3 Cheap Tech Stocks Thriving  in the Post-Corona World
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3 Cheap Tech Stocks Thriving in the Post-Corona World

While businesses (and gyms) close their doors around the country, new stock opportunities continue to rise.
Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our website policy prior to making financial decisions.

After the market correction two weeks ago, tech stocks continue to rally, demonstrating their resilience. Largely shielded from the cascading coronavirus fallout, many tech stocks thrive under the “new normal”. While the big, blue-chip players retain their fortress level status among tech stocks, here are several cheap tech stocks to consider, from lowest to highest.

Cheap Tech Stocks to Look Into

Limelight Networks (NASDAQ:LLNW)

Surpassing its penny stock status during June and July, Limelight is back to $5.77 at the time of this writing with healthy indicators of renewed rise. The Arizona-based company specializes in providing edge computing services, content delivery platforms, and cloud security. Limelight’s users are able to easily stream their content, video or otherwise, to multiple devices and platforms.

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Naturally, Limelight fits into the gaming streaming ecosystem, but any broadcasting company can use its services. Accordingly, the coronavirus societal upheaval was a boon to Limelight.

Its Q2 2020 surpassed its revenue estimates by 28%. According to Zacks projections, Limelight is set to conclude 2020 with an 18% revenue growth, while 2021 should continue this trajectory with at least 10% growth.

From 2019, with its adjusted loss of -$0.02, to 2021, Limelight is expected to jump by 81%. These indicators caused Limelight to spike during the Summer months and then winding down in September. However, this presents an opportunity as September looks to be another jumping point for Limelight.

Peloton Interactive (NASDAQ:PTON)

Going from $20 in March to over $80 in September, Peloton quadrupled its value. As an interactive home fitness platform, this is understandable during the pandemic, but is it sustainable in the long run?

Many such ventures have come and gone, but Peloton is pushing for a model that hasn’t been tried yet. Alongside selling high-quality treadmills, bikes, and other exercise equipment, Peloton offers an enticing streaming content that facilitates brand loyalty and the forming of social groups.

Only the digital tech developed in recent years makes this possible, which puts Peloton in the position of a fitness pioneer. You might have noticed that many gyms have permanently shut down, with even underground gyms popping up. For people unwilling to face the wrath of the government or the dearth of exercising environments, Peloton is poised to provide fitness-conscious people with a full package – equipment and community.

Moreover, Peloton reported a 12-month subscriber retention rate of 92%. Q4 2020 was especially good for Peleton as it more than doubled its subscribers. To further increase its fitness ecosystem, Peloton is lowering its barrier to entry, by lowering the price of its new treadmill and lowering the price of Peloton’s existing bike.

In short, Peloton’s rise is almost assured. This is because the cost of its content streaming and community building will remain the same. At the same time, its subscriber base shows all signs of expansion, with an already demonstrated high retention rate.

Spotify (NYSE:SPOT)

Securing the dominance in the audio-streaming sector, it is hard to imagine a service more resilient to external calamities such as a pandemic. Spotify benefited greatly from COVID-19, by consistently gaining monthly active users (MAU) by 30% during the last two years, followed by a 29% increase in Premium subscribers.

As far as its MAU count, it is nearing 300 million users, of which 130 million are Premium subscribers. This puts Spotify even ahead of Apple Music.

Moreover, Spotify offers the full audio content package, podcasts, music, and audiobooks, which represents a steadily growing market as more people discover that listening to books is much less taxing than reading them.

Despite Spotify’s shares spiking 60% this year, it has plenty of room to grow. Reduction of music royalties, targeted ads, and subscriber growth are just some of the avenues for its lean business model. Accordingly, although not in the under $100 stock range, Spotify’s stocks are cheap considering its very positive outlook.

What do you think are the best cheap tech stocks for the reminder of 2020? Is anything catching your eye? Let us know in the comments section below.

Disclosure: Tim Fries has no positions in any of the stocks mentioned, and has no plans to initiate any positions within the 72 hours following the publishing of this article. This article expresses the opinions of Tim Fries. Tokenist Media LLC has no position in any of the stocks mentioned, and does not plan to initiate any positions within 72 hours of the publishing of this article. Please consult our website policy for more information.

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