Technology stocks have a higher beta than the rest of the market, so investors should expect a valuation decline faster than the other sectors. The biggest firms by market capitalization faced notable drops. IBM (NYSE:IBM) fell 12% while Microsoft (NASDAQ:MSFT) dropped by 13.5%.
Investors should look outside of the widely held stocks instead. Nutanix (NASDAQ:NTNX) faces higher uncertainties ahead. The firm posted a non-GAAP loss of 60 cents a share. GAAP EPS widened to a $1.13 loss. The company grew revenue by just 3.4% year-on-year. But the business slowdown in China may end soon. The coronavirus forced China to shut down. Now that business is slowly opening up again, this stock could rebound next.
In Europe and North America, the start of the shut-down and isolation protocol will help Dropbox (NASDAQ:DBX). The file-sharing services firm also offers collaboration solutions. Staff who work from home will need Dropbox services. Plus, the company raised the annual subscription while increasing the storage size for customers.
This will further lift revenue. In the fourth quarter, the firm recorded revenue growing 19% Y/Y. Paying users grew from 12.7 million to 14.3 million. The average revenue per user grew to $125, up from $119.61 last year.
Both stocks are compelling investments for those seeking growth at a discount.
