Some are arguing that we’re back in a bull market and with the way the S&P 500 is trading, it’s easy to understand why. With sentiment turning higher, it’s got investors looking for millionaire-maker tech stocks.
Of course, it helps that tech has been leading the charge higher.
The Nasdaq is up about 30% so far in 2023, while the S&P 500 is up a respectable 14%. Mega-cap tech stocks like Apple (NASDAQ:AAPL), Meta (NASDAQ:META) and Nvidia (NASDAQ:NVDA) have generated an enormous chunk of the gains, along with a few other names.
That said, not all of tech has gone along for the ride. As a result, we’re looking for long-term tech stocks to buy and specifically, we’re looking at tech stocks for wealth building.
Some of these firms are well known. Others continue to fly under the radar. Either way, let’s look at a few names with potential to become millionaire-maker tech stocks.
Millionaire-Maker Tech Stocks: The Trade Desk (TTD)
Until The Trade Desk (NASDAQ:TTD) endures a long, steady run to all-time highs, it will be hard not to include this high-quality operator on lists like this.
The Trade Desk operates a demand-side advertising platform. While it’s not the biggest ad firm out there, it’s one of the best at what it does. Specifically, it continues to leverage connected TVs as a huge driver for growth, but works across a broad array of other spectrums as well.
Co-founder and CEO Jeff Green has built a fantastic firm and TTD stock has become the epitome of what a good company looks like while volatility remains high. Despite the Covid-19 pandemic and the 2022 bear market — both scenarios where The Trade Desk stock was hit hard — the firm continued to churn out strong results.
Even better, it remains profitable and cash flow positive.
Consensus expectations call for more than 20% revenue growth this year and next year, to go alongside 17% earnings growth in 2023 and 20.5% growth in 2024.
High Risk, High Reward: Snap (SNAP)
I would classify Snap (NYSE:SNAP) as a high-risk, high-reward stock. On the one hand, many other advertising platforms have seen a return to growth and stability whether that’s Alphabet (NASDAQ:GOOGL, NASDAQ:GOOG), Meta or even the previously-mentioned The Trade Desk.
However, Snap has not.
Shares plunged 20% after the company reported earnings in late April. Despite beating on earnings, revenue slumped 6.7% year over year and missed analysts’ expectations. Ultimately, the stock fell after declining in four out of the five sessions after earnings.
On the plus side, daily active users (DAUs) grew 15% year over year to 383 million.
I view Snap as the more cyclical version of social media. When times are tough, other stocks hold up well. However, when times are booming, Snap stock has the potential to explode. Shares ultimately fell from the all-time high, but the rebound has been quiet so far. Bubbling between $10 and $11, this stock has potential to roar if it gets going.
Long-Term Tech Stocks to Buy: PayPal (PYPL)
Until PayPal (NASDAQ:PYPL) starts to get some recognition and at least a little more premium, I have a hard time not pounding the table a bit. That’s as shares hit a new 52-week and multi-year low in late May.
Despite several above-consensus earnings reports and solid outlooks, investors refused to buy the stock. Then the company reported one quarter that investors didn’t like and they dump the stock — which happened to be a top- and bottom-line beat with a small boost to its full-year earnings outlook but implying a lower margin outlook.
Shares fell 12% in a single session after reporting earnings, then slumped almost 22% by the time the selling ended.
The stock trades at just 13 times earnings and is forecast to grow earnings by almost 20% this year. At some point, the market will like this name (and if it ever regains the all-time high), it will mark a major rally off the low.
On the date of publication, Bret Kenwell held a long position in TTD and PYPL. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
