Head of Corporate at VG Global Holdings
(Published 08 July, 2023)
One of the best ways to choose investment targets is to simplify the process by judging what is known as “relative strength”. This basically compares the performance of a company’s stock against the general market, so if the NYSE Index is down by 6%, but the stock price of a company you are interested in is only down by 1%, then that company is worth looking at. On that basis, here are my 2 picks to take a look at right now.
MongoDB (MDB): MongoDB’s Atlas Platform allows the user to streamline the process of creating AI-powered Apps, and, since AI is so revolutionary and fast-growing, it is certain that more AI-based applications will keep on appearing and coming on to the market. The company recently announced that it would partner up with Alphabet’s Google Cloud to launch an AI initiative, and it is also riding the AI wave by helping customers such as General Electric, Toyota, and Verizon to develop AI-related products. Its earnings call in early June was a game-changer for the company as earnings per share jumped 180%, while revenue shot higher by 29% year-over-year, and its shares shot higher up still by 28% on daily volume, quadrupling the norm which is a sign of institutional accumulation.
Datadog (DDOG): This company provides a monitoring and analytics platform for developers, IT operations teams, and business users in the cloud sector, and it is another highly ranked software stock and Wall Street darling which is set up for higher prices. It is showing impressive growth and it has grown each year since going public – last quarter, its revenue jumped 33% while earnings rose by 17% year-over-year. The company will always benefit when enterprises install their software and services across a wide range of computing platforms, and, since monitoring these applications can be laborious and extremely time-consuming, more and more companies will turn to Datadog.
Both of these companies are showing relative strength, they have solid fundamentals, and they occupy a great place in their relative sector which guarantees more growth and more revenue increases in the future.