3 Top Tech Stocks That Growth Investors Should Be Buying
You need to invest in high-growth tech stocks such as Snowflake, Sea Limited, and Twilio as they can potentially outpace the broader markets
Nov. 23, 2021

The technology sector remains a good bet for investors looking to create long-term wealth. Companies in this highly disruptive industry generally have an asset-light model that can benefit from high operating leverage. Here, we look at three top tech stocks in Snowflake (NYSE: SNOW), Sea Limited (NYSE: SE), and Twilio (NYSE: TWLO) and analyze why they need to be part of your growth portfolio today.

1. Snowflake

A company valued at a market cap of $107 billion, Snowflake provides a cloud-based data platform for enterprises. Snowflake has grown its top-line at a stellar pace and has increased revenue from $96.66 million in fiscal 2019 to $592 million in fiscal 2021 that ended in January. 

Wall Street expects sales in fiscal 2022 to almost double to $1.15 billion while its forecast to grow by 64% to $1.88 billion in fiscal 2023.

The company ended fiscal Q2 with a customer base of 4,990, which was 60% higher than the year-ago period. Comparatively, the number of customers that spend more than $1 million each year on the Snowflake platform rose by 107% to 116. Snowflake's net retention rate in Q3 stood at 169%, suggesting existing customers increased spending by 69% in the last year.

The company's gross margin has increased to 73%, up from 63% in the year-ago period. This expansion in profitability will allow Snowflake to post a positive free cash flow by the end of fiscal 2022.

Snowflake continues to spend heavily on sales and marketing as it is looking to rapidly expand its customer base, which will drive top-line growth higher in the future.

2. Twilio

A cloud communications company, Twilio is valued at a market cap of almost $50 billion. In the third quarter of 2021, Twilio reported sales of $740 million which were 65% higher than the year-ago period. It ended Q3 with 250,000 active customer accounts and a net dollar retention rate of 131%.

Twilio emphasized that its top 10 customers account for just 11% of revenue in Q3 of 2021, down from 15% in Q2 of 2020.

The company has increased sales from $399 million in 2017 to $1.76 billion in 2020. Wall Street expects sales to grow by 57% to $2.77 billion this year and rise by another 32% to $3.65 billion in 2022.

Twilio stock has returned close to 1,000% since its IPO in June 2016 but is also down 37% from record highs, allowing you to buy the dip.

3. Sea Limited

One of the largest e-commerce companies in Asia, Sea Limited also derives revenue from high-growth verticals such as gaming and fintech. 

SE stock was listed on the NYSE in October 2017 and has since returned a staggering 1,740% to investors in the last four years, easily dwarfing the broader markets.

Despite these market-thumping gains, Sea Limited has enough room to keep outpacing its peers as the company is forecast to end 2021 with $9.16 billion in sales, indicating an annual growth rate of 106% since 2018.

Like most other growth stocks, Sea Limited remains unprofitable as it sacrifices the bottom line for revenue growth. But Wall Street expects its loss per share to narrow from $2.78 in 2020 to $1.01 in 2022.

Are you looking for that right company to kickstart your portfolio? Look no further than MyWallSt, where our shortlist of market-beating stocks will take you to the next level. Don't believe us? Why not get free access today?

Top Ten Stocks To Buy Now
Commit to your future wealth today and join 1000s of subscribers receiving:
  • New stock picked every week out of 60,000 worldwide
  • Ten Foundational stocks to hold until 2034
  • A library of 60 stocks with analysis
  • 10 year Track record of performance
By submitting your email address, you consent to us keeping you informed about updates to our website and about other products and services that we think might interest you. You can unsubscribe at any time. Please read our Privacy Policy and Terms of Use.

The Home of Successful Investing.

© 2024 MyWallSt Ltd. All rights reserved.







This website is operated by MyWallSt Ltd (“MyWallSt”). MyWallSt is a publisher and a technology platform, not a registered broker-dealer or registered investment adviser, and does not provide investment advice. All information provided by MyWallSt Limited is of a general nature for information and education purposes, and you should not construe any such information as investment advice. MyWallSt Limited does not take your specific needs, investment objectives or financial situation into consideration, and any investments mentioned may not be suitable for you. You should always carry out your own independent verification of facts and data before making any investment decisions, as we cannot guarantee the accuracy or completeness of any information we publish and any opinions that we publish may be wrong and may change at any time without notice. If you are unsure of any investment decision you should seek a professional financial advisor. MyWallSt Limited is not a registered investment adviser and we do not provide regulated investment advice or recommendations. MyWallSt Limited is not regulated by the Central Bank of Ireland. MyWallSt Limited may provide hyperlinks to web sites operated by third parties. Your use of third party web sites and content, including without limitation, your use of any information, data, advertising, products, or other materials on or available through such web sites, is at your own risk and is subject to the third parties' terms of use.