HomeBusiness2 top tech stocks to buy in January

2 top tech stocks to buy in January

2025 is off to a strong start. Last month’s inflation figures were modest, with the three major stock indexes rising on January 16 last year. The stock market has generally been surging lately, with technology stocks leading the way in this bull market.

However, not every technology stock got the memo about impressive price gains. Some of my favorite stocks in this sector are currently trading well below their 52-week highs, but their business prospects still look great. With these diverse trends in mind, you should consider purchasing some Roku (NASDAQ: ROKU) And MongoDB (NASDAQ: MDB) shares in January.

This is why.

Let’s start with MongoDB. This next-generation database software expert’s revenue has increased 49% over the past two years. Free cash flows increased by 520% ​​over the same period:

MDB Revenue Data (TTM) according to YCharts

However, shares of MongoDB are up only 25% during this period. To put that achievement into context, the S&P500 (SNPINDEX: ^GSPC) rose by 49% and the Nasdaq Composite (NASDAQINDEX: ^IXIC) increased by 75%.

The database expert’s chart shows a 29% decline since December 9, 2024. The company reported third-quarter results that day, beating Wall Street consensus expectations by 73%, while revenue was 6% above the average analyst target lay. The next day, shares were still tumbling as Michael Gordon, former CFO, also announced his resignation. The company also offered modest guidance for the next quarter, but that should be less interesting as MongoDB has a habit of keeping its earnings forecasts low.

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And Gordon leaves on friendly terms. He still gives presentations at investor conferences and the topic of his departure was not even discussed. Instead, Gordon spent most of his fireside chat highlighting how high demand is for MongoDB’s ultra-flexible database solutions. In particular, the cloud-based Atlas database is becoming a popular data manager for large-scale artificial intelligence (AI) projects.

I’ll admit that MongoDB stock isn’t cheap based on traditional metrics. At the same time, the company has earned its 74x price-to-earnings ratio by growing revenue at a compound annual rate of 45% over the past five years. The recent discount in stock prices looks like a wide-open buying window.

Roku’s story is surprisingly similar to MongoDB’s. Many investors wrote it off as a response to the 2020 coronavirus lockdowns, which pushed the high-flying market into Wall Street’s bargain basement in 2022 and 2023. The stock has drifted mostly sideways since then, including a 19% decline in the generally booming 2024 market year.

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