Three Fast-Growing Technology Shares That Can Be Evaluated Before Income Reports

The income report period of the US technology industry will gain momentum in the coming days.

Even though giants like Apple (NASDAQ :), Amazon (NASDAQ :), Google’s parent company Alphabet (NASDAQ :), (NASDAQ :), Tesla (NASDAQ 🙂 and Facebook (NASDAQ 🙂 will again become the focus point) Investors may want to follow other high performing companies that can offer strong growth in the long run.

In this article, we look at three popular technology shares that are preparing to record explosive growth in revenue and profits thanks to their innovative products. All three deserve to be evaluated before the quarterly results they will publish in the coming days.

1. Pinterest

  • To publish quarterly results after market close on Thursday, February 4th
  • Earnings Per Share Growth Forecast: 175% year over year
  • Income Growth Forecast: 61.1% year over year
Pinterest (NYSE 🙂 shares, which gained close to 250% value in 2020, continued to rise in 2021 and rose 5% since the beginning of the year.

The San Francisco, California-based social media company has benefited from advertisers wanting to avoid toxic and controversial content on other social media platforms such as Facebook and Twitter (NYSE :).

The PINS share, which reached a historic high of $ 76.88 on January 13, closed yesterday at $ 69.24, giving the company a market value of about $ 45.6 billion.

PINS Daily Chart
Pinterest, which managed to surpass the quarterly expectations it published at the end of October, is preparing to publish its latest revenue report on Thursday, February 4, after the market closing.

The consensus expectation is that earnings per share in the fourth quarter will increase to $ 0.33 compared to $ 0.12 in the same period last year. Revenues are expected to increase by 61% year on year to $ 644.2 million, driven by higher ad spend and increased user interaction levels during the holiday season.

Apart from these figures, investors will want to see whether Pinterest has managed to maintain the current high growth rate of its global monthly active user (MAU) number. Global monthly active users increased 37% year on year to 442 million in the last quarter.

Another key metric to focus on is Pinterest’s average revenue per user (ARPU). In the US, the social media company had an average revenue of $ 3.85 per user with an increase of 31% in the third quarter, while outside the USA this figure was up 66% to $ 0.21.

2. Fortinet

  • To publish quarterly results after market close on Thursday, February 4th
  • Earnings Per Share Growth Forecast: 26.3% year over year
  • Income Growth Forecast: 17.6% year over year
Cybersecurity expert Fortinet (NASDAQ 🙂 has become one of the best performers in the rapidly growing cybersecurity industry in recent months, with shares gaining nearly 40% since late October.

The cloud-based information security company has benefited from the increase in demand for its products and services as the COVID-19 outbreak accelerated corporate digitalization trends.

FTNT share, which saw a historic record high of $ 155.31 on January 12, closed yesterday at $ 149.65, giving the Sunnyvale, California-based company $ 24.4 billion in market value.

FTNT Daily Chart
Fortinet, which managed to exceed its revenue expectations and in its third quarter results published at the end of October, will publish its latest revenue report on Thursday, February 4th, after the closing of the US markets.

For 11 consecutive quarters since the first quarter of 2018, the company has managed to meet or surpass Wall Street’s predictions.

The consensus expectation is that earnings per share will increase by 26% year on year to $ 0.96. Revenues are expected to reach $ 722.5 million, up 18% compared to the same period last year, as demand for security solutions offered by the shift to work from home increased during the COVID-19 pandemic.

Perhaps the area of ​​higher interest will be growth rates in Fortinet’s services segment, which includes offerings such as FortiGuard security subscriptions and FortiCare technical support. This segment recorded a 22% year-over-year sales growth in the third quarter.

3. Snap

  • To publish quarterly results after market close on Thursday, February 4th
  • Earnings Per Share Growth Forecast: 58.8% year over year
  • Income Growth Forecast: 51% year over year
Snap (NYSE :), the parent company of the social media messaging app Snapchat, was another name among the big winners of 2020, and shares gained 215% with the change in investor sentiment.

The Santa Monica, California-based technology company, which has performed much stronger than its competitors such as Facebook and Twitter in the last 12 months, has seen a significant increase in user growth while also seeing strong demand from advertisers.

The share of SNAP, which has gained about 7% so far in 2021, closed yesterday evening at $ 53.29, close to its historic peak of $ 57.39 on January 21, giving the company a market value of about $ 81.2 billion.

SNAP Daily Chart
Snap in the last quarter and well above revenue expectations, will release its latest revenue report on Thursday, February 4th, after the market close.

The consensus expectation is that the loss per share will decline to $ 0.07 in the fourth quarter, compared to $ 0.17 last year. Revenues are expected to reach $ 846.9 million, up 51% compared to last year, thanks to the increase in spending on the platform.

In addition, details of Snap’s daily active user (DAU) figures will also be followed closely. The growth rate in the number of users of the app has started to increase again, and the number of daily users has reached a historic peak of 249 million in the third quarter, increasing 18% compared to last year.

Investors will also want to see Snap’s growth rate in revenue per user. This rate increased by 28% in the third quarter to a historic high of $ 2.73, further improving the social media company’s ability to generate revenue from its user base.

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