Technology 845

Tech stocks are on the move, rising 22.6% since the beginning of the year.

Texas Instruments Incorporated (TXN) | Daily Alert August 13
Texas Instruments (High-Growth Dividend Payer Portfolio, Dividend Sustainability Rating: Above Average) last raised its quarterly payment in November 2020. Investors now receive $1.02 a share, up 13.3% from $0.90. The new annual rate is $4.08.

Demand for the company’s chips has surged in the past few months as manufacturing activity continues to rebound from last year’s COVID-19 shutdowns. In the quarter ended June 30, 2021, Texas Instruments’ revenue jumped 41.4%, to $4.58 billion from $3.24 billion a year earlier. As well, earnings shot up 39.9%, to $1.93 billion from $1.38 billion. Earnings per share gained at a slower pace of 38.5%, to $2.05 from $1.48, on more shares outstanding. If you factor out unusual items, earnings in the latest quarter still rose 34.5% to $1.99 a share.

Texas Instruments is a buy.
Patrick McKeough, Dividend Advisor, tsinetwork.ca, 888-292-0296, August 2021

Dynatrace, Inc. (DT) | Daily Alert August 16
Dynatrace’s all-in-one platform helps thousands of mid- and large-sized companies that are transitioning their systems and apps to the cloud to get data, context and information about their apps, infrastructure and even the end user experience. And for massive firms, this is a process that can take years. That’s thanks in part to the company’s first-class automation and artificial intelligence capabilities.

And it works no matter what cloud platform(s) a client uses, too. Because of that, the company has garnered a who’s who list of big customers. On average, these customers are boosting their spending with the company by north of 20% per year. And new clients are hopping onboard (135 new logos in Q2; total customers just over 3,000). All of that is creating 30%-plus recurring revenue growth and booming remaining performance obligations (all money owed to it under contract), which rose 46%.

Profits are solidly in the black, but heavy spending means the focus is on capturing business, which Wall Street seems fine with. After a long consolidation, DT has been persistently pushing higher for a few weeks, moving to new highs. It’s not the most volatile name, so we’re going to add a full-sized (10% of the portfolio) position here and use a 15%-ish loss limit. BUY
Michael Cintolo, Cabot Growth Investor, cabotwealth.com, 978-745-5532, August 5, 2021

Square, Inc. (SQ) | Daily Alert August 27
Investors /traders should focus on Square’s corporate Q-2 record earnings of $52.26B and record profit margin of 13.6% with revenues and earnings remain at high 80%. The Dow Jones Industrial /^DJI/ consisting of 30 companies earnings weighted average of $1,484.00 with P/E of 25 could visit 37,100. Applying the same technique towards S&P 500 /^GSPC/ which consists of 11 sectors with weighted average earnings of $191.00, P/E of 24 could visit 4,584.00.

Square, Inc @ 264.78

Down from 276.20. Building a trading base (261-264). Add to long positions. Retain same stop loss of 243.

Volatile
Joseph Parnes, Shortex Market Letter, shortex.com, 800-877-6555, August 18, 2021

*Desktop Metal, Inc. (DM)
Desktop Metal Inc. manufactures 3D printers to make metal and carbon fiber 3D printing.

The additive manufacturing (AM) market is still in the infant stages of a decades-long boom. The AM market is currently valued at around $12 billion but is projected to grow 11-fold to $146 billion by 2030.

During the second quarter of 2021, Desktop increased revenues 68% quarter over quarter to $19 million.

Not only has the company recently acquired Aerosint to boost its multi-material capabilities for its second-generation AM product portfolio, but it also scooped up Beacon Bio, which added the PhonoGraft biofabrication platform to the company’s health portfolio. The PhonoGraft technology is being studied for potential use in an implantable device for repairing damaged eardrums.

However, it’s Desktop Metal’s most recent acquisition that made us pull the trigger. On August 11, 2021, the company announced it was acquiring ExOne Co. for approximately $575 million. ExOne is a manufacturing tech company specializing in metal 3D-printing technology and has substantial ties to the U.S. auto industry. Back in March 2021, it inked a deal with Ford under which the auto giant will use ExOne’s metal printing technology to manufacture “tissue box-sized” aluminum parts at high volume starting next year.

By purchasing ExOne, Desktop Metal will greatly expand its product portfolio and accelerate the adoption of additive manufacturing for mass-production applications.

We rate Desktop Metal a “Buy” under $15.00. The risk level is “Medium.”
Keith Kohl, Technology & Opportunity, angelpub.com, 877-303-4529, August 2021

*Affirm Holdings, Inc. (AFRM)
Affirm Holdings Inc. announced that it is entering into a partnership with Amazon.com (AMZN), that will allow the e-commerce giant’s customers to make monthly payments on purchases of $50 or more.

Analysts already seem to love the move, with at least two brokerages hitting Affirm stock with massive bull notes. Specifically, Truist Securities and Mizuho raised their target prices on AFRM to $120 and $110, respectively. The majority of the brokerage bunch was already bullish toward the security coming into today, with six of the nine in coverage rating the stock a “buy” or better.

Though the equity boasts significant growth from its May 11 all-time low of $46.50, AFRM still remains slightly below its Jan. 13 debut close of $97.24.
Bernie Schaeffer, Schaeffer’s Investment Research, SchaeffersResearch.com, 800-327-8833, August 30, 2021

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