Tech Titans ProPicks strategy soars 183.59% in February 2024

The Tech Titans ProPicks strategy delivered an impressive 183.59% return in February 2024, significantly outperforming major benchmark indices. In comparison, the S&P 500 (SPX) gained 2.08%, the Dow Jones Industrial Average (DJI) rose 1.23%, and the Nasdaq-100 (NDX) declined 4.62% over the same period.

[Chart: 1 | Strategy Return vs. Benchmarks]

Performance Recap

Over the past three months, the Tech Titans strategy has generated a remarkable 26.93% return, while the SPX, DJI, and NDX have returned 9.94%, 4.98%, and -3.12%, respectively. The strategy's outstanding performance can be attributed to the strong returns of several key holdings:

1. MicroStrategy Incorporated (MSTR) - Monthly Return: 51.64%

2. Super Micro Computer, Inc. (NASDAQ:SMCI) - Monthly Return: 14.54%

3. AppLovin Corporation (NASDAQ:APP) - Monthly Return: 11.05%

4. NVIDIA Corporation (NASDAQ:NVDA) - Monthly Return: 9.83%

5. DocuSign, Inc. (NASDAQ:DOCU) - Monthly Return: 6.69%

[Chart: 2 | Monthly return of each stock from last month]

New Additions

The Tech Titans strategy has added three new holdings as of March 4, 2024:

1. Allegro MicroSystems, Inc. (ALGM)

• Description: Allegro MicroSystems is a leading global developer of sensing and power solutions for motion control and energy-efficient systems in automotive and industrial markets.
• Market Cap (Adjusted): $5.19B
• Basic EPS (Cont. Ops): $1.15
• Basic EPS Growth: 45.84%
• P/E Ratio: 23.38
• Analyst Outlook: Allegro MicroSystems is well-positioned to benefit from the growing demand for energy-efficient solutions and the increasing adoption of electric vehicles. The company's strong market position, innovative product portfolio, and partnerships with major automotive manufacturers support a bullish outlook. However, potential risks include competition from larger players and the cyclical nature of the automotive industry.

2. Axcelis Technologies, Inc. (NASDAQ:ACLS)

• Description: Axcelis Technologies is a leading supplier of ion implantation and other processing equipment used in the fabrication of semiconductor chips.
• Market Cap (Adjusted): $3.67B
• Basic EPS (Cont. Ops): $7.52
• Basic EPS Growth: 35.68%
• P/E Ratio: 14.89
• Analyst Outlook: Axcelis Technologies is expected to benefit from the increasing demand for semiconductor chips across various industries, including automotive, consumer electronics, and data centers. The company's strong customer relationships, technological expertise, and expanding product portfolio support a positive outlook. Potential risks include the cyclical nature of the semiconductor industry and competition from larger equipment manufacturers.

3. Agilysys , Inc. (NASDAQ:AGYS)

• Description: Agilysys is a leading provider of innovative hospitality software solutions, offering point-of-sale, property management, inventory and procurement, and mobile and wireless solutions to the hospitality industry.
• Market Cap (Adjusted): $2.28B
• Basic EPS (Cont. Ops): $3.41
• Basic EPS Growth: 686.74%
• P/E Ratio: 26.66
• Analyst Outlook: Agilysys is well-positioned to benefit from the ongoing digital transformation in the hospitality industry. The company's cloud-based solutions, strong customer base, and focus on innovation support a bullish outlook. However, potential risks include competition from larger software providers and the impact of economic downturns on the hospitality sector.

Portfolio Updates

Removed Stocks:

1. RingCentral, Inc. (NYSE:RNG) - Monthly Return: -0.38%

2. DocuSign, Inc. (DOCU) - Monthly Return: 6.69%

3. Pure Storage, Inc. (NYSE:PSTG) - Monthly Return: -5.91%

###Continue Holding:

1. NVIDIA Corporation (NVDA) - Monthly Return: 9.83%

• Description: NVIDIA is a leading designer of graphics processing units (GPUs) for gaming and professional markets, as well as system on a chip (SoC) units for the mobile computing and automotive market.
• Market Cap (Adjusted): $2,224.01B
• Basic EPS (Cont. Ops): $12.05
• Basic EPS Growth: 586.29%
• P/E Ratio: 74.73
• Analyst Outlook: NVIDIA is expected to continue benefiting from the growing demand for AI, machine learning, and data center solutions. The company's strong market position, innovative product portfolio, and partnerships with major technology companies support a bullish outlook. Potential risks include competition from other chipmakers and the cyclical nature of the semiconductor industry.

