Tech Stocks Are on Fire in 2020: Where to Invest $100!
There have been a lot of industries suffering during this pandemic, but tech stocks simply haven’t been one of them. These companies have soared during the lockdown and beyond, thanks to the work-from-home economy. Companies that would likely have taken years, if not decades, to get off the ground are now suddenly a necessity.
Yet it does pose a problem for investors: where should they invest? Are these companies seeing a bubble that will one day burst? What an investor has to do is look at the companies that are doing well now that will continue to be a necessity after we return to normalcy. Here at the Motley Fool, we recommend long-term holds. So, of these tech stocks, which is the best bang for your buck over the next several years and decades?
Even if you only have $100, that can do a lot given the right stock. So, here is why you should consider Docebo (TSX:DCBO) as the next company to add to your portfolio.
Docebo
Docebo was in the right place at the right time during the pandemic. The company made its initial public offering (IPO) almost exactly a year ago. The business focuses on a learning management system, where employers can train any employee, anywhere, using artificial intelligence to help navigate the process.
I’m sure you can already see how this suddenly became a necessity. Companies big and small started picking up Docebo, including Amazon’s Amazon Web Services platform. This is just one household name example, but there have been several signing on to the company’s business as of late.
It’s no wonder then that Docebo stock saw a 328.57% increase in returns in the last year alone. And that’s not likely to shrink any time soon. The world has changed, where the work-from-home economy is likely to remain in place long after the pandemic is over. That means companies like Docebo will be a necessity, so employers can get the best employees possible no matter where they are in the world.
And now, Docebo’s earnings are just around the corner. The company will announce third-quarter results on Nov. 12, 2020, leaving a few weeks before shares are likely soar even higher. During the last quarter, revenue jumped 46.5% year over year, with recurring revenue growing 54.5%, and subscription revenue rising 55.1% year over year.
What’s exciting for investors is the company doesn’t need to do much work to continue its meteoric rise. It simply has to stay the course and continue to expand and work on its base system. If it just makes sure it’s up to date and the best in the business, it should continue to bring on Amazon-level enterprise clients.
Foolish takeaway
It can be hard to wade through tech stocks and figure out what to buy. But if there’s one you need today, it has to be Docebo. Before its next earnings call, expect to see the stock jump even further. But that might only be the beginning for this company that is necessary in today’s new world. Just $100 in this stock today could turn into $350 in just a year, if the stock continues on its recent path.
The post Tech Stocks Are on Fire in 2020: Where to Invest $100! appeared first on The Motley Fool Canada.
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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. David Gardner owns shares of Amazon. The Motley Fool owns shares of and recommends Amazon and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon.
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