Tech
2 tech stocks that could be worth the investment
Investors are strongly attracted to technology stocks for their potential for growth and innovation.
Leading technology companies are at the forefront of advances in artificial intelligence (AI), cloud computing and digital transformation, revolutionizing multiple industries.
While tech stocks can be volatile in the short term, they have proven to be solid long-term investments. Smaller tech companies with lower valuations can be an even bigger boon to investors looking for potentially undervalued opportunities.
CrowdStrike Holdings (NASDAQ:CRWD)
CrowdStrike Holdings, a leader in AI-powered cybersecurity since launching the Falcon platform in 2013, has seen one of the stock market’s most notable gains over the past year, rising 160.91%. This result earned CrowdStrike a place in the S&P 500 Index, as its market capitalization rose from $61.31 billion to $92.99 billion.
In Q1 2025, CrowdStrike added $212 million in annualized net recurring revenue (ARR), reaching a total ARR of $3.65 billion, representing a 33% increase year-over-year. The company’s free cash flow increased 42%, and operating margin increased from 5% to 22% on $199 million in operating income.
Amazon (NASDAQ:AMZN)
Amazon has evolved from an e-commerce pioneer into a technology giant that uses artificial intelligence to optimize its business model. This transformation has caused Amazon’s stock price to rise more than 20% this year, reaching record highs in May.
Amazon’s strong financial results underline its growth potential. In the first quarter of 2024, the company reported a 216% year-over-year increase in earnings per share (EPS) to $0.98, and sales increased 13% to $143.3 billion. Amazon Web Services (AWS), its cloud computing division, reported a 17% increase in revenue to $25 billion, cementing its role as a profit driver.
Strategic investments in AI and cloud services have strengthened Amazon’s market position. A $4 billion investment in AI startup Anthropic and the development of generative AI services through AWS are expected to drive growth. These initiatives put Amazon at the forefront of technology innovation and infrastructure modernization.
Conclusion
With strong financial results and strategic investments in artificial intelligence and cloud services, these technology stocks offer promising growth potential. However, investors should remain cautious and conduct thorough research, taking into account the inherent volatility and potential risks associated with technology stocks.