Shares in these companies have soared this year.
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Technology stocks continue to be popular, and there are a lot of great options to choose from right now. Anything related to cybersecurity, cryptocurrency, social media, and artificial intelligence (AI)artificial intelligence) have caught the attention of investors and analysts, causing the stock prices of these companies to soar.
Additionally, many tech stocks have skyrocketed since the current bull market began in late 2022. However, investors still have the opportunity to buy into strong tech stocks and push their prices even higher. Many tech stocks that have performed well in recent months are expected to continue to rise in the future.
So let's take a closer look at three of the smartest tech stocks to buy right now with $5,000.
CrowdStrike Holdings (CRWD)
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Cybersecurity remains a hot area of technology. CrowdStrike Holdings (Nasdaq:CRWD) is our top pick. The company's stock has proven to be a long-term winner. It's up 56% this year, 172% in the past 12 months, and 500% since it went public five years ago. CRWD stock has been climbing steadily thanks to strong growth and a strong financial performance. Recently, the stock has S&P 500 index.
CrowdStrike also reported its first quarter financial results, beating Wall Street expectations for revenue and profits. The cybersecurity company reported EPS of 93 cents, beating the consensus estimate of 89 cents. Revenue was $921 million, up 34% year over year, and beat the $905 million revenue estimate. CrowdStrike ended the quarter with free cash flow of $322.5 million, up 42% year over year.
Analysts continue to rate CrowdStrike shares a Strong Buy, with all 31 analysts tracking the company rating the stock a Buy.
Robinhood Markets (HOOD)
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Online Securities Robinhood Markets (Nasdaq:Food) is another tech stock that's soaring this year.
HOOD shares have risen 80% so far this year, with a 130% 12-month gain. The company's shares have risen amid the current bull market as retail investors return to the market and trade stocks more frequently. Robinhood Markets is also benefiting from a recovery in cryptocurrency trading.
Additionally, HOOD is expanding its role in cryptocurrencies through the acquisition of a privately held cryptocurrency exchange. Bitstamp Robinhood has acquired the company for $200 million in cash, the largest deal in the company's 11-year history and furthering its push into cryptocurrency trading. Analysts say the Bitstamp acquisition puts Robinhood Markets in direct competition with the largest cryptocurrency exchanges. Binance and Coinbase global (Nasdaq:coin).
Additionally, Bitstamp's cryptocurrency exchange is popular in Europe and Asia, offering more than 85 tradable assets, including products such as staking and lending. HOOD's cryptocurrency business is growing rapidly, driven by rising digital asset prices. Cryptocurrency trading was a major factor in Robinhood Markets' ability to report record first-quarter financial results.
Reddit (RDDT)
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Social Media Companies Reddit (New York Stock Exchange:RDDT) has many advantages. The company recently announced a new partnership with an AI startup. Open AIThe partnership with OpenAI is expected to help Reddit attract more users to its social media platform through AI enhancements and increased advertising. Specifically, the new partnership will enable Reddit to leverage OpenAI's technology, including its ChatGPT platform, to build tools and features that integrate Reddit's content in real time.
OpenAI has also committed to becoming an advertising partner for Reddit, which runs online message boards including the popular WallStreetBets site. Reddit derives almost all of its revenue from online advertising on its message boards. The company currently has 82 million active users. RDDT went public on March 21 of this year, and its first earnings report as a public company was impressive.
The company, still in the red, reported a loss of $8.19 per share, which was less than the $8.71 loss analysts had expected. Quarterly revenue was $243 million, beating Wall Street's estimate of $212.8 million. Revenue increased 48% year over year. Reddit also reported quarterly advertising revenue of $222.7 million, up nearly 40% year over year. RDDT shares have risen 33% since its IPO in March.
As of the date of publication, Joel Baglore did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the author in accordance with InvestorPlace.com's publishing guidelines.
