The pandemic generated tailwinds for many tech stocks in the e-commerce, cloud, gaming, and remote work markets last year. However, many of those stocks stalled out this year as infection rates declined, vaccination rates rose, and more businesses reopened.
As that market sentiment shift continues, investors should pay more attention to tech stocks that should benefit from those reopening trends instead. Let’s take a closer look at three of those companies: Impinj (NASDAQ:PI), Adyen (OTC:ADYE.Y), and Airbnb (NASDAQ:ABNB).
Impinj is a leading maker of radio frequency identification (RFID) chips, software, and readers. Before the pandemic struck, Impinj’s sales were booming as companies used its RFID chips to modernize their businesses, optimize their supply chains, and connect their infrastructure to the Internet of Things (IoT). Retailers also used its chips to track their products and sales trends to compete more effectively against e-commerce giants like Amazon.
However, Impinj’s sales fell 9% to $138.9 million last year as the pandemic disrupted supply chains and shut down retailers. It posted an adjusted net loss of $12.8 million, compared to slim profit of $918,000 in 2019.
But as more businesses reopened, Impinj’s growth accelerated again. Its revenue jumped 25% year over year to $92.5 million in the first half of 2021, and it generated an adjusted net profit of $3 million — compared to a loss of $2.6 million in the first half of 2020. For the full year, analysts expect its revenue to rise 29%, with a much narrower adjusted net loss.
Impinj’s stock trades at just seven times this year’s sales, which makes it cheap relative to other tech stocks with comparable growth rates. Its low enterprise value of $1.3 billion also makes it a lucrative takeover target for larger tech companies that want to enter the RFID market.
Adyen, the European digital payments company that pulled eBay away from PayPal (NASDAQ:PYPL), suffered a slowdown during the pandemic as many brick-and-mortar businesses shut down. Adyen is more dependent on in-store transactions than PayPal, and it doesn’t sell any cryptocurrencies or provide peer-to-peer payment services like PayPal and Square (NYSE:SQ).
Adyen’s revenue rose 28% in 2020 as the growth of its e-commerce merchants offset the slower growth of its brick-and-mortar ones, but that represented a slowdown from its 42% growth in 2019. Its EBITDA increased 27%, but that also marked a deceleration from its 54% growth in 2019.
But in the first half of 2021, Adyen’s revenue and EBITDA rose 46% and 65%, respectively, from the first half of 2020. Its growth accelerated again as more businesses reopened and it didn’t need to rely heavily on lower-margin Bitcoin sales — as Square did — to weather the storm. Adyen also recently partnered with Australia’s…
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