Tech stocks have been booming throughout 2024 due to increased investor attention to new and developing technologies such as generative AI and cloud computing.
It has provided a large number of investment opportunities recently and still offers strong growth potential. However, due to a number of factors, including overall economic uncertainty and the sharp drop in the Japanese markets, which greatly affected global markets and sparked fears for investors, an impressive number of U.S. stocks have seen large selloffs recently. However, they are beginning to recover slightly, at least for the moment.
The tech industry as a whole has performed better than significant stock market indices such as the S&P 500, which has reported growth of 21% over this past year, while the Technology Select Sector SPDR Fund (NYSEARCA:XLK), which is considered to be a benchmark for the technology industry, has risen by 26%.
Below, I discuss three tech stocks that offer strong growth potential to investors. Like many other companies, they recently experienced a selloff, which opens a strong entry point for investors seeking a discount on strong buy stocks.
AppLovin (APP)
AppLovin (NASDAQ:APP) is an application software business that monetizes content for its users. Its products include AppDiscovery, MAX, and Adjust, which are all marketing platforms.
Over the past year, its share price has doubled due to new product rollout, strong earnings growth, and eager investors’ increased attention to generative AI stocks. AppLovin’s share price has recently fallen by 24% but has begun to rebound within the last couple of weeks.
On Aug. 7, AppLovin reported its earnings for the second quarter of 2024, stating that total revenue increased by 44% and net income nearly quadrupled to $310 million compared to the previous year. Its average pay per customer also increased year-over-year by 13%. For the third quarter, AppLovin anticipates that revenue will be between $1.115 billion and $1.135 billion, compared to the previous estimates of $1.1 billion.
AppLovin has provided investors with substantial growth. Its new advertising software, the Axon 2.0 engine, helps to grow its advertising capabilities and provides AppLovin with a decent revenue stream.
Celestica (CLS)
Celestica (NYSE:CLS) primarily manufactures electronic equipment for use in multiple industries, such as industrials, healthcare, aerospace and defense, and communication services.
Over this past year, its share price has more than doubled due to very strong earnings growth and future outlook. Its share price recently dropped by 30% but has now begun to recover towards its prior point before the dip in the market.
On July 24, CLS released its earnings for the second quarter of 2024, stating that total revenue increased by 23% and net income rose by 80% to $100 million year-over-year. It also raised its outlook for the full year 2024, anticipating revenue of approximately $9.45 billion.
Since 2021, Celestica has consistently beaten analysts’ earnings estimates, providing investors with a solid addition to a portfolio. It also offers strong growth potential within the tech industry.
Seagate Technology (STX)
Seagate Technology (NASDAQ:STX) produces data storage products, primarily solid-state drives (SSDs) and hard disk drives (HDDs). These products are used by individual users but also have larger-scale capabilities.
On July 23, Seagate reported its fourth quarter fiscal year 2024 earnings results, which stated total revenue increased by 18% compared to the previous year. A net loss of $92 million was reported for Q4 FY 2023, which shifted to a net income of $513 million for the fourth quarter of FY 2024.
Over the past year, its share price has increased by 45%. However, due to the rapid investor selloff, its share price has fallen by 15%. Within the last couple of days, however, it has begun to grow.
STX beat earnings expectations, and with continued growth potential among its products, it is in a very strong position. It also offers investors a decent dividend yield of 2.85% on an annual basis.
As of this writing, Noah Bolton 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.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.