Forget Dogecoin, these 2 tech stocks are better buys now


Dogecoin (CRYPTO: DOGE) started as a joke, but has delivered seriously convincing results. The price of the cryptocurrency has risen nearly 2,500% in the last year alone, and investors who took Dogecoin seriously or just tried it for the sake of novelty have seen excellent returns.

Anyone who has had outstanding returns on Dogecoin should absolutely be amazed, but past performance does not guarantee future returns, and the cryptocurrency looks quite risky at this stage of its incredible run. There are plenty of other explosive growth games on the table, however. If you’re looking for big wins, read on to see why these two stocks are better bets than Dogecoin.

Image source: Getty Images.

1. Zuora

Many tech companies saw their ratings soar as investors turned to software-focused stocks amid the coronavirus pandemic, but gains for Zuora (NYSE: ZUO) were rather dumb. Software-as-a-Service (SaaS) Stocks have generally been big winners over the past year as clients sought digital solutions to the challenges posed by the pandemic, but Zuora has acted pretty much unchanged since early 2020.

The company provides a subscription billing and revenue recognition software platform that makes it easy for companies to implement and scale recurring revenue streams. More and more companies are switching to subscription-based models as this approach helps with customer loyalty and is more profitable in the long term.

The growth of the subscription economy has already transformed consumer and corporate markets, and the increasing preference for recurring revenue streams should provide Zuora with a long-term tailwind. On the flip side, the company struggled to get new customers on board its platform during the pandemic, and that meant its business and stock lagged behind other SaaS executives.

The company relies on large corporations for most of its business, and large companies often hesitate to adopt new business models and software platforms in the face of economic uncertainty. The good news is that growth prospects appear to be improving and Zuora is trading at attractive levels for a SaaS company with great potential for expansion.

Zuora stock is still trading more than 60% from its high of $ 37.09 per share in the summer of 2018, but the company’s growth prospects remain promising. Stocks look attractive at current prices, and there is a good chance the stock will hit back and make new highs.

The company has a market capitalization of roughly $ 1.6 billion and trades at 4.7 times its expected sales this year. If you’re looking for tech stocks that are poised to outperform even with valuations in the pressured sector, Zuora stands out as a top pick.

2. Ubisoft entertainment

The global video game industry is set for long-term growth and Ubisoft entertainment (OTC: UBSFY) Stocks offer an undervalued way to capitalize on this trend. While main competitors Activision Blizzard and Take-Two Interactive Having seen impressive years of growth recently, Ubisoft’s performance has been a little more uneven. The gaming publisher’s share was up around 9% over the past three years.

A combination of delays and underperformance on some key releases temporarily slowed the company’s momentum, but it looks like Ubisoft is poised to bounce back and deliver a strong performance. The latest edition from the company Assassin’s Creed Franchise is posting record numbers and it looks like the French publisher is recovering and benefiting from the industry’s tailwind.

The company ranked as the publisher with the second highest revenue Sony and Microsoft‘s next-generation console platforms last year, and it was the third highest publisher based on revenue NintendoSwitch console.

Including franchises Rainbow Six and Ghost recon still room for growth on console platforms and perhaps even more potential on mobile devices. The latest performance also suggests that Ubisoft will be successful in revitalizing the world Just dance Franchise that was once a huge hit in the casual game market.

Ubisoft currently has a market capitalization of approximately $ 10 billion and is valued at roughly 3.7 times this year’s expected revenue and 21 times the mean of management’s expected operating profit target. For a company with a proven collection of video game franchises, development studios, and marketing teams, this is a rating that leaves plenty of room for upside potential.

The stock recently pulled back due to volatility in the tech sector and fourth quarter guidance that was under-testing the market. Long-term investors, however, should view the sell-off as an opportunity to buy one of the cheaper stocks in the gambling sector.

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Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. Keith Noonan owns shares of Activision Blizzard, Take-Two Interactive and Zuora. The Motley Fool owns shares of and recommends Activision Blizzard, Microsoft, Take-Two Interactive, and Zuora. The Motley Fool recommends Nintendo and Ubisoft Entertainment. The Motley Fool has one Confidentiality Policy.

The views and opinions expressed are those of the author and do not necessarily reflect those of Nasdaq, Inc.


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