2. Extreme Networks , Inc. (NASDAQ:EXTR) - Monthly Return: -7.70%

• Description: Extreme Networks is a leading provider of software-driven networking solutions for enterprise customers, offering wired and wireless network infrastructure, software for network management, analytics, and security.
• Market Cap (Adjusted): $1.48B
• Basic EPS (Cont. Ops): $0.62
• Basic EPS Growth: 66.43%
• P/E Ratio: 18.45
• Analyst Outlook: Extreme Networks is well-positioned to benefit from the increasing demand for secure, reliable, and high-performance networking solutions. The company's strong customer base, expanding product portfolio, and focus on software-driven solutions support a positive outlook. However, potential risks include competition from larger networking equipment providers and the impact of economic downturns on enterprise IT spending.

3. MicroStrategy Incorporated (MSTR) - Monthly Return: 51.64%

• Description: MicroStrategy is a leading provider of enterprise analytics and mobility software, offering a comprehensive platform for data discovery, mobile analytics, and identity intelligence.
• Market Cap (Adjusted): $27.77B
• Basic EPS (Cont. Ops): $31.39
• Basic EPS Growth: 124.18%
• P/E Ratio: 64.72
• Analyst Outlook: MicroStrategy's strong performance can be attributed to its significant Bitcoin holdings and the recent surge in cryptocurrency prices. The company's focus on enterprise analytics and mobility software also supports a bullish outlook, as businesses increasingly seek to leverage data for decision-making and optimize their mobile strategies. Potential risks include the volatility of Bitcoin prices and competition from other analytics and mobility software providers.

4. AppLovin Corporation (APP) - Monthly Return: 11.05%

• Description: AppLovin is a leading mobile app technology platform that helps developers market, monetize, and analyze their apps. The company also owns a portfolio of mobile apps across various genres.
• Market Cap (Adjusted): $22.78B
• Basic EPS (Cont. Ops): $1.01
• Basic EPS Growth: 294.41%
• P/E Ratio: 64.17
• Analyst Outlook: AppLovin is expected to benefit from the continued growth of the mobile app ecosystem and the increasing demand for app monetization and marketing solutions. The company's strong technology platform, extensive developer network, and diversified app portfolio support a bullish outlook. Potential risks include competition from other app monetization platforms and changes in app store policies that could impact the company's business model.

5. Perficient , Inc. (NASDAQ:PRFT) - Monthly Return: -14.06%

• Description: Perficient is a leading digital consultancy that helps enterprises navigate and accelerate their digital transformation journeys. The company offers a wide range of services, including strategy, design, development, and optimization of digital experiences.
• Market Cap (Adjusted): $1.95B
• Basic EPS (Cont. Ops): $2.91
• Basic EPS Growth: -5.57%
• P/E Ratio: 19.68
• Analyst Outlook: Perficient is well-positioned to benefit from the ongoing digital transformation trend, as businesses increasingly seek to enhance their digital capabilities and customer experiences. The company's strong client relationships, extensive expertise across various industries, and expanding service offerings support a positive outlook. However, potential risks include competition from larger IT consulting firms and the impact of economic downturns on enterprise IT spending.

6. Nutanix, Inc. (NASDAQ:NTNX) - Monthly Return: -3.23%

• Description: Nutanix is a leading provider of enterprise cloud platform software, offering a comprehensive solution for managing and scaling applications across public, private, and hybrid cloud environments.
• Market Cap (Adjusted): $15.23B
• Basic EPS (Cont. Ops): -$0.28
• Basic EPS Growth: 85.28%
• P/E Ratio: -226.20
• Analyst Outlook: Nutanix is expected to benefit from the growing adoption of hybrid and multi-cloud strategies by enterprises. The company's strong product portfolio, partnerships with major cloud providers, and focus on innovation support a bullish outlook. However, potential risks include competition from larger cloud infrastructure providers and the impact of economic downturns on enterprise IT spending.

7. Enphase Energy, Inc. (NASDAQ:ENPH) - Monthly Return: -8.77%

• Description: Enphase Energy is a leading provider of microinverter-based solar and battery systems for residential and commercial customers. The company's solutions enable customers to generate, store, and manage their own clean energy.
• Market Cap (Adjusted): $16.06B
• Basic EPS (Cont. Ops): $3.22
• Basic EPS Growth: 9.63%
• P/E Ratio: 36.59
• Analyst Outlook: Enphase Energy is well-positioned to benefit from the growing adoption of solar energy and the increasing demand for energy storage solutions. The company's strong brand reputation, innovative product portfolio, and expanding global presence support a positive outlook. However, potential risks include competition from other solar and storage solution providers and changes in government policies and incentives related to renewable energy.

