Technology stocks remain hot with plenty of great options to choose right now. Cybersecurity, cryptocurrencies, social media and anything related to artificial intelligence (AI) have the attention of investors and analysts. And this has sent the share prices of these companies sharply higher.
Further, many tech stocks have enjoyed blistering rallies since the current bull market began in late 2022. Yet, investors still have an opportunity to take positions in strong tech stocks. And, they can ride their share prices to even greater heights. Many tech stocks that have performed strongly in recent months are expected to keep on rallying going forward.
So, let’s delve into three of the smartest tech stocks to buy with $5,000 right now.
CrowdStrike Holdings (CRWD)
Cybersecurity remains a hot area of tech, and CrowdStrike Holdings (NASDAQ:CRWD) is a top pick. The company’s stock has proven to be a long-term winner. It gained 56% this year, 172% in the last 12 months and 500% since going public five years ago. CRWD stock has steadily marched higher amid strong growth and powerhouse financial results. Recently, the stock was added to the S&P 500 index.
Also, CrowdStrike reported financial results for this year’s Q1 that beat Wall Street estimates on the top and bottom lines. The cybersecurity firm reported EPS of 93 cents, beating consensus estimates of 89 cents. Revenue totaled $921 million, up 34% from a year earlier and ahead of estimates that called for $905 million in sales. CrowdStrike’s free cash flow stood at $322.5 million at quarter’s end, up 42% from the previous year.
Analysts continue to rate CrowdStrike stock a strong buy. All 31 analysts who track the company’s progress giving the shares a buy rating.
Robinhood Markets (HOOD)
Online brokerage Robinhood Markets (NASDAQ:HOOD) is another tech stock that has been on fire this year.
So far in 2024, HOOD stock has gained 80%, bringing its 12 month increase to 130%. The company’s share price has been rising amid the current bull market as retail investors return to the fray and trade stocks more frequently. Also, Robinhood Markets has gotten a boost from the rebound in cryptocurrency trading.
Further, HOOD is expanding its role in cryptocurrency through the acquisition of privately held crypto exchange Bitstamp for $200 million in cash. The purchase is the largest deal in the company’s 11-year history and moves it further into the trading of cryptocurrencies. Analysts say the purchase of Bitstamp puts Robinhood Marketsin direct competition with the largest cryptocurrency exchanges, Binance and Coinbase Global (NASDAQ:COIN).
Additionally, Bitstamp’s crypto exchange is popular in Europe and Asia, offering more than 85 tradable assets that include products such as staking and lending. HOOD’s cryptocurrency business is seeing rapid growth fueled by price increases for digital assets. Crypto trading was largely responsible for Robinhood Martkets reporting record first-quarter financial results.
Reddit (RDDT)
Social media company Reddit (NYSE:RDDT) has a lot going for it. The company recently announced a new partnership with AI start-up company OpenAI. The OpenAI partnership is expected to attract more users to Reddit’s social media platform with AI-enhancements and more advertising. Specifically, the new partnership allows Reddit to leverage OpenAI’s technology, including its ChatGPT platform, to build tools and features that integrate Reddit’s content in real-time.
Also, OpenAI has committed to becoming an advertising partner of Reddit, which runs online message boards, including the popular WallStreetBets site. Reddit generates nearly all of its revenue from online advertising on its message boards. The company currently has 82 million active users. RDDT went public on March 21 of this year, and its first earnings report as a publicly traded company was impressive.
The still unprofitable company reported a loss per share of $8.19, which was not as bad as a loss of $8.71 that was expected among analysts. Revenue in the quarter totaled $243 million versus $212.8 million that was forecast on Wall Street. Sales rose 48% from a year earlier. And, Reddit reported $222.7 million in advertising revenue for the quarter, up nearly 40% year-over-year. RDDT stock has increased 33% since the March IPO.
On the date of publication, Joel Baglole did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.