It’s been a tough year for everyone in the markets and so naturally investors might begin to look at cheaper stocks. Remember, just because a stock is trading below $10.00, it does not mean it is a good deal. There has been a long list of companies that have seen their stock price slide by 70% or more in 2022 and it’s hard to call those good investments even now. But of course, there are also some cheaper stocks that continue to expand their business and position themselves for growth, even in this challenging economy.
Each of these stocks has had a positive catalyst in recent weeks and I love the potential for them to rebound in 2023. Here are two $10 tech stocks I’ll have my eye on as we turn the calendar over for another year.
Palantir (NYSE: PLTR)
Palantir continues to be a very polarizing stock amongst investors. Some think that this company could be the future of data analytics and remain supportive even as Palantir struggles to become profitable. The other half of investors are skeptical that Palantir is nothing more than a government contractor trading at a high multiple. To be fair, both views are kind of true about Palantir.
Earlier this week, the company announced a massive new five-year contract with the CDC worth $400 million. As we pick up the pieces following the COVID-19 pandemic, government health agencies are looking to use the data we collected to better predict a potential outbreak in the future. On top of that, the threat of war has also renewed interest in Palantir from both the American government and foreign ministries. Even at a share price of just over $7.00, Palantir is still trading with a forward-looking PE ratio of 43. Growth is expected, but remember Palantir isn’t a new company. Palantir will celebrate its 20th anniversary next year and with each passing quarter, shareholders are getting a little more impatient about a lack of profitability. It’s not a buy, but the fact that Palantir continues to sign deals is definitely intriguing.
Marqeta (NASDAQ: MQ)
Marqeta is a fintech company that focuses on issuing credit cards for businesses like banks or company-specific payment programs. The company finds its stock down by about 64% so far in 2022, and like Palantir, had a much-anticipated IPO that fizzled out back in June 2021. This week, Marqeta announced that it is integrating Mastercard’s (NYSE: MA) machine-learning technology Track Instant Pay into its Mastercard-supported credit cards.
This is a deal that helps support Marqeta’s enterprise customers that rely on their cards for business operations. It also shows that Marqeta is a company on the cutting edge of payments technology, and is not shy about incorporating things like artificial intelligence into its digital payment services. When it comes to tech companies I like to see this sort of innovation and collaboration with other major brands. The move also comes on the heels of several other partnerships between the two companies including the Uber Pro Card which allows Uber ($69.31|-0.07%) drivers to earn higher cash-back rates on fuel purchases or EV Charging.
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