Senior account manager Jacob O’Neil, at We Financial, believes that IT-related stocks have come to dominate most investors’ portfolios. In fact, tech companies were so successful worldwide that investors had come up with a shorthand when referring to some of the biggest players in the market. FAANG included companies like Facebook, Apple, Amazon, Netflix, and Google.
While FAANG represents all of the biggest companies in the US, the Australian market also has an acronym for all of its biggest companies, WAAAX. Since all of these companies contribute to interesting and important leaps in tech, they hold incredible potential for growth. These top names include Wisetech Global, Afterpay Limited, Appen Limited, Altium Limited, and Xero Limited. Jacob O’Neil of We Financial explains the top tech stocks that traders should include in their portfolios.
Silex Systems Limited (ASX: SLX)
Following the rise in popularity of reduced carbon emissions for improved sustainability, governments are looking towards renewable forms of energy and nuclear energy. That is where Silex systems limited comes into play, as it is currently developing laser technology to help with enriching uranium. Furthermore, this company is also likely to see positive growth, with more governments looking to increase their nuclear power.
Silex’s success has even become apparent with the start of 2023, with shares reaching a ten-year high. The company has even released their half-year financial results for 2023, which showed revenue up by 77.9% and the company announcing a capital raise. They are expected to see even more growth as plans for a full-scale uranium production operation with Global Laser Enrichment come closer.
Megaport Limited (ASX: MP1)
Megaport is a network-as-a-service provider that is working on a single connectivity platform. The firm specializes in offering businesses a solution to connect all of their internal operations with partner and supplier networks, managed service providers, and multiple cloud providers. And with them offering their services to companies globally, they can help companies connect with some of the biggest cloud-based platforms currently available.
While Megaport is one of the biggest names in the ASX, it is the fifth top shorted stock as of March of 2023, as it continues to post losses. The share prices reflect the company’s struggle to make a recovery, as prices have dropped by upwards of 70% every year following the pandemic. However, the half-year report showed that the company has revenue increase by 39%, with a decrease in losses of 33%.
Xero Limited (XRO)
Jacob O’Neil of We Financial was especially enthusiastic about adding this particular stock option to the list since it has one of the most aggressive strategies in the market. The firm provides Software-as-a-service solutions to both medium and small-sized businesses, and it is currently expanding out into the UK and US.
The half-year report for Xero showed that operational revenue was up by 30%, with an increase in customers of 16%. However, their operating expenses are still seeing a rise, with total company losses seeing an increase of 172% from the previous corresponding period.
To conclude, We Financial senior account manager Jacob O’Neil believes that these companies, despite the difficult time that they are seeing, are the top tech stocks for We Financial trading.
