3 Tech Stocks With More Potential Than Any Cryptocurrency

Three tech stocks are safer investment options and have more potential than Bitcoin and other cryptocurrencies.

| More on:
A worker uses the cloud for paperless work. tech

Source: Getty Images

The collapse of cryptocurrency exchange FTX in early November 2022 harmed cryptos. However, Bitcoin is up 46.4% year to date, and some investors say the largest crypto trades like a tech stock.

Meanwhile, the technology sector suffered a severe selloff last year but is doing better thus far in 2023 with a +13.55% positive gain. But if I were to choose between tech stocks and any other crypto, I wouldn’t touch the latter with a 10-foot pole.

Tech firms like Descartes Systems Group (TSX:DSG), Kinaxis (TSX:KXS), and Docebo (TSX:DCBO) are safer and certainly have more potential. They have financials and business projections to show.

Solid platform for growth

Descartes provides on-demand, Software-as-a-Service (SaaS) solutions to logistics-intensive businesses to help them improve productivity, performance, and security. The $8.76 billion company reported impressive top- and bottom-line growth in fiscal 2023.

In the 12 months that ended January 31, 2023, revenue and net income increased 14.4% and 18.4% to US$486 million and US$102.2 million versus fiscal 2022. Edward J. Ryan, Descartes’s chief executive officer (CEO), said the company invests in its Global Logistics Network. He added, “We invest both organically and through acquisitions consistent with customer feedback on how we can deliver more value to them.”

For fiscal 2024, management anticipates adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) to be 40-45% of revenues. Its chief financial officer Allan Brett said Descartes has a solid platform for continued growth and acquisitions. Moreover, it has the experience and capital capacity to add more solutions for the growing community of shippers, carriers, and logistics services providers. At $102.95 per share, current investors enjoy a 9.07% year-to-date gain.

Increased profitability

Kinaxis had an incredible turnaround in 2022, exceeding total revenue and adjusted EBITDA targets. Also, besides growing its customer base by 40%, profit reached US$20.08 million compared to the US$1.16 loss in 2021.

This $4.59 billion supply chain management company will continue to invest for the long term and cement its leadership position. Management also expects faster SaaS growth and increased profitability in the coming years.

Performance-wise, the tech stock is up 10.24% year to date. Market analysts covering KXS recommend a buy rating. The 12-month average price target is $218 — a potential 30% appreciation from its current share price of $167.46.

This $4.59 billion supply chain management company will continue to invest for the long term and cement its leadership position. Management also expects faster SaaS growth and increased profitability in the coming years.

Focus on long-term growth

Docebo endured the macroeconomic headwinds in 2022 and delivered a strong performance. The $1.68 billion company boasts a leading artificial intelligence (AI)-powered learning platform. In the 12 months that ended December 31, 2022, total revenue (subscription and professional services) climbed 37% year over year to US$142.91 million.

The net income topped US$7 million compared to the US$13.6 million net loss in fiscal 2021. Claudio Erba, Docebo’s founder and CEO, said, “Our focus remains on driving long-term growth and profitability across economic cycles, supported by continued innovation.” If you invest today, the share price is $51.08 (+14.2% year to date).

No predictable path

While Bitcoin and other cryptos are tradable assets like tech stocks, they still lack regulation. More importantly, there’s no predictable path for the foreseeable future, unlike Descartes, Kinaxis, or Docebo.    

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Christopher Liew has no position in any of the stocks mentioned. The Motley Fool recommends Bitcoin, Descartes Systems Group, Docebo, and Kinaxis. The Motley Fool has a disclosure policy.

More on Tech Stocks

Circuit board with a microchips
Tech Stocks

3 Promising AI Stocks That Are Cheaper Than Nvidia

Nvidia is positioned to outpace the broader markets in the future. But these three AI stocks may have higher upside…

Read more »

Young woman sat at laptop by a window
Tech Stocks

Could Docebo Stock Reach $200?

Down 55% from all-time highs, Docebo stock trades at a discount to consensus price target estimates in 2024.

Read more »

potted green plant grows up in arrow shape
Tech Stocks

2 Stocks Under $50 That Could Double Your Money in 5 Years

Growth stocks can help you double your money in the next five years. And you don’t need hundreds of dollars…

Read more »

A bull and bear face off.
Tech Stocks

Bull Market Buys: 1 Top Tech Stock to Own Right Now

Down 40% from all-time highs, Datadog stock trades at a discount to consensus price target estimates in 2024.

Read more »

Money growing in soil , Business success concept.
Tech Stocks

The Smartest TSX Growth Stocks to Buy in July 2024

If you are looking for some smart growth stocks, here are four to look at right now.

Read more »

Man data analyze
Tech Stocks

Is Shopify Stock’s Growth Sustainable?

There's a reason Shopify stock (TSX:SHOP) has been getting analyst upgrades, and investors should be paying attention.

Read more »

Shopping and e-commerce
Tech Stocks

3 Reasons to Buy Shopify Stock Like There’s No Tomorrow

Shopify (TSX:SHOP) stock jumped in share price from a stellar upgrade, but more is certainly on the way for the…

Read more »

Person uses a tablet in a blurred warehouse as background
Tech Stocks

Check Out This Soaring Stock, Up 29% From 52-Week Lows, With More Gains Likely to Come

This top tech stock is now up 29% from lows, but still down 12% in the last year. And it…

Read more »