Are These Consumer Tech Names Good Stocks To Buy Right Now?
With growth stocks seeing signs of potential recovery in the stock market today, some would argue that consumer tech stocks are a viable option to turn too right now. Sure, most of the top players in this industry would fall under the growth stocks banner. However, it is important to remember that consumer tech is becoming an increasingly crucial aspect of day-to-day life for many. From companies like Apple (NASDAQ: AAPL) with considerable pricing power to entertainment names like Roblox (NYSE: RBLX), this is evident.
At the same time, there remains no shortage of exciting developments in the consumer tech world as well. Notably, there is plenty of buzz around the ongoing sale of Twitter (NYSE: TWTR) to Tesla (NASDAQ: TSLA) CEO Elon Musk. According to an update from Musk, the deal is currently on hold “pending details supporting calculation that spam/fake accounts.” As a result of the $44 billion deal being put on pause, TWTR stock would be on investors’ radars today. Should all this have you keen to jump on the top consumer tech stocks, here are five to know in the stock market now.
Consumer Tech Stocks To Buy [Or Sell] In May 2022
- Affirm Holdings Inc. (NASDAQ: AFRM)
- Robinhood Markets Inc. (NASDAQ: HOOD)
- Duolingo Inc. (NASDAQ: DUOL)
- Poshmark Inc. (NASDAQ: POSH)
- Qualcomm Inc. (NASDAQ: QCOM)
Affirm Holdings Inc.
Affirm is first up on our list of top consumer tech firms to consider today. In brief, it is a fintech firm that specializes in providing buy-now-pay-later (BNPL) solutions. Through BNPL, consumers can make larger purchases and pay for their scheduled payment plans. For today, investors are likely tuning in to AFRM stock following the company’s latest quarterly earnings release. In it, Affirm reported a total revenue of $354.8 million. To compare, the Wall Street consensus was at $344 million.
At the same time, Affirm is also extending its current collaboration with Shopify (NYSE: SHOP). Because of this, the company will continue to serve as Shopify’s exclusive BNPL service provider. For those uninitiated, all this is possible via integrations between Shop Pay Installments and the Affirm Adaptive Checkout system. According to Shopify, this financing product is a first of its kind. Namely, this is because it offers both biweekly and monthly payment options to consumers via a single integrated checkout interface. As such, would AFRM stock be a buy for you today?
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Robinhood Markets Inc.
Another consumer tech company to note now would be Robinhood Markets. Overall, the company is a major presence in the consumer stock trading business. Among Robinhood’s key draws would be its commission-free trades of stocks, exchange-traded funds, and cryptocurrencies. All of which it brings to consumers via an easy-to-use mobile app. For consumers looking to get into the stock market, Robinhood could be among the go-to’s today.
Despite seeing a decrease in overall trading activity for the quarter, HOOD stock seems to be gaining momentum today. On the whole, this could be due to several key developments from yesterday. Firstly, Citi (NYSE: C) analyst Jason Bazinet notes that Robinhood could be worth $15 per share via a takeover. Bazinet cites the “drop in HOOD’s equity value,” as a reason for takeover interest to grow. Secondly, according to an SEC filing, FTX CEO Samuel Bankman-Fried now holds a 7.6% stake in Robinhood. Because of all this, HOOD stock could be looking at exciting times ahead. Would you say the same?
Next up, we have Duolingo, a leading mobile learning platform that offers courses in over 40 languages. It also boasts over 45 million monthly active users. In fact, it has over 500 million downloads and has organically become the world’s most popular way to learn languages. Accordingly, it is also the top-grossing app in the education category on both Google Play and Apple App Store. On Thursday, the company reported its first-quarter financials for 2022.
Diving in, total bookings were $102.1 million, an increase of 55% year-over-year. Furthermore, subscription bookings were $78.5 million for the quarter, an increase of 56% year-over-year. The company also saw its monthly active users (MAUs) grow by 23% to 49.2 million. All in all, total revenues for the quarter were $81.2 million, an increase of 47% year-over-year. The company saw all metrics performing well this quarter and it also continues to accelerate user growth, record quarterly bookings, and post strong margins. All things considered, is DUOL stock worth investing in right now?
Poshmark is a social commerce marketplace for users to buy and sell clothing and apparel. Its e-commerce platform has a community of more than 80 million registered users across the globe and continues to drive the future of commerce while promoting more sustainable consumption. On May 12, 2022, the company reported its first-quarter financials for 2022. Gross merchandise value for the quarter was $493.4 million, an increase of 12% year-over-year. Net revenue was $90.9 million, increasing by 13% year-over-year.
It also ended the quarter with $596.6 million in cash and cash equivalents. Besides, the company continues to welcome new brands to the platform. Brand closets GMV during the first quarter grew by 2.5x compared to the previous quarter. “We continue to innovate for both buyers and sellers and completed the rollout of our Shop by Trend feature as well as a redesign of our feed and shop tabs during the first quarter,” said Manish Chandra, Founder and Chief Executive Officer of Poshmark. “Our investments in product innovation and marketing contributed to record Active Buyer growth to 7.8 million in the first quarter, up 16% from the same period last year.” With this piece of information, is POSH stock worth adding to your portfolio?
Lastly, we have Qualcomm, a multinational tech company that creates processors for many of the smartphones that are being used today. In fact, it is a leading wireless technology innovator and also the driving force behind the expansion of 5G. It also brings the benefits of mobile to new industries like automotive and computing. On May 10, 2022, the company unveiled an expanded roadmap of cutting-edge 5G and edge-AI robotics solutions.
This comes with the introduction of the Qualcomm Robotics RB6 Platform. Qualcomm Technologies’ latest advanced edge-AI and robotics solutions will support the creation of more productive, autonomous, and advanced robots. The solutions will also help unlock new commercial realities including autonomous mobile robots (AMRs), delivery robots, highly automated manufacturing robots, collaborative robots, UAM aircraft, industrial drone infrastructure, autonomous defense solutions, and beyond. Given this piece of news, is QCOM stock worth buying?