2 Tech Stocks to Buy Ahead of Earnings
A lot of investors have a rule about not buying or selling stocks during earnings season. Why? Because there is an opportunity for volatility in either direction. Companies can exceed or miss expectations, and the stock has a chance to move higher or lower in a relatively unpredictable fashion. Buying ahead of earnings usually implies you are anticipating a move higher.
So this can be seen as a bit of a gamble. It isn’t investment advice remember, but rather a way to get ahead of market movement. You have to be okay with owning the stock for the long term, especially if the reaction from the earnings call does not go in your favour. Here are two stocks that you can consider ahead of their earnings calls.
I’ve written about Crowdstrike before as a stock to own because of its position as the leader in the global enterprise cybersecurity industry. While the stock has lost about 36% over the past year, it is up by 28% so far in 2023. You might have missed buying the biggest part of the dip, but that’s okay. I expected Crowdstrike to be a good investment for years to come.
While most people are aware of its strong cybersecurity network, all the company needs to do at its earnings call in early June is utter the words Artificial Intelligence. Yes, the hottest new trend this year is something Crowdstrike already excels in. Its Falcon cybersecurity platform already uses AI and machine learning to build a stronger mesh of security points every day. With advancements in AI, Crowdstrike’s platform should only get stronger. With a focus on cloud security and data protection, an influx of AI software across multiple industries will also mean a higher demand for the best security platforms. Crowdstrike should be a major player in the AI world without most people even realizing it, yet.
Airbnb (NASDAQ: ABNB)
Airbnb was hit with a short report by Bear Cave earlier this month, but the stock has since clawed back most of those losses. The report suggested that Airbnb has become a platform that mostly services professionally managed apartment facilities. It also suggests that once these companies learn the system, they build their own networks to compete with Airbnb. It wasn’t the strongest short-seller report, and here’s why.
Since the report was released, Airbnb has teamed up with a couple of the largest real estate investment companies in the world in Starwood and Greystar. These two companies own $115 billion and $62 billion respectively in real estate assets under management. Airbnb looks to be moving in the direction of long-term rentals as well which should only expand its revenue streams. Since last year, Airbnb has trimmed its staff and is coming off of its first profitable year as a company. Rather than a company that is competing with others, Airbnb looks like a brand that is firing on all cylinders, especially with global travel demand at its highest point in years.