Whether it’s big data, machine learning, or artificial intelligence, investors are well-versed in the tech giants. But for investors wanting the next big thing inside their portfolios Alteryx (NYSE:AYX), Splunk (NASDAQ:SPLK) and MongoDB (NASDAQ:MDB) are three lesser-known big data stocks with big-time prospects off and on the price charts. Let me explain.
Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN), Alphabet (NASDAQ:GOOGL), Salesforce, (NYSE:CRM), Intel (NASDAQ:INTC) — they’re mega-caps which have made their names and impact on businesses and consumers alike with game-changing technologies in recent years. And in our ever-connected and data-driven world, they’re also big-time players influencing these new technologies once considered the stuff of science fiction.
With this market area expected to see global spending more than double to over $100 billion in the next several years according to research from Wikibon, that’s growth investors should be interested in buying. But the buck for big profits in your portfolio shouldn’t stop there when it comes to big data stocks.
For investors interested in finding the next big investment within AI, machine learning, and big data stocks, AYX, SPLK and MDB are making their own marks and shaping up for purchase on their price charts.
Alteryx is the first of our big data stocks to buy. This software outfit allows business analysts to locate answers amid today’s sea of data that’s at our fingertips. It also helps end-users obtain a visual and contextual understanding of the information. To say the least, AYX stock’s place in big data is important and growing to the tune of more than 50% in year-over-year revenues.
With a market capitalization of less than $7.0 billion AYX certainly has the opportunity to grow despite an incredible rally in excess of 600% since going public a couple years back. And now, following a fairly ordinary but much needed corrective pullback of just more than 30%, shares of this big data stock are nearly ready for buying.
Buying AYX Stock
AYX stock confirmed a weekly chart pivot low this week as shares raced above $113.15. That’s the high of last week’s doji candlestick. With shares signaling an oversold stochastics and having retreated beneath this entry and back inside the reversal pattern, the plan is simple.
Buy this big data stock on a second confirmation move through $113.15 as long as the current low remains intact. Set a stop-loss below the pattern and take initial profits at 2x the accepted exposure.
Splunk is another lesser-known name with the world of big data stocks that’s on the radar for buying. SPLK stock is an innovator in systems used to analyze machine data and help other companies gain operational intelligence, as well as find solutions in the Internet of Things or IoT.
This big data stock has a market cap of nearly $18 billion, sport sales growth of 33% over the past year and a forward P/E of 50. The reasonable pricing for this well-positioned company looks all the more attractive when considering SPLK’s monthly price chart. AYX stock is nearing a confirmed completion of a double-bottom formation. As part of a larger base-on-base, AYX’s current pattern finding support above the 2014 all-time-high and stochastics in oversold territory, there’s plenty of technical evidence for buying this big data stock.
Buying SPLK Stock
Buy SPLK through the September pivot high of $123.76. I’d suggest using a weekly close beneath $110 for containing risk on the downside. And for reeling in exposure on the upside, taking initial profits in-between $145 – $150 as this big data stock stages a breakout looks appropriate.
MongoDB is the last of our big data stocks to buy. This $7.0 billion company is a relational databases provider which meets the needs of today’s complex big data requirements. Specifically, this solution is called NoSQL and MDB stock is the hands down leader with companies and a thriving ecosystem of users totaling more than one million.
MDB stock isn’t turning a profit yet, but for good reasons I’m willing to look the other way. With year-over-year quarterly sales growth of nearly 67%, a slightly outsized corrective pullback of 39% supported by an intact weekly trendline and a confirmed bottoming candle, this big data stock is ready to buy today.
Buying MDB Stock
Buy MDB stock today as shares rest near last month’s high of $132.15. I’d recommend respecting the candlestick low for closing any losses if needed. That amounts to risk of around 15%. It’s a bit more than what I’d accept in larger market leaders. But as a certifiable growth name and a price chart which can easily cover the exposure multiple times over, there’s no time like the present for this big data stock.
Disclosure: Investment accounts under Christopher Tyler’s management do not currently own positions in securities mentioned in this article. The information offered is based upon Christopher Tyler’s observations and strictly intended for educational purposes only; the use of which is the responsibility of the individual. For additional market insights and related musings, follow Chris on Twitter @Options_CAT and StockTwits