Disruptive tech stocks are everywhere these days. Artificial intelligence (AI) is the big one, but far from the only one. Cryptocurrencies, cybersecurity, electric and autonomous vehicles, cloud computing, robots, wearable technology, even flying cars are all in development. These technologies have the potential to alter how we live in the future.
For investors, the opportunity is huge. An allocation of capital in the right start-up company or technology play now could lead to riches in years to come. The challenge is to bet on the right companies. Choosing stocks of companies that are likely to disrupt and dominate for many years is critically important. Fortunately, clear winners have begun to emerge in several tech sectors.
Here are three disruptive tech stocks, currently under $100 with 500% upside by 2030.
Block (SQ)
Financial technology firm Block (NYSE:SQ) is a dual threat when it comes to disruptive technology. It has both its payments app and growing business focused on crypto and blockchain technologies. The combination has helped Block report strong financial results in recent quarters. While SQ stock is down 4% over the last 12 months and trading at $64 per share, it is likely to rise moving forward as cryptocurrency prices strengthen.
For this year’s first quarter, Block reported that its Cash App business, the mobile payment platform that is popular among small businesses, brought in $1.26 billion in gross profit, a 25% year-over-year increase. Block added that its Cash App monthly active users reached 24 million in March of this year. At the same time, Block said the $220 million it invested in Bitcoin (BTC-USD) had grown 160% to $573 million at the end of Q1 this year.
Palantir Technologies (PLTR)
Palantir (NYSE:PLTR) is a unique company that also deals in disruptive technology, namely data analytics. PLTR stock currently trades at less than $26 a share despite being a big winner so far in 2024. Year-to-date, the stock is up an impressive 56%. Since going public in 2020, Palantir stock has nearly tripled in price. The share price has been steadily gaining ever since the company began posting quarterly profits.
Palantir has now posted a profit for six consecutive quarters, earning the company the trust of analysts and investors. Most recently, PLTR stock pulled back after the company announced weaker-than-expected forward guidance for this year’s just completed second quarter. Palantir, which builds big-data and artificial intelligence (AI) software, issued guidance that calls for Q2 revenue of $649 million to $653 million, which was inline with Wall Street forecasts.
While the latest guidance failed to exceed expectations, Palantir stock appears built for long-term success, especially with the company’s emerging AI opportunity.
Robinhood Markets (HOOD)
Online brokerage Robinhood Markets (NASDAQ:HOOD) is another way for investors to play the cryptocurrency trade. Not only does Robinhood run a stock trading app that is extremely popular with retail investors, but the company is also pushing deeper into crypto trading. Recently, Robinhood announced that it is buying privately held cryptocurrency exchange Bitstamp for $200 million in cash.
The acquisition is the largest deal in Robinhood’s history and moves it further into the trading of crypto. Analysts say the purchase of Bitstamp puts Robinhood in direct competition with the largest cryptocurrency exchanges, notably rival Coinbase (NASDAQ:COIN). Bitstamp’s crypto exchange is already hugely popular in Europe and Asia, offering 85 tradable assets and products such as staking and lending.
HOOD stock has been a huge winner so far this year, rising 84% since January. Yet despite the big gain, Robinhood stock currently trades at less than $23 a share.
On the date of publication, Joel Baglole 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.
On the date of publication, the responsible editor did not have (either directly or
indirectly) any positions in the securities mentioned in this article.
