Smart Tech: The Road to Recovery for Tech Stocks in 2023
In the ever-evolving world of technology, 2022 proved to be a challenging year for many tech stocks. However, as we look towards the future, there’s a renewed sense of optimism for certain companies that have weathered the storm. While mega-cap tech stocks garnered much of the spotlight, another class of recovering tech stocks shows potential for a strong comeback. We’ll explore the resilience of smart tech and three notable companies – SQ, DKNG, and INTU – that have been on the path to recovery.
Smart Tech: A New Beginning
Smart technology encompasses various sectors, from fintech to online betting platforms and software solutions. It’s the realm of innovation and forward-thinking, making it a key driver in the tech industry. With 2022’s turbulent market conditions, many high-growth tech companies, including SQ, DKNG, and INTU, saw their share prices plummet. Despite these setbacks, they now present intriguing opportunities for investors looking to ride the wave of their resurgence.
Tech Sales and Recovery Momentum
The recovery momentum in the tech sector has primarily been focused on mega-cap tech giants. However, these high-growth companies, like DKNG and SQ, may offer a different kind of investment opportunity. Their recovery journeys have been influenced by various factors, such as high price-to-earnings (P/E) multiples and market dynamics.
SQ: A Financial Revival
Formerly known as Square, SQ is a fintech powerhouse led by the legendary Jack Dorsey. The company faced a significant setback, losing over 85% of its value from its 2021 peak to its 2023 low. Much of this can be attributed to the challenges posed by high interest rates and increasing competition in the digital wallet and payment sector. However, SQ remains a promising investment due to its resilient user base and ongoing innovations in the digital payment space. With strong quarterly earnings and potential crypto projects, SQ is a stock to consider for those who believe that the worst is behind us.
DKNG: Betting on Online Success
DraftKings, represented by the ticker DKNG, is another company that took a beating in 2022 but is now on a triumphant path to recovery. With a staggering 225% increase in shares year-to-date, DKNG reported a remarkable third quarter and upped its guidance. Sales skyrocketed by 57%, reaching $790 million, and the firm welcomed 2.3 million monthly unique players during the quarter. As the online betting industry thrives, DKNG is positioned for growth.
INTU: Software Solutions for the Win
Intuit specialises in software solutions with its ticker INTU and has also experienced a resurgence. The company has received a “Strong Buy” rating from analysts, with 21 “Buys” and three “Holds” assigned in the past three months. This strong recommendation is supported by their impressive recovery, showcasing an 11.1% upside potential. INTU is another smart tech player to watch, offering software solutions that have become essential in the modern business landscape.
Companies like SQ, DKNG, and INTU are showing strong signs of bouncing back from their 2022 lows, offering promising investment opportunities. As interest rates begin to change course, high-growth tech companies, sensitive to these rate shifts, might lead the next leg of the market rally. So, whether you’re looking to invest in fintech, online betting, or software solutions, these recovering tech stocks could be your ticket to substantial returns in the world of smart tech.