3 Must Watch Tech Stocks for Your Sept Watchlist

Well hello again! Sorry we have been MIA the last week, have been finishing off the tail end of summer travels - but given we’re on the other side of Labor Day… Like Rhianna famously said… its time to “Work Work Work Work Work”

As we head into the end of the year… Here are a 3 stocks to keep an eye on!

While you never want to try and catch a falling knife, you must keep an eye on companies with solid financial profiles and long-term growth prospects that have been left for dead by Wall Street. Here are a few that we’re starting to watch (Not Investment advice).

1. DigitalOcean (NYSE: DOCN) Current Price: $26.30 | 52 Week High: $51.69

DigitalOcean is a dark horse in the cloud computing race, often overshadowed by giants but offering something unique. Their secret sauce? A developer-first focus that's won over SMBs, startups, and solo developers. They're not just offering generic cloud services; think tailor-made solutions like Droplets (their own spin on VPS), Managed Databases, and even Kubernetes.

Their recent $111M purchase of Paperspace screams "we're serious about AI." With a global spread of data centers, they're ensuring speedy and smooth experiences for users. Financially they're forecasting a $171M revenue jump next quarter, marking a solid 28% YOY growth. And with the cloud market for their niche set to jump from $75B to a whopping $145B by 2025, they're positioned to capitalize.

DigitalOcean's shares trade at a 4.8x EV/Sales multiple on the CY23 revenue estimates while also sporting healthy 22% NI margins and trading at 25x FCF. Of course, it's not all sunny skies: big tech looms large, and there's always the risk that as clients grow, they might jump ship to bigger providers. But DigitalOcean's aggressive plans, especially in the realms of storage, GPU, AI, and ML, signal they're not here to play small.

If you're on the hunt for an undervalued tech treasure, it's time to zoom in on DigitalOcean.

2. Sea Limited (NYSE: SE). Current Price: $38.32 | 52 Week High: $88.84

In the promising digital realm of Southeast Asia, Sea Limited stands tall and distinct.

With Garena's prowess in gaming and Shopee's knack for tailoring to local tastes, they've skillfully carved out dominant niches. Add SeaMoney's innovative approach to regions underbanked by traditional institutions, and you've got a trio of successes. Garena's not just on the map for their smash hit "Free Fire" but also as a go-to hub for budding game creators. Shopee? They're ahead of the game with local quirks, rolling out things like in-app livestreams and on-the-spot payment options. Then there's SeaMoney, stepping in where traditional banks haven’t, becoming a lifeline for many.

Financially speaking, they're predicting an ~5% YoY revenue leap in 2023 and have turned the financial tables by moving from a negative $878M EBITDA to a positive $1.6B. Sea Limited shares trade at only 1.6x CY23 revenue estimates and have used some operating leverage this year to flex 11% net income margin while trading at 28x FCF.

Despite competition from powerhouses like TikTok and Lazada, Sea Limited's robust market position and adaptability set it apart. They're eyeing expansion into the cloud sector and enhancing Shopee Express, hinting at aspirations akin to global tech behemoths. Noteworthy moves include exiting Latin American markets to focus on core regions and diving into digital advertising.

Amid challenges, Sea Limited's strong multi-faceted strategy indicates a bright future.

3. PayPal (Nasdaq: PYPL). Current Price: $61.80 | 52 Week High: $99.30

PayPal stands out as a promising contender in the digital finance revolution, even amid market uncertainties. Key to its growth is the transition from the conventional PayPal Pro to the innovative PayPal Complete Payments (PPCP) platform, enhancing checkout integration and catering to SMBs. Key segments, like Braintree and PPCP, are set to grow, especially with Zettle joining the party soon.

Despite recent management changes, PayPal's extensive network, boasting 435 million active Digital Wallet users, reinforces its strength. Innovations, like password less logins and superior checkout design, provide a competitive advantage against rivals such as Shopify & Apple Pay. Financially they're forecasting an 8% CY23 revenue jump while trading at only 2.3x EV/sales multiple. Profitability? Well, they’re sporting healthy 19% net income margins while trading at 13x FCF. Its transaction metrics reflect a sturdy growth trend, with TPV surpassing $1 trillion. Sure, there are bumps in the road, like stiff competition, but with their solid strategy and team, they're geared up to face it.

Representing a sizable chunk of the online payment sector, PayPal's vast potential in the $190 trillion global digital payments space is evident. Despite a recent stock price dip, it remains an undervalued investment gem with significant prospects.

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