Lyle Daly, The Motley Fool
5 min read
In This Article:
-
The Trade Desk has loyal clients and recently announced impressive first-quarter earnings.
-
ASML is the only company making the EUV lithography systems used to produce the most-advanced semiconductors.
-
MercadoLibre is the biggest e-commerce company in Latin America and has seen revenue growth of 423% over the last five years.
Technology stocks can be a wild ride for investors. Last month, the Nasdaq Composite (NASDAQINDEX: ^IXIC) plummeted after the announcement of sweeping import tariffs and entered a bear market. It has rebounded since, but it's still down 7% on the year.
For those who don't mind volatility, tech companies can also deliver incredible returns. And the recent market downturn makes this an opportune time to scoop up shares at a discount. Here are three tech stocks that could be winners for your portfolio.
The Trade Desk (NASDAQ: TTD) operates a demand-side platform for digital ad buyers. Brands and agencies partner with The Trade Desk to run digital marketing campaigns. The company's cloud-based platform supports all the major channels, including display ads, video, social media, and audio.
After exceeding earnings expectations for eight years, The Trade Desk missed analyst estimates for 2024. Its share price dropped by more than 50%, and it fell even further after the Trump administration's announcement of import tariffs on April 2.
It was a challenging period for investors, but first-quarter results helped alleviate concerns. Revenue grew to $616 million, a 25% year-over-year increase. Customer retention topped 95%, as it has been for 11 consecutive years.
The Trade Desk has built a powerful data-driven platform that now includes artificial intelligence (AI) tools to help clients get the most out of their campaigns. It has a loyal client base, and it's in a growing industry, as global ad spending surpassed $1 trillion last year. With the recent drop in this company's share price, this is a chance to invest in a high-growth stock at a discount.
ASML (NASDAQ: ASML) is a Dutch AI company in a rare and privileged position: It's the only supplier of extreme ultraviolet (EUV) lithography systems. These are the highly advanced and expensive systems companies need to manufacture the fastest and most powerful semiconductors.
ASML's latest EUV equipment costs about $380 million apiece and weighs about two tons. Earlier systems cost about $180 million. Currently, ASML is only limited by its ability to produce this complex equipment -- at the end of 2024, it had an order backlog of 36 billion euros. Sales that year totaled 28.3 billion euros.
