Tech stocks have been roaring in recent years and have provided investors with fantastic rates of returns. Over this past year, the benchmark fund tracking the technology sector, The Technology Select Sector SPDR Fund (NYSEARCA:XLK), has increased by 25%, while the S&P 500 has only grown by 21%.
The technology industry has experienced rapid growth, and many of the top tech stocks with massive market caps, such as Microsoft (NASDAQ:MSFT), Nvidia (NASDAQ:NVDA) and Apple (NASDAQ:AAPL), have grown very quickly. Other smaller tech companies have also experienced impressive share price appreciation.
Below are three tech stocks that have experienced rapid share price appreciation and have more than doubled in value within the last year.
Q2 Holdings (QTWO)
Q2 Holdings (NYSE:QTWO) offers a cloud-based financial platform primarily for institutional use. Its products include Q2 Goals, Q2 CardSwap, Q2 Consumer Banking and Q2 Biller Direct.
Over the past year, its share price has nearly doubled due to strong earnings potential and its upgraded outlook for 2024.
On May 1, Q2 Holdings reported earnings for the first quarter of 2024, which stated that total revenue increased by 8% to $166 million and annualized subscription sales rose by 18% compared to the previous year.
Q2 Holding beat earnings expectations for the first quarter and raised its outlook for the full year 2024. Total revenue for 2024 is expected between $686 million and $692 million.
QTWO is a stock with upside potential despite its impressive share price appreciation. Investors will be watching closely to see if it beats its next earnings results for the second quarter, which should be reported on July 31.
Celestica (CLS)
Celestica (NYSE:CLS) is an electrical manufacturing company that provides cloud and connectivity solutions for logistics and fulfillment, aerospace and defense, healthcare, communication services and industrials.
On April 24, Celestica reported earnings for the first quarter of 2024, in which it stated that total revenue increased by 20% to $2.21 billion and net income more than quadrupled to $102 million compared to the previous year. Due to strong customer demand, its full-year outlook was raised. The outlook for total revenue 2024 is $9.1 billion, up from its previous estimate of $8.5 billion.
Within its first quarter earnings report, CLS mentioned the projected closing of its acquisition of NCS Global Services and IT infrastructure company — the value of the acquisition of $36 million.
Celestica beat analysts’ predictions for its first-quarter earnings and has experienced strong share price growth, tripling in value over the past year.
It is a stock that investors should consider due to its strong potential for growth and share price appreciation.
AppLovin (APP)
AppLovin (NASDAQ:APP) is an application software company that provides a platform for marketing and monetization content. It offers its users multiple applications, such as AppDiscovery, MAX and Adjust, which provide advertisement capabilities for both large and small businesses.
Over this past year, its share price has risen by 185%, partly due to its development of generative AI technology and strong earnings.
On May 8, AppLovin reported earnings for the first quarter of 2024, stating that total revenue increased by 48% compared to the year before. In Q1 2023, a reported net loss of $5 million improved to a net income of $236 million for Q1 2024.
APP also recently announced its new Axon 2.0, which allows for greater marketing capabilities for advertisement using artificial intelligence. This new product could lead to impressive revenue generation.
AppLovin beat analyst expectations for first-quarter earnings, which caused its share price to skyrocket by 14% directly following the report.
AppLovin is a stock with strong growth prospects and offers investors continued share price appreciation. Its next earnings report for the second quarter will be announced early next month. It will be interesting to see how the company performs.
As of this writing, Noah Bolton 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 writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.