The Biden Administration is pushing for cybersecurity infrastructure upgrades after recent attacks. Can these stocks ride the secular growth tailwinds and boost your portfolio?
1. Palantir PLTR is not typically thrown into the cybersecurity stock bucket. After all, Palantir is a big data analytics software company that helps government agencies and companies manage and analyze data. However, with the increased hacks and high-profile breaches, businesses are faced with complex challenges that require sophisticated solutions. Palantir offers highly secure data compared to most competitors. It started as a company laser-focused on government-related clients, so its solutions were built with security as the backbone. Commercial-focused vendors cannot say the same, and this provides a competitive advantage for Palantir. As an example, Snowflake (NYSE: SNOW) is more focused on accessing and sharing data, and security is part of the solution. On the other hand, Palantir’s foundation is built with security in mind. As President Harry S. Truman would say, "the buck stops here". Security is priority number one. As Palantir pushes harder into the commercial sector, I believe this advantage will reap rewards. Additionally, Palantir has been thinking outside of the box with their growth expansion, which I explain in the video.
2. Okta OKTA is a leader in Identity Asset Management (IAM). Its platform allows seamless user identification across an entire organization, covering all apps & devices. Okta’s recent acquisition for Auth0 is misunderstood, but I think there is amazing potential with the two businesses combined. Okta is focused on single-sign-on access for employees to cloud SaaS vendors such as Salesforce (NYSE: CRM) and Workday (NASDAQ: WDAY), as examples. Auth0 is a developer tool that enables coders to leverage APIs to access single-sign-on functionality. Simple lines of code can allow IAM integration without a complex workload. You could compare this to how Twilio (NYSE: TWLO) simplifies messaging and communication.
3. Telos Corporation TLS is not a well-known company, but it reminds me of Palantir’s little brother. It's a small cap stock with a $1.88 billion market cap. Telos has over 350 customers, and you may be surprised by some of the names they work with. Telos boasts an 85% recurring revenue model, and 50% of their business is sole source or has limited competition. Telos, like Palantir, has strategic relationships and procurement vehicles with government and federal agencies. I do a deep-dive analysis and breakdown of Telos in this video. This small cap growth stock could be a huge long-term winner in the cybersecurity space. Please watch this video for more information on these cybersecurity-related stocks. I cover fundamental analysis and high-level overviews for each company, then discuss my thoughts on the current stock prices and where I would consider adding more shares to my portfolio.
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This is not financial advice.
Should you invest in the Roblox Metaverse? I recently covered Roblox stock on The Motley Fool, sharing my thoughts and a 25-minute deep-dive analysis video. In case you are not familiar, Robolox is a platform that brings players and developers together. The company's mission is to enable billions of people from across the globe to have fun, learn and play. Roblox is built on a strong foundation of millions of developers who produce immersive "experiences" using Roblox Studio. In fact, Roblox has over 8 million developers and has over 50 million “experiences” or games available to users on the platform. Based on average monthly visits and time spent playing, Roblox is ranked as a top entertainment platform for audiences aged 18 and under. However, Roblox is making a push to attract older audiences as well. Roblox has successfully leveraged advertising and strategic partnerships with Netflix, Disney, and more.
One of the major hurdles with Roblox is trying to place a value on the stock. It has a unique business model with explosive growth, but is this growth sustainable after the pandemic? Probably not completely, but the growth still dominates video game peers such as Electronic Arts, Nintendo, Take-Two Interactive, and Activision Blizzard. In today's video, I provide growth analysis comparing these companies, as well as Shopify, Twilio, Cloudflare, Roku, and Unity Software. My belief is that Roblox is in its own unique niche, and I use Revenue Growth TTM, Revenue Growth FWD, EV-to-sales TTM, and EV-to-sales FWD to compare these companies and determine a fair price for Roblox.
Since going public, Roblox stock has rallied to a high of nearly $104, but it has recently pulled back. The stock is trading down over 25% from the highs, so is it a buy now? Please watch this video for my analysis on the company and opinions on the stock price.
Disclaimer: The information should not be considered legal or financial advice. Informational purposes only.