The market is full of companies that are seeing tremendous growth, but it can sometimes be overwhelming for investors to know which companies are experiencing a temporary boom and which ones are poised for long-term gains.
To help you track down red-hot technology companies that still have plenty of more room to run, we asked a few Motley Fool contributors for some stock ideas. They came back with Cloudflare (NYSE:NET), HubSpot (NYSE:HUBS), and Square (NYSE:SQ). Here’s why.
This stock is on fire, and it won’t quit
Brian Withers (Cloudflare): Cloudflare stock is on a tear. It’s bucked the tech stock malaise and is beating the S&P 500 on a year-to-date basis. But what’s even more impressive is that this market-beating performance is on top of its 345% gains in 2020. But investors haven’t missed the ride, this infrastructure-as-a-service specialist is just getting started.
Let’s start by taking a look at the key metrics for its most recent quarter. Top-line growth, large customer expansion, and dollar-based net retention posted impressive gains year over year. The sequential quarterly increases are signs that it has momentum coming out of the pandemic. Chief information officers have been hesitant to implement new technologies with the scramble to manage connections to its remote workforce, but those fears are starting to wane. The company added a record 8,000-plus paying customers in the quarter,…