3 Best Tech Stocks Under $20 Per Share

Jhe tech sector has been hit hard after a three-decade run that saw the Nasdaq 100 earn nearly 4,000%. However, in 2022 it is down 28%, putting it deep in bearish territory.

But that makes the sector rife with opportunity, as many former high-flying names have been hit hard by the recession. This means that previously untouchable tech stocks are now much more affordable, and by buying some of the top companies that still possess great growth prospects, their newly reduced prices below $20 per share make them a bargain.

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1.C3.ai

The Global artificial intelligence (IA) is expected to nearly double by 2030, reaching $1.6 trillion for a compound growth rate of 36% per year, according to Precedence Research. C3.ai (NYSE:IA) taps into this huge growing market by providing AI solutions for enterprises in the areas of data and network security, customer engagement, fraud detection and configurable supply chains for a client’s individual needs.

Although suffering a setback during the lockdown phase of the coronavirus pandemic since much business activity was halted, C3.ai is making up for lost time by expanding its target market beyond just high-class companies. business and including businesses of all sizes.

Fiscal third-quarter revenue for the period ending Jan. 31 jumped 42% to nearly $70 million, while subscription revenue jumped 34% Year after year. The number of customers it serves has increased by 82% to 218 in 15 different industries and includes the US Department of Defense, which awarded it a five-year, $500 million contract.

At less than $17 per share, C3.ai has lost more than three-quarters of its value from highs reached nearly a year ago after its Initial Public Offering. Concerns about customer concentration, however, seem to be fading as it builds its base, and this AI stock could be cheap to buy now.

Person looking at hourglass while holding calculator.

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2. Spend

Another stock hit by pandemic shutdowns and subsequent slump in business travel, expense management software provider Spend (NASDAQ:EXFY) is another relatively new entrant to the market after its IPO in November 2021. It lost nearly two-thirds of its value in the following months as management’s uncertainty over economic conditions led it to say it would stop providing quarterly forecasts. But this should actually be considered a feature, not a bug.

Management prefers to focus on the long-term prospects of its business rather than short-term solutions. On this front, Expensify is seeing revenue grow sustainably at a rate of 2% to 3% each month, allowing it to project long-term growth of 25% to 30% over multi-year periods.

Expensify believes its stock is running low, after allowing a $50 million buyback program, and paid user growth exceeded expectations, reaching 706,000 members. While that number is still lower than what it ended with in 2021, by the end of March that number had reached 742,000 members, the second-best month in company history.

While analysts have lowered their price targets for Expensify in recent months, it is still considered to have good growth prospects due to what JMP Titles analyst Patrick Walravens calls the software “super easy to use” and a viral business model.

Person with laptop talking on the phone.

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3. Square space

Trading just under $20 per share at the time of this writing, square space (NYSE: SQSP) could be above this threshold as you read this. Regardless, the website builder is a stock of long-term growth opportunities.

as rivals Shopify and WixSquareSpace has gone from simply giving entrepreneurs an online presence to also providing them with a e-commerce product. But it goes beyond that by also offering scheduling, billing, appointments, and more. Clearly, while e-commerce is enjoying some softness in the current economic climate, Squarespace remains strong because it’s so well balanced with many capabilities that will all grow in the years to come.

Chairman and CEO Anthony Casalena told analysts earlier this month: “I see them all being bigger, and more online and transactions flowing more to online sources over the next couple of years. So I’m really happy with how we’re situated there.”

square space made public a year ago as well and has lost 70% of its value since then, making its stock more affordable. Its business has benefited from the shift of small and medium-sized businesses online over the past two years, a trend that has long legs for the future.

10 stocks we like better than Squarespace, Inc.
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Rich Duprey has no position in the stocks mentioned. The Motley Fool holds positions and recommends Shopify and Wix.com. The Motley Fool recommends C3.ai, Inc. and Expensify, Inc. and recommends the following options: $1140 January 2023 Long Calls on Shopify and $1160 January 2023 Short Calls on Shopify. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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