerings for start-ups, enterprises, government agencies and academic institutions.
- Market Cap: $577.8 billion
- Revenue Growth (LTM/LTM-1): 27%
- Expected Revenue Growth (NTM/LTM): 30%
- YTD Total Return: 20.5%
Alphabet Inc. (NASDAQ:GOOGL) – $853.99
Online Services
Alphabet Inc. is a holding company. The Company’s businesses include Google Inc. (Google) and its Internet products, such as Access, Calico, CapitalG, GV, Nest, Verily, Waymo and X. The Company’s segments include Google and Other Bets. The Google segment includes its Internet products, such as Search, Ads, Commerce, Maps, YouTube, Google Cloud, Android, Chrome and Google Play, as well as its hardware initiatives. The Google segment is engaged in advertising, sales of digital content, applications and cloud offerings, and sales of hardware products. The Other Bets segment is engaged in the sales of Internet and television services through Google Fiber, sales of Nest products and services, and licensing and research and development (R&D) services through Verily.
- Market Cap: $781.8 billion
- Revenue Growth (LTM/LTM-1): 20%
- Expected Revenue Growth (NTM/LTM): 25%
- YTD Total Return: 7.8%
Baidu Inc. (NASDAQ:BIDU) – $174.47
Online Services
Baidu, Inc. is a Chinese language Internet search provider that offers a Chinese language search platform on its Baidu.com website, ,which enables users to find information online, including Webpages, news, images, documents and multimedia files, through links provided on its website. In addition to serving individual Internet search users, the Company provides a platform for businesses to reach customers. Its business consists of three segments: search services, transaction services and iQiyi. iQiyi is an online video platform with a content library that includes licensed movies, television series, cartoons, variety shows and other programs.
- Market Cap: $81.0 billion
- Revenue Growth (LTM/LTM-1): 0%
- Expected Revenue Growth (NTM/LTM): 26%
- YTD Total Return: 6.1%
Disclosure: Neither the author nor any of the principals at Small Cap Power, or their family members, own shares in any of the companies mentioned above.
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