3 Top Tech Stocks to Buy Right Now

Posted On October 3, 2018 2:16 pm

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Investors looking to get the most bang for their buck ultimately will want at least a portion of their portfolios in technology issues, and here’s why: While the broader market, as represented by the S&P 500, has gained an impressive 16% over the past 12 months, the tech-heavy Nasdaq Composite is up nearly 24%. That’s not a fluke, either, as the tech benchmark has outperformed the broader market over the past three-, five-, and 10-year periods. In fact, the 288% increase of the Nasdaq nearly doubles the 152% gain the S&P achieved over the past decade.

With that in mind, we asked three Fool.com contributors to identify tech stocks with room to run in the years to come. Read on to find out why they chose Appian (NASDAQ:APPN)NVIDIA(NASDAQ:NVDA), and Amazon (NASDAQ:AMZN).

App development for the masses

Brian Stoffel (Appian): Any company that wants to thrive in the 21st century needs a convenient way for its customers to conduct business. Apps are by far the most popular mode to fill that need. Unfortunately, developing apps isn’t easy — it requires a dedicated staff of coders who can consistently monitor and update a tool over time. Only companies with large budgets can afford that.

Enter Appian, which provides a “low-code” way for just about any company to develop its own apps. The company was founded and still is run by CEO Matt Calkins — who owns 46.5% of shares outstanding and controls over half the company’s voting rights. Calkins has a bold goal: to cut the time needed to develop apps by 50% every two years. Companies that use the platform pay a subscription rate based on the number of their apps’ end users — making it a scalable solution for companies of all sizes.

The stock isn’t without risk. In chasing market share right now, the company still is years away from turning a profit; over the past 12 months, it bled out $29 million in free cash flow.

And yet, Appian’s revenue-retention rate of 119% last quarter convinces me that the company is not only keeping its customers for the long haul, but getting them to…

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