Tech stocks: These high-flyers could benefit disproportionately from the turnaround

Now is the time to start collecting cheap tech stocks? Of course, you can only really answer that in retrospect, in principle there could of course also be another, volatile phase. However, many stocks in this segment are still rather inexpensive and have corrected significantly in some cases.

So, with the abundance of tech stocks in mind, time to take a look at the whiz kid of tomorrow. In any case, I believe that Etsy and Teladoc Health could potentially benefit disproportionately. Here’s a look at the factors that are likely to be relevant.

Tech Share: Etsy Is Expanding The Ecosystem!

One of the first tech stocks that has recently come under heavy fire is that of Etsy. The reason for this is a forecast, slower growth in the second quarter. After a clear three-digit growth in sales in the first quarter, sales in the second quarter should only grow by 15 to 25%. A possibly unfavorable comparison value with a view to the COVID-19 year 2020 is the trigger for this.

Maybe growth will slow down a little now, but maybe not. In any case, the management behind Etsy recently announced an interesting takeover. The e-commerce player has therefore bought Depop, which could possibly accelerate inorganic growth this year. At the same time, Etsy is entering the second-hand fashion market, which is a clear growth market for Depop.

The tech share Etsy therefore still offers a lot of potential in e-commerce. Both with a view to the core market of self and handmade goods, as well as with the help of acquisitions. That, too, could be a way of realizing the total market potential, which the Etsy management estimates at a total of $ 1.7 trillion. There seems to be no end in sight to this growth story.

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Teladoc Health: That shouldn’t have been it yet!

A second tech stock that is nowhere near that is also that of Teladoc Health. Quite a few investors were recently bothered by the fact that the number of visits in the first quarter rose by only 56% to 3.2 million. Perhaps a sign that growth is slowing down here too. Whereby there is still a clear double-digit increase.

However, there may also be a wrong focus here. Ideally, the Teladoc Health share is not just about growth in volume, although that is of course significant. No, qualitative growth should also be decisive. In particular, with the takeover of Livongo Health and more momentum among existing users for telemedical solutions, it could become clear that the digital health specialist is preparing to benefit from a huge overall market potential.

The tech share Teladoc Health should therefore target a gigantic market with a view to qualitative growth. Individual, weaker quarters or even possible competition from other tech players could be of secondary importance with regard to the market potential alone. Especially since the share has now plummeted by around 50%, which could show a nice discount. Or maybe even a margin of safety.

The article Tech-Aktien: These whiz kidnappers could benefit disproportionately from the turnaround first appeared on The Motley Fool Germany.

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Vincent owns stocks in Etsy and Teladoc Health. The Motley Fool owns shares of and recommends Etsy and Teladoc Health.

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