Fastest Growing Technology CompaniesWritten by Ophir Gottlieb
In an aging bull market with stretched valuations there is one antidote to a market pull back. That antidote is growth.
The market has for a while now placed an enormous premium on growth and an equally, if not harsher, punishment on missed growth. Let's look at the technology sector and see which firms are growing revenue the fastest in the last year.
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Let's start with tech firms that have market caps above $50 billion and we will rank them on a scatter plot by one-year revenue growth percent.
It should come as no surprise that the fastest growing mega cap technology company is Facebook. What may indeed surprise us is that BIDU and BABA, China's two darlings, show the second and fourth largest revenue growth year-over-year, respectively.
One of the great gems in the radio frequency space, AVGO, comes in at numbe two, athough most of that out-sized growth comes from acquisition and merger.
Finally, surprise number five comes from Amazon (AMZN) -- and yes, Apple, is the sixth fastest growing mega cap technology firm.
But of course, there's an entire population of technology companies with smaller market caps. Let's look at market caps between $12 billion and $25 billion, below.
NTES tops the chart, and brace yourself now, the most hated stock in the world, Twitter, is growing faster than all but one other technology company in this peer group. Remember, there is a difference between user growth, which Twitter lacks, and revenue growth, which Twitter has a lot of.
Let us also not forget that Twitter just announced it will open up its advertising (revenue) engine to its 500 million monthly non-logged users (compared to its 320 million logged in users). The full research report on Twitter's surprise announcement is also available in CML Pro.
Peeking down the list a bit further, we see a phenomenal cyber security stock PANW and one of Apple's heaviest suppliers and most important technology companies in the world, SWKS.
THE REAL WINNERS
Revenue growth is a symptom not a cause. It occurs when companies find themselves in the enviable position of product adoption.
But, true revenue growth, the kind that turns companies from small caps into mega caps, the kind that sees stocks double, triple or even quadruple in stock price, that only occurs when two magical phenomena collide:
First, companies find themselves in exploding thematic shifts in technology -- this is when we hear terms like "disruptive." Second, these firms become the leaders in the already colossus forward momentum of these themes.
To find the 'next Apple' or 'next Google' we have to get ahead of the curve. This is what CML Pro does. Our research sits side-by-side with Goldman Sachs, Morgan Stanley and the rest on professional terminals, but we are the anti-institution and break the information advantage the top .1% have.
Each company in our 'Top Picks' is the single winner in an exploding thematic shift like artificial intelligence, Internet of Things, drones, biotech and more. In fact, here are just two of the trends that will radically affect the future that we are ahead of:
The Internet of Things (IoT) market will be measured in trillions of dollars as of next year. CML Pro has named the top two companies that will benefit. Then there's cyber security:
Market correction or not, recession or not, the growth in this area is a near certainty, even if projections come down, this is happening. CML Pro has named the single best cyber security stock to benefit from this theme.
These are just two of the themes we have identified and this is just one of the fantastic reports CML Pro members get along with all the visual tools, the precious few thematic top picks for 2016, research dossiers and alerts. For a limited time we are offering CML Pro at a 90% discount for $10/mo. with a lifetime guaranteed rate. Join Us: Get the most advanced premium research delivered to your inbox along with access to visual tools and data that until now has only been made available to the top 1%.
Thanks for reading, friends.