8. Marathon Digital Holdings, Inc. (NASDAQ:MARA) - Monthly Return: -19.89%

• Description: Marathon Digital Holdings is a digital asset technology company that mines cryptocurrencies, with a focus on the blockchain ecosystem and the generation of digital assets.
• Market Cap (Adjusted): $5.79B
• Basic EPS (Cont. Ops): $1.41
• Basic EPS Growth: 123.04%
• P/E Ratio: 22.35
• Analyst Outlook: Marathon Digital Holdings' performance is closely tied to the cryptocurrency market, particularly Bitcoin. The company's significant Bitcoin holdings and mining operations support a bullish outlook, as the adoption and value of cryptocurrencies continue to grow. However, potential risks include the volatility of cryptocurrency prices, regulatory uncertainties, and competition from other mining companies.

9. Super Micro Computer, Inc. (SMCI) - Monthly Return: 14.54%

• Description: Super Micro Computer is a global leader in high-performance, high-efficiency server technology and innovation, providing end-to-end green computing solutions to the data center, cloud computing, enterprise IT, big data, high-performance computing, and embedded markets.
• Market Cap (Adjusted): $60.73B
• Basic EPS (Cont. Ops): $13.72
• Basic EPS Growth: 24.12%
• P/E Ratio: 82.92
• Analyst Outlook: Super Micro Computer is expected to benefit from the growing demand for high-performance computing solutions across various industries, including data centers, cloud computing, and enterprise IT. The company's strong product portfolio, focus on innovation, and commitment to green computing solutions support a bullish outlook. Potential risks include competition from larger server manufacturers and the impact of economic downturns on enterprise IT spending.

10. IPG Photonics Corporation (NASDAQ:IPGP) - Monthly Return: 2.84%

• Description: IPG Photonics is a leading developer and manufacturer of high-performance fiber lasers and amplifiers for diverse applications in numerous markets, such as materials processing, telecommunications, medical, and advanced applications.
• Market Cap (Adjusted): $4.16B
• Basic EPS (Cont. Ops): $4.64
• Basic EPS Growth: 114.38%
• P/E Ratio: 18.99
• Analyst Outlook: IPG Photonics is well-positioned to benefit from the increasing adoption of fiber lasers across various industries due to their superior performance, efficiency, and versatility compared to traditional lasers. The company's strong market position, technological expertise, and global presence support a positive outlook. However, potential risks include competition from other laser manufacturers and the impact of economic downturns on industrial demand.

11. Teradata Corporation (NYSE:TDC) - Monthly Return: -0.39%

• Description: Teradata is a leading provider of enterprise data analytics and management solutions, helping businesses leverage their data to drive better business outcomes and gain competitive advantages.
• Market Cap (Adjusted): $3.75B
• Basic EPS (Cont. Ops): $0.62
• Basic EPS Growth: 94.28%
• P/E Ratio: 60.51
• Analyst Outlook: Teradata is expected to benefit from the growing importance of data analytics and management in driving business decisions and outcomes. The company's strong product portfolio, cloud-based solutions, and expertise in handling large-scale data environments support a bullish outlook. Potential risks include competition from larger data analytics providers and the impact of economic downturns on enterprise IT spending.

12. Zoom Video Communications , Inc. (NASDAQ:ZM) - Monthly Return: -8.72%

• Description: Zoom Video Communications is a leading provider of video-first communication and collaboration solutions, offering a cloud-based platform for video, voice, content sharing, and chat across mobile devices, desktops, telephones, and room systems.
• Market Cap (Adjusted): $19.91B
• Basic EPS (Cont. Ops): $2.12
• Basic EPS Growth: 506.13%
• P/E Ratio: 31.23
• Analyst Outlook: Zoom Video Communications has experienced significant growth due to the increased adoption of remote work and virtual communication during the COVID-19 pandemic. While the company is expected to continue benefiting from the ongoing trend of digital transformation and the growing demand for video communication solutions, its growth may moderate as businesses return to in-person operations. Potential risks include competition from other video communication providers and the impact of economic downturns on enterprise IT spending.

###New Holdings:

1. Allegro MicroSystems, Inc. (ALGM)

2. Axcelis Technologies, Inc. (ACLS)

3. Agilysys, Inc. (AGYS)

In summary, the Tech Titans ProPicks strategy has demonstrated outstanding performance in February 2024, significantly outpacing major benchmark indices. The strategy's strong returns can be attributed to the impressive performance of several key holdings, such as MicroStrategy, Super Micro Computer, and AppLovin. The addition of three new holdings – Allegro MicroSystems, Axcelis Technologies, and Agilysys – further diversifies the portfolio and positions the strategy to capitalize on the growing demand for innovative technology solutions across various industries.

