On Tuesday, the stock market posted gains for a second straight day, with the S&P 500 rising 0.48%, the Dow increasing 0.20%, while the tech-heavy Nasdaq Composite gained 0.22%. However, the S&P 500 is still in the correction territory, down about 13% from its record highs. Furthermore, Wall Street is awaiting a widely expected 50 basis points rate hike this week by the Federal Reserve and further information regarding Fed’s aggressive monetary policy tightening. Tech stocks have suffered a massive sell-off this year due to the Fed’s pivot to a hawkish strategy to combat the rising inflation and the geopolitical issues.
Nevertheless, technology plays a crucial role in the digital era. Gartner predicts worldwide IT spending to rise 4% from 2021 to $4.4 trillion in 2022, and 65% of B2B sales organizations are expected to use technology to unite workflow, data and analytics. Moreover, the Technology Select Sector SPDR Fund (XLK) is still up 3.2% over the past year and has gained 1.4% over the past five days.
Hence, we think the tech stocks Box, Inc. (BOX), Cyngn Inc. (CYN), and Blackboxstocks Inc. (BLBX), which have been gaining in price despite the market turbulence, might be ideal additions to one’s watchlist now. Over the past three months, these stocks’ gains have largely outpaced the S&P 500’s declines of 6.7% over the same period.
Box, Inc. (BOX)
BOX in Los Altos, Calif., operates as a cloud-content management platform provider that helps organizations manage and share their content from any device. The company offers a Software-as-a-Service platform that enables its customers to collaborate on content internally and with external parties.
On April 27, BOX announced that Polpharma Biologics, a European biotechnology company, had chosen it to power its secure cloud content management and collaboration. On the same day, the company declared that Asahi Group Holdings, Ltd. had adopted BOX as its content hub. These business wins might add to the company’s revenue stream.
On April 14, BOX introduced the Box App Center, a user, admin, and developer destination to discover and access several applications that integrate with BOX. The app center that gives users the ability to find and work with more than 1500 BOX-integrated apps might benefit the company.
For its fiscal fourth quarter ended January 31, BOX’s revenue increased 17.3% year-over-year to $233.36 million. Its non-GAAP gross profit rose 20.4% from the prior-year quarter to $175.22 million. Its non-GAAP net income and non-GAAP net income per share attributable to common stockholders improved 4.3% and 9.1%, respectively, from the same period in the prior year to $36.87 million and $0.24, respectively.
The $1.13 consensus EPS estimate for its fiscal year 2023 indicates a 32.9% year-over-year increase. Likewise, the $993.51 million consensus revenue estimate for the same year reflects a 13.6% improvement from the prior year. Furthermore, BOX has an impressive surprise earnings history; it has topped consensus EPS estimates in each of the trailing four quarters.
The stock has gained 45.7% in price over the past year and 17% year-to-date to close yesterday’s trading session at $30.65. It has gained 19.7% over the past three months.
Click here to check out our Cloud Computing Industry Report for 2022
Cyngn Inc. (CYN)
CYN in Menlo Park, Calif., is an autonomous vehicle (AV) technology company that is developing autonomous driving software. The company participates in AV development, including DriveMod, a modular industrial vehicle autonomous driving software, and Cyngn Insight, a customer-facing tool suite to monitor and manage AV fleets.
On April 21, CYN announced the official launch of DriveMod Kit, a turnkey AV solution. The kit is expected to offer manufacturers and logistics companies enhanced productivity, improved safety, and lower costs, which might prove profitable for the company.
On January 18, it was reported that CYN and Columbia Vehicle Group, an electric vehicle manufacturer that serves industrial and commercial environments, had started production of autonomous Columbia Stockchasers powered by CYN’s Enterprise Autonomy Suite (EAS). The fleet is expected to deliver CYN’s self-driving solutions on Columbia vehicles available to a broad customer base.
For its fiscal year ended Dec. 31, 2022, CYN’s net cash provided by financing activities increased 3,378.8% year-over-year to $24.20 million. The company’s cash, cash equivalent, and restricted cash balance for the year came in at $22 million, up 240.7% from the prior year.
The Street expects CYN’s revenue to increase 300% year-over-year to $4 million for its fiscal year 2023.
Over the past three months, CYN’s stock has gained 141.1% in price and 167.4% over the past month to close yesterday’s trading session at $3.93.
Click here to check out our Automotive Industry Report for 2022
Blackboxstocks Inc. (BLBX)
Dallas, Tex.-based BLBX is a developer and marketer of a financial technology and social media hybrid platform. The company offers subscription-based software as a service called Blackbox System, which provides real-time analytics and news for stock and options traders.
On May 2, BLBX announced the completion of the development of its mobile application for the Blackbox platform and its release for iOS and Android phones and devices. Gust Kepler, Chief Executive Officer, said, “This is especially relevant now that a large portion of the new members we acquired in the 2021 retail boom, have gone back to the workplace where our desktop platform can be hindered by firewalls or other corporate security policies.”
BLBX this month declared that it had finished its platform integration with E*TRADE Inc., enabling BLBX’s users to use E*TRADE accounts to trade stocks without leaving its platform. This integration is expected to benefit BLBX by catering to the number of accumulated new options traders.
BLBX’s revenues increased 61.7% year-over-year to $1.69 million for its fiscal fourth quarter, ended Dec. 31, 2021. Its gross margin for the period improved 104.7% from the prior-year quarter to $1.11 million. And for its fiscal year ended Dec. 31, 2021, BLBX’s cash balance stood at $2.43 million, up 149.4% from the prior year.
The Street’s EPS for fiscal 2022 reflects a 74.1% rise year-over-year, while the Street’s $$11.67 million revenue for the same year indicates a 90.9% improvement from the prior-year period.
BLBX’s shares have gained 41.2% in price over the past three months to close yesterday’s trading session at $3.05.
Click here to check out our Software Industry Report for 2022
BOX shares were trading at $30.83 per share on Wednesday morning, up $0.18 (+0.59%). Year-to-date, BOX has gained 17.72%, versus a -12.03% rise in the benchmark S&P 500 index during the same period.
About the Author: Anushka Dutta
Anushka is an analyst whose interest in understanding the impact of broader economic changes on financial markets motivated her to pursue a career in investment research.
3 Tech Stocks That are Surging While the Rest of the Market Plunges StockNews.com
