Investors are still cautious about tech stocks, especially with the fear of recession still looming above the U.S. economy. However, experts believe the tech stocks won’t remain undervalued forever and that this is the right time to include them in your portfolio.
J.P. Morgan’s tech expert Doug Anmuth recently identified two tech stocks that he believes are a good investment even in these challenging times. His prediction is that they are heading towards an extended period of upward trajectory, which could result in a 100% increase in value.
Anmuth’s first pick is the transport platform Uber. The company has done a good job of staying afloat during the pandemic and seems well-positioned at the moment. Uber is also aggressively expanding its business, which should result in more revenue.
The shares of Uber are currently trading at $22.97, which represents a 47.99% loss year to date.
“Elevated living costs could attract more drivers & create greater supply, which could actually help bring down rideshare prices,” said Anmuth. “We recognize Delivery could be more at risk, but Mobility will be the bigger mover on the bottom line. Uber remains a top pick.”
Anmuth is also high on the educational platform Nerdy. He bases his prediction on the fact that the company finished Q1 debt-free while also having $141.7 million in cash and liquid assets. Nerdy stock has been down 43.84% year to date but is experiencing some positive movements lately. The shares have jumped around 16% in the past five days and are currently trading at $2.46 per share.