The resilience of consumer spending amidst rising interest rates is, in part, thanks to an often overlooked yet significant factor, the aging demographic of Americans. As individuals aged 65 and older now represent a record share of total consumer spending, they play a crucial role in stabilizing the economy. Their financial stability and decreased susceptibility to interest rate fluctuations create a dependable source of demand in the market. This phenomenon, in turn, bodes well for economic growth and can have a positive impact on the performance of the stock market. Historically, FAANG stocks have thrived in this demographic trend. These three technology innovators stand out from the rest, and are the ones to watch for long-term expansion as they have the possibility of being the best FAANG stocks.
Activision Blizzard (ATVI)
Activision Blizzard (NASDAQ:ATVI) is an industry-leading video game company that is a part of the S&P 500 index. Forecasts predict the global video game market will reach a valuation of $593.5 billion by 2030, growing at a 13.4% CAGR. Expected growth comes from innovations allowing for the growth of 5G networks. These innovations are predicted to increase the number of gamers worldwide.
Activision boasts healthy financials. They reported revenue for Q2 2023 of $2.2 billion. The company also saw a 26.6% net profit margin, and $1.08 EPS. ATVI is futher positioned for growth through a record number of sales with new games on the horizon. The release of Overwatch 2 aided in increasing revenue by 34.7% for Q1 2023, and its release of Diablo 4 accounted for 91% of the Q2 revenue. Activision’s Call of Duty Modern Warfare 3 will release on November 8th, which will serve as a catalyst for revenue growth in Q3 2023.
Evolv Technologies (EVLV)
Evolv Technologies (NASDAQ:EVLV) is a leading American-based corporation focused on concealed weapon detection. The security screening industry in 2023 the market is set to be valued at $7.14 billion, with projections for 2028 to reach $9.81 billion. The growing need for security, places Evolv in a prime spot to capitalize on the new technological-based industry focus.
In Q2 2023, Evolv Technologies performed successfully from a financial standpoint. Revenue increased substantially, with a figure of $19.82 million being brought in, or an increase of 118.58% year-over-year (YOY). Compared to consensus industry estimates, EVLV continued its successful quarter through both revenue and EPS as revenue beat financial projections by 38.87%, outperforming expectations by over $5.5 million, while EPS similarly beat estimates by 14.89%. EVLV stock has grown 55% YOY.
The largest catalyst for EVLV’s future success is in the recent surge in artificial intelligence development. The newest detectors released by Evolv rely heavily on this technology. Overall, expect Evolv’s continual investment into research and development to pay off, bolstering both financials and company growth. EVLV is a great, cheap stock to invest in right now.
Synopsys (SNPS)
Synopsys (NASDAQ:SNPS) is a company that specializes in silicon chip design, verification and security. Financials for SNPS are solid, with Q3 revenue ending at $1.4 billion which grew 19.20% YOY. The company also beat EPS earnings by 5.25% hitting $2.88. Free cash flow has increased gradually to $399.82 million, placing SNPS in a healthy financial position. SNPS is up 55% year-to-date.
Synopsys’s newest innovation is its AI-driven electronic design automation. The company’s services are used by major tech giants such as Intel (NASDAQ:INTC), promising long-term growth for the company. On August 16, Synopsys also appointed Sassine Ghazi as the new CEO starting on January 1, 2024. The new leadership primes the company for long-term growth.
Synopsys’s plethora of innovations to the market puts the company on track to become the next global powerhouse. They have the potential to secure a spot among the new FAANG stocks.
On the date of publication, Michael Que 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.
The researchers contributing to this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.
