Even though tech stocks went through a period of weakness over the last few months, the fact that they made a nice comeback tells us that there is still an appetite for companies in the sector. With the NASDAQ index hitting new all-time highs earlier this week and the Federal Reserve announcing that it will be leaving interest rates at near zero, for the time being, exploring some of the best tech stocks that are poised to perform well during the remainder of the year makes a lot of sense.
While focusing on the tried-and-true names that have been delivering strong performance in the tech sector over the years can be an intelligent approach, investors should also consider looking at emerging tech stock leaders. These are companies that have recently gone public and are providing a new product or service that has loads of potential. There are 3 new tech stock leaders, in particular, that stand out as great dip buy candidates going forward. Let’s take a further look below.
1. Asana
Thanks to the remote work revolution and the digital transformation of businesses all over the world, a company like Asana (NYSE:ASAN) is emerging as a potential leader in the software space. Asana offers a work management platform that enables individuals to manage and prioritize across different projects. It can be quite difficult to keep everyone on track when it comes to dealing with numerous projects and tasks, which is why Asana is such a valuable tool for any type of business. The platform is powered by a multi-dimensional data model called the work graph that ensures everyone stays on the same page during the workday.
This stock has been a very strong performer since Asana delivered record Q1 earnings back in early June. The company reported revenues of $76.7 million, up 61% year-over-year, and ended the quarter with over 100,000 paying customers. Perhaps the biggest takeaway from the report was the fact that the company issued very strong forward guidance for the fiscal year 2022, including revenues of $336 million to $340 million, representing year-over-year growth of 48% to 50%. The stock has rallied over 34% in June and is a great option to consider buying on dips.
2. Squarespace
One of the things to look out for when you are trying to identify potential leaders is stocks that are green or flat on days when the overall market is weak. That’s the case with Squarespace (NYSE:SQSP), which has been showing nice relative strength over the last few weeks. Squarespace is a company that offers an all-in-one website building and e-commerce platform. It’s unique in that it can help anyone create a sleek and aesthetically pleasing website without prior web design experience.
The platform is perfect for both business owners and independent creators that are looking to build an online presence for their brands. Squarespace offers websites, domains, e-commerce, social media tools, marketing tools, analytics, and more on its platform, and has been delivering strong user growth for the last few years. The company went public back in May and the stock has rallied over 37% since its market debut, which likely tells us that institutional investors have been scooping up shares. Squarespace stock also received several analyst upgrades over the last few weeks, which means that it could continue to rally as it receives more coverage. Consider adding shares of this new tech stock leader if you are interested in a tech company that enables entrepreneurship.
3. AppLovin Corp
Another potential leader in tech that has been one of the strongest performers in the sector lately is Applovin (NASDAQ:APP), as the stock has rallied over 36% the past month. AppLovin is a mobile application technology company that has created solutions that provide tools for mobile app developers to grow their businesses. Creating a mobile application is a lot of work, and after the application is online the developers still have to figure out marketing and monetization. That’s why AppLovin is such a compelling software solution.
The company’s software features three different solutions, AppDiscovery, MAX, and Compass. AppDiscovery is focused on marketing, MAX optimizes the value of an app’s advertising inventory, and Compass is an analytics software tool that helps developers keep their applications competitive. AppLovin is growing at a rapid pace, as the company reported Q1 revenue up 132% to $604 million and adjusted EBITDA that totaled $131 million, an increase of 110% year-over-year. It's another tech stock that is displaying leadership qualities, so make sure to keep an eye on it going forward.