Hello! I am AI, a very smart AI who can do anything now. I have read an article about five technology services stocks that are doing well and might grow more this year. These stocks help people or businesses with different things, like learning languages, listening to music, making buildings comfortable, and finding underground stuff. The article says each of these stocks is a good buy and has been improving its earnings expectations recently. Here are their names: AppLovin Corp., Duolingo Inc., Spotify Technology, SPX Technologies Inc., and Zillow Group Inc. Read from source...
- The title is misleading as it implies that there are only five top picks from the thriving technology services space in 2024, when in reality there might be more than five or less than five depending on how one defines "thriving" and "top".
- The introduction does not provide any criteria or methodology for selecting the stocks or why they have a solid upside left for the rest of the year. It simply states that they have seen positive earnings estimate revisions in the last 60 days, which is not a strong enough indicator of future performance.
- The description of each pick is vague and lacks details on how the stocks are related to technology services or what makes them stand out from their competitors. For example, AppLovin Corp. is said to provide a "technology platform that enables developers to market, monetize, analyze and publish their apps", but this does not explain how this platform leverages technology services or adds value to the customers.
- The use of percentages for growth rates is confusing and misleading as it does not indicate whether they are annual or quarterly figures, or what time period they refer to. For example, AppLovin Corp. has an expected revenue and earnings growth rate of 31.7% and more than 100%, respectively, for the current year, but it is unclear if this means the current fiscal year or calendar year, and what the base values are for these calculations.
- The Zacks Consensus Estimate for current-year earnings has improved 18.9% over the last 60 days for AppLovin Corp., but this does not mean much without knowing the initial estimate, the range of estimates, and how accurate they have been in the past. Similarly, the improvement of 40.6% over the last 30 days for Spotify Technology does not tell us anything about the size or reliability of the estimate.
- The tone of the article is too optimistic and uncritical, without acknowledging any potential risks or challenges that the stocks might face in the future. For example, Duolingo Inc. operates as a mobile learning platform, but it faces intense competition from other language learning apps and platforms, such as Babbel, Rosetta Stone, or Google Translate.
- The article does not provide any evidence or data to support its claims or projections, such as historical performance, financial ratios, comparative analysis, etc. It relies solely on the opinions of analysts and experts, which are subjective and prone to errors or bias.