SPECIAL REPORT The Top 7 Stocks for 2024

Tech Giants on Sale: 3 Overlooked Stocks Poised for a Massive Rebound 

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  • These overlooked tech stocks are selling at a discount, for now.
  • PDD (PDD): Its international expansion and focus on value offerings provide PDD a competitive advantage.
  • Tencent (TCEHY): Tencent benefits from diversified revenue streams and its strong user base.
  • PayPal (PYPL): PYPL excels in e-commerce with rapid growth in branded checkout volume.
Overlooked Tech Stocks - Tech Giants on Sale: 3 Overlooked Stocks Poised for a Massive Rebound 

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In a tech landscape characterized by constant innovation and shifting dynamics, the success of major companies depends on their adaptability and global reach. This article will explore three overlooked tech stocks that may emerge again as trailblazers. The first one’s meteoric rise is underpinned by its remarkable revenue growth. The second’s social networks boast massive monthly active users. Finally, the third is making waves with its rapid growth. Let’s delve into these overlooked tech stocks that have the potential for big growth.

PDD (PDD)

A smartphone displays the Pinduoduo (PDD) website.
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PDD’s (NASDAQ:PDD) revenue growth is a standout strength. For instance, in Q2 2023, the company achieved 52.3 billion Chinese Yuan in revenue, marking a substantial 66% year-on-year increase.

PDD’s expansion into international markets through its platform, Temu, is a significant driver of its future growth potential. The company’s entry into the U.S., Canada and Europe broadens PDD’s market reach and diversifies its revenue streams, reducing dependence on any single market.

Finally, its annual Smart Agriculture Competition exemplifies PDD’s focus on precision farming. Through partnerships with leading agronomic institutes PDD encourages aspiring teams to devise cost-effective methods for growing high-quality produce. This bridges the gap between research and real-world applications. Therefore, it is promoting the digital transformation of agriculture for the benefit of society and building a moat for PDD.

Tencent (TCEHY)

Tencent (TCEHY) sign on Tencent headquarters in Shenzhen, China.
Source: StreetVJ / Shutterstock.com

Tencent’s (OTCMKTS:TCEHY) revenue streams are diversified across various segments. Value-added services contribute 50% of total revenue, online advertising accounts for 17% and fintech and business services make up the remainder. This diversification reduces dependence on a single revenue source, making Tencent more resilient to market fluctuations.

Additionally, Tencent’s social networks, including Weixin and WeChat, have achieved a combined monthly active user base of 1.3 billion. Tencent’s ability to continually attract and retain users is crucial for its advertising and social media businesses. The synergy among accounts demonstrates the company’s ability to create value for users, attracting advertisers.

Finally, Tencent’s video game titles have demonstrated strong user engagement and revenue generation. A fundamental strength is Tencent’s ability to maintain a competitive edge in the global gaming market. Games like League of Legends and Honor of Kings continue to perform well.

PayPal (PYPL)

PayPal logo and front of headquarters. PYPL stock
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PayPal’s (NASDAQ:PYPL) ability to capitalize on the accelerated growth of branded checkout volume signifies its strong position in the e-commerce landscape. It was 6.5% in June but grew to 8% in July, the highest monthly branded checkout growth level.

Also, PayPal’s competitive differentiation is a key strength. Unlike many other payment processors, the company’s direct relationship with consumers give it a unique edge. Further, PayPal’s ability to maintain best-in-class authorization rates is a quantitative strength. High authorization rates are critical for success in the payment processing industry, as they directly impact transaction volume and revenue.

Moreover, PayPal’s strategic expansion into international markets, including Europe and Latin America, drives growth and diversifies revenue streams. These markets present opportunities for margin expansion, which can support the company’s profitability.

Finally, the appointment of Alex Chriss as the next CEO of PayPal is a significant strength. His successful track record at Intuit (NASDAQ:INTU), notably as chief product officer and general manager of the self-employed and small business division, demonstrates his ability to drive growth and innovation.

As of this writing, Yiannis Zourmpanos held a long position in PYPL. The opinions expressed in this article are those of the writer, subject to the Investorplace.com Publishing Guidelines.

Yiannis Zourmpanos is the founder of Yiazou Capital Research, a stock-market research platform designed to elevate the due diligence process through in-depth business analysis.


Article printed from InvestorPlace Media, https://investorplace.com/2023/10/tech-giants-on-sale-3-overlooked-stocks-poised-for-a-massive-rebound/.

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