The stock market has gotten off to a solid start in 2024 with the S&P 500 index already up by close to 8% and setting new highs, and the good part is that the market could keep rising thanks to a strong U.S. economy and receding inflation.
Technology stocks, in particular, could have another solid year on the back of catalysts such as artificial intelligence (AI). It is worth noting that the Nasdaq-100 Technology Sector index has jumped by more than 62% in the past year, so it may be difficult to find bargains in this sector. But if you have $1,000 to spare after paying your bills, saving enough for a rainy day, and paying off high-interest debt, you may want to use that investible cash to buy one share of each of these two tech companies that look like solid buys right now based on their long-term prospects.
1. Twilio
Cloud communications specialist Twilio (NYSE: TWLO) may look like a surprising buy recommendation considering that it has underperformed the stock market in the past year, losing 18% of its value. There was more bad news for Twilio investors when the company released its fourth-quarter results last month.
Though it beat expectations for the quarter and its revenue for the year rose 9% to $4.15 billion, management failed to provide full-year guidance for 2024. The company is carrying out an operational review of its customer data platform business, known as Segment, and says it plans to issue the 2024 guidance this month once that review is complete.
However, a closer look at Twilio’s guidance for the current quarter indicates that this is going to be a difficult year for the company. It expects just 2% to 3% revenue growth in the quarter to $1.03 billion. Twilio has also guided for adjusted earnings of $0.58 per share at the midpoint, which would be a 23% jump from the prior-year period. For comparison, Twilio’s full-year earnings increased to $2.45 per share in 2023 from just $0.15 per share in 2022, driven mainly by its cost-cutting moves.
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The relatively slower growth forecast for 2024 explains why some investors have been selling…
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