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There’s a new wave of tech stocks taking the markets by storm

January 10
10:18 2019

It could be in with the new and out with the old when it comes to technology this year.

While many large-cap tech names have started the year off strong, there’s a wave of smaller, more new-age tech stocks that have seen a huge rally. Companies like TwilioEtsySquareRoku and Dropbox have soared, with many up double digits in the first few trading days of 2019.

And Todd Gordon, founder of TradingAnalysis.com, said that there are three of those names you want to buy.

The first is Twilio, up 7 percent so far in 2019. Gordon considers the cloud communications company one of his favorites in his portfolio, and believes that it’s a good sign that Twilio is “just hanging on right towards the highs” despite all the volatility in the market as of late.

The same applies to Etsy. According to Gordon, there is “a ton of strength” in the e-commerce company based on how the stock has performed relative to the market, and he sees the name possibly pushing through its old highs.

Finally, Gordon believes Square could be set for a breakout. Unlike Twilio and Etsy, Gordon points out that rather than a consolidation, the chart for the payments company seems to have moved in more of a downtrend channel. However, “if you can get more of a pop through there, then Square could do a little catch up on the upside,” Gordon said Tuesday on CNBC’s “Trading Nation. ”

Erin Gibbs of S&P Global, however, believes that of the three Square is the best bet. While Gibbs thinks that generally many of these smaller-cap new-age tech names look a little too volatile, she believes that Square’s valuation and its history of beating earnings benefits the stock from a fundamental standpoint.

Continue Reading at CNBC

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