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Square, Roku, & Twilio: The Return of Tech Growth Stocks

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On today’s episode of the Tech Talk Tuesday podcast, Ryan McQueeney discusses Twilio, Roku, Square, and the state of trendy tech growth stocks as markets continue to rebound from a brutal stretch of selling.

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As stocks look to continue rallying off the Christmas Eve lows, one particular segment of the market—tech growth—appears to be back in favor, with several notable names—including Twilio (TWLO - Free Report) , Roku (ROKU - Free Report) , and Square (SQ - Free Report) —surging in recent trading sessions.

Of course, lumping all of these stocks together is a challenge. Each is a dramatically different company and trades on entirely different types of news. Take Twilio, for example. The programmatic messaging platform saw a positive analyst research report on Monday, and with a streak of remarkable earnings reports still fresh in the minds of investors, that was enough to push the stock higher.

Roku, on the other hand, needed an official release of preliminary quarterly results to send its stock skyrocketing. The video streaming company has struggled recently amid rising competition in the industry, but its latest user growth and activity numbers were downright impressive. Nevertheless, Roku still has a long way to go before it reaches its pre-selloff highs.

And then there’s Square, which is perhaps the most popular of the trendy tech growth picks. Once the darling stock of 2018, Square crashed in the later months of last year thanks to a nasty mixed of market-wide volatility, profit taking, and an executive departure.

But a stronger trading environment has cooled the first two of those concerns, and Square itself found the solution to the final issue just recently. The booming payments company last week announced that Amrita Ahuja, an experienced finance professional from Activision Blizzard , would become its new CFO, answering one key question investors had about Square’s future.

As mentioned, these are all unique and individual stories. Each company has its own tailwinds and headwind. And yet, there’s something about this brand of tech growth investing that attracts a particular type of investors to names such as Twilio, Roku, and Square. Is this segment back on the menu now that stocks are moving higher again? Check out today’s Tech Talk Tuesday to find out Ryan’s answer.

If you feel that we missed something, or if you want us to cover a different story, shoot us an email at podcast@zacks.com. Make sure to check out all of our other audio content at zacks.com/podcasts, and remember to subscribe and leave us a rating!

Thanks for listening to the Zacks Tech Talk Tuesday Podcast; we will see you next time!

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