As the technology sector continues to evolve and drive economic growth, the Tech Titans ProPicks strategy remains well-positioned to benefit from the ongoing digital transformation and the increasing importance of data, connectivity, and automation in shaping the future of business and society.

Monthly News Highlights

NVIDIA Corporation (NVDA)

• On March 1, Nvidia's stock market value was set to close above $2 trillion for the first time after an optimistic report from Dell Technologies (NYSE:DELL) indicated a surge in orders for its AI-optimized servers. Nvidia's stock rose by 3.5%, pushing its market capitalization to $2.05 trillion. Read more

• On March 4, Nvidia surpassed Saudi Aramco (TADAWUL:2222) to become the world's third-most valuable public company, after Apple (NASDAQ:AAPL) and Microsoft (NASDAQ:MSFT). The semiconductor company has experienced a rally in its share price due to increased demand for artificial intelligence (AI) technology. Read more

• On March 5, CFRA raised its price target for NVIDIA stock from $840 to $1,000 based on a bullish outlook for the company's next-generation GPUs and anticipated market demand. CFRA predicts that NVIDIA will outperform consensus forecasts as it introduces its new GPUs. Read more

• On March 7, Mizuho Securities raised its price target for NVIDIA Corporation to $1,000 from $850, citing the company's strong position in the artificial intelligence (AI) sector. Mizuho predicts that NVIDIA's potential revenue growth in the data center segment could reach approximately $89 billion by 2024. Read more

MicroStrategy Incorporated (MSTR)

• On March 4, business intelligence firm MicroStrategy announced plans to raise $600 million through the issuance of Senior Convertible notes. The company intends to use the net proceeds from this financing to purchase additional Bitcoin and for general corporate purposes. Read more

• On March 11, MicroStrategy purchased an additional 12,000 Bitcoin using $800 million raised from a convertible note offering. This brings MicroStrategy's total Bitcoin holdings to 205,000 BTC, acquired at an average cost of $31,500 per Bitcoin. Read more

Nutanix, Inc. (NTNX)

• On March 4, enterprise cloud computing leader Nutanix reported a strong performance in the second quarter of fiscal year 2024, surpassing all guided metrics and achieving record quarterly revenue alongside its first GAAP operating profitability. The company's success is attributed to steady demand for its solutions as businesses continue to prioritize digital transformation and infrastructure modernization. Read more

• On March 20, Nutanix filed a lawsuit against Tessell for alleged copyright and patent infringement. Nutanix claims that three founders of Tessell, who were previously employed by Nutanix, used the company's resources to develop and finance their own product while still working at Nutanix. Read more

• On March 27, Morgan Stanley maintained its Equalweight rating on Nutanix shares but increased the price target to $63 from $58. The firm believes that Nutanix could experience a revenue growth boost of 2-5% due to potential increased traction following Broadcom (NASDAQ:AVGO)'s acquisition of VMware (NYSE:VMW). Read more

Super Micro Computer, Inc. (SMCI)

• On March 4, Super Micro Computer (SMCI) stock surged over 12% in premarket trading after it was announced that the company will be added to the S&P 500 index. SMCI is the best-performing large-cap company this year, with its stock surging nearly 220% since January 1. Read more

• On March 13, Super Micro Computer (SMCI) stock saw a significant increase of over 315% year-to-date, with shares on the verge of breaking above $1200. The company is a leading AI infrastructure provider and has partnerships with key AI component suppliers such as NVIDIA, AMD, and Intel (NASDAQ:INTC). Read more

• On March 18, Super Micro Computer was set to join the S&P 500 index. The company benefits from close ties with Nvidia and Advanced Micro Devices (NASDAQ:AMD), allowing it to launch products faster than rivals Dell and Hewlett Packard Enterprise (NYSE:HPE). Read more

Zoom Video Communications, Inc. (ZM)

• On March 19, investment firm Jefferies initiated coverage of Zoom Video with a 'hold' rating and a price target of $70. Jefferies acknowledged Zoom's position as a leading collaboration platform but also noted its current transition phase. Read more

• On March 25, Zoom announced that its AI-powered collaboration platform, Zoom Workplace, is now available in AWS Marketplace. This allows customers to purchase Zoom Workplace products, including Meetings, Team Chat, Phone, Whiteboard, Spaces, as well as Zoom Contact Center and Revenue Accelerator through the digital catalog. Read more

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.