DocuSign's (NASDAQ:DOCU) never-ending uptrend that began in March earned the company a spot on the NASDAQ-100 index. Valuations are unfavorable but strong electronic document signing demand will send this stock higher.
In the antivirus protection space, CrowdStrike (NASDAQ:CRWD) shares rallied after its earnings report on June 2. The company reported Q1 revenue soaring 85% to $178.1 million. Core subscription revenues rose 89%. The growth is in stark contrast to BlackBerry (NYSE:BB), whose Cylance product does not enjoy the same growth.
CrowdStrike, like Docusign, trades at unfavorable valuations. Still, markets are willing to pay a premium in these hot stocks on anticipation of growth picking up pace from previously reported rates. Crowdstrike has a healthy cash balance of $1.005 billion. Its Q2 guidance suggests a net loss of between $3.8 million and $0.7 million. As the company achieves profitability, the stock’s uptrend should continue throughout this year.
Cardlytics (NASDAQ:CDLX) is a potential winner, even though revenue grew "just" 26.5% to $45.51 million. The company is working with hotel and retail firms to help them understand their customer’s buying patterns. By offering unique services, the stock is a compelling long-term hold, especially if the stock dips to pre-breakout levels in the $50 - $55 range
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