These 3 technological stocks are building the future


The future of tech is already here, as rapidly growing tech companies disrupt the way business is done and people interact with the world around them.

While many companies claim to be at the forefront of the change we are seeing and the technology we will use tomorrow, the three tech stocks below are truly building the future. Let’s see how they are transforming their businesses, their industries and the way we will live.

Image source: Getty Images.

Charging points

Global purchases of electric vehicles are expected to quintuple to reach 10 million by 2025, and with major automakers like Ford and DG promising to have most or all of their fleets electrified by the middle of the next decade – not to mention electric vehicle makers such as You’re here acceleration of production – the need for a charging infrastructure Charging points (NYSE: CHPT) deploys will be essential for future trips.

ChargePoint was just made public earlier this year through a merger with a Special Purpose Acquisition Company (SPAC). But it has been in business since 2007 and has a leading presence in North America and Europe, although the United States is its primary market with 89% of its revenue generated here. It plans to continue its global expansion and is in the process of acquiring the German provider of charging station software, has.to.be eMobility.

Revenue is growing rapidly, up 61% last quarter from a year ago, but with 91% higher network charging revenue. It’s an impressive growth story, and while the competition in space is fierce, it’s the only one of its main rivals that seems to spend on future innovation.

ChargePoint spent $ 69.5 million on research and development in 2020, while EVgo and Flashing load show no R&D expenditure. ChargePoint appears to be heading headlong into the future today.

Man with smartphone doing cash transactions.

Image source: Getty Images.

Square

Square (NYSE: SQ) has made a name for itself developing point-of-sale devices for merchants, a company that still has huge growth prospects due to the ecosystem Square has created through the addition of analytics and even small business loans. But it can be argued that the future may well be decided by the construction of Square Cash App’s peer-to-peer payment platform.

Square has improved the system to be more than just a way to transfer money between friends or pay for goods and services – users can now invest through Cash App.

Earlier this year, during the stock trading frenzy, Cash App was a major beneficiary of the Robin Hood brokerage limiting the trading of shares as AMC Entertainment and GameStop. Investors were so angry that they were barred from trading that they opened new accounts elsewhere, mostly on Cash App.

Both channels generate huge profits for Square. In the second quarter, its sellers segment increased gross profit 85% to $ 585 million while Cash App grew 94% to $ 546 million.

With its acquisition of Tidal, a global music and entertainment platform, Square is able to create another source of revenue and profit for the future.

Couple talking with a financial advisor

Image source: Getty Images.

Holdings reached

Holdings reached (NASDAQ: UPST) is another tech stock that’s giving the familiar a new twist for the next generation of users. FinTech is updating the online loan application process with artificial intelligence to make loan opportunities more accessible to more people at a lower cost.

Most of Upstart’s loans have been unsecured personal loans, an area that could pose a significant risk of default. By running applications through its AI decision-making process, they are measured against over 1,000 data points. Upstart is also starting to use the system to provide auto loans and wants to take out student loans, credit cards, mortgages, and home equity lines of credit.

This could offer significant rewards for Upstart, as it says the rigorous verification process it submits to claims reduces loss rates for lenders. This seems to be confirmed by the loans he has made. While the fair value of its loans increased by more than 5% in the last quarter, expected credit losses only increased by just over 3%.

Overall, revenue increased by 1,018% in the last quarter compared to a year ago, as commission income jumped 1,300% on originations of loans through its banking partners, increasing by more than 1,600 % year over year.

AI, machine learning, and deep learning are revolutionizing the way decision-making is made. Upstart Holdings applies this to the loan generation process, which seems to be how all of these decisions will be made going forward.

This article represents the opinion of the author, who may disagree with the “official” recommendation position of a premium Motley Fool consulting service. We are motley! Challenging an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.


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