Tech Stocks With More Potential Than Any Cryptocurrency

1. The digital payments play :- Adyen

- Adyen, a fintech firm based in the Netherlands, offers backend software solutions for payment processing, customer data management, and business trend analysis.

- Unlike consumer-facing payment apps like PayPal, Adyen focuses on enabling businesses to customize their own payment and data-gathering methods without being restricted to a specific platform.

- Adyen offers integration with over 250 payment methods, including credit cards, debit cards, mobile wallets, and payment apps.

- Adyen's flexibility and customization options have attracted major companies like eBay, which switched from its longtime partner PayPal to Adyen in a multi-year transition.

- Adyen is positioned as a promising long-term investment due to the expected expansion of the global digital payments market, projected to grow at a compound annual growth rate (CAGR) of 21% from 2023 to 2030. Adyen has already shown impressive revenue growth with a CAGR of 40% from 2018 to 2022, and analysts anticipate a continued revenue growth rate of 29% from 2022 to 2025.

2. The EV play:- Li Auto

- Li Auto is a Chinese producer of plug-in hybrid electric vehicles (PHEVs) and offers three main vehicle models: the LV family-sized SUV, and the L8 and L9 crossover SUVs.

- Li Auto has shown impressive growth in its production and deliveries compared to its peers in the Chinese EV market. Its deliveries experienced a remarkable surge of 177% in 2021, and this growth continued with a 47% increase, amounting to 133,246 vehicles in 2022. In the first quarter of 2023, deliveries grew by 66% year over year despite supply chain challenges.

- In comparison, Li Auto's rival Nio grew its deliveries by 109% in 2021 but saw slower growth in 2022 and the first quarter of 2023. Li Auto also maintained a healthier vehicle margin of 19.8% compared to Nio's slim vehicle margin of 5.1%.

- Analysts expect Li Auto's revenue to grow at a significant compound annual growth rate (CAGR) of 65% from 2022 to 2025.

- Despite its strong growth prospects, Li Auto's stock currently trades at a low valuation of just 2 times this year's sales, possibly due to uncertainties in the macro environment and tensions between the U.S. and China. If these headwinds dissipate, Li Auto has the potential to outperform many of its EV peers.

3. The automation and AI play:- UiPath

- UiPath is a leading player in the automation and AI industry, specializing in robotic process automation (RPA) software.

- RPA technology allows businesses to automate repetitive and rule-based tasks, improving efficiency and reducing manual effort.

- UiPath offers a comprehensive suite of RPA tools, including a user-friendly interface, drag-and-drop functionality, and AI capabilities for intelligent automation.

- The company has experienced rapid growth, with a significant increase in revenue and customer base in recent years.

- UiPath's technology is applicable across various industries, including finance, healthcare, manufacturing, and more, providing organizations with scalable automation solutions.

FAQ

1. What is digital payment?

Digital payment refers to the electronic transfer of funds between individuals or entities for goods, services, or any other transactions. It involves using various digital platforms, such as mobile wallets, online banking, credit/debit cards, and electronic payment systems, to complete transactions without the need for physical cash.

2. How does digital payment work?

Digital payment works through secure online networks that facilitate the transfer of funds from the payer to the payee. When a customer makes a digital payment, the payment information is encrypted and transmitted through the respective payment gateway or processor. The funds are then transferred from the customer's account to the merchant's account, completing the transaction electronically.

3. What are the benefits of digital payment?

Some benefits of digital payment include convenience, speed of transactions, reduced dependency on cash, enhanced security measures, ability to track and manage expenses easily, and the potential for seamless global transactions.

4. What are the risks of digital payment?

The risks of digital payment include security threats, potential data breaches or cyberattacks, unauthorized access to personal or financial information, fraudulent transactions, and technical glitches.

5. What are the different types of digital payment?

Different types of digital payment include mobile payments, online banking transfers, credit/debit card transactions, digital wallets, QR code payments, contactless payments, and peer-to-peer payment apps.

6. What is the future of digital payment?

The future of digital payment is expected to continue growing as technology advances. It may involve increased use of mobile payments, further adoption of cryptocurrency, advancements in biometric payment systems, and improved security measures.

7. What is EV?

EV stands for Electric Vehicle, which is an automobile powered by one or more electric motors using energy stored in rechargeable batteries. EVs do not rely on internal combustion engines like traditional gasoline or diesel vehicles.

8. How does EV work?

Electric vehicles work by using electric power stored in batteries to drive electric motors. When the driver activates the accelerator, the electric motor draws power from the battery to turn the wheels, propelling the vehicle forward.

9. What are the benefits of EV?

Some benefits of EVs include reduced greenhouse gas emissions, lower operating costs (compared to gasoline vehicles), quieter operation, potential energy independence, and a reduced dependency on fossil fuels.

10. What are the risks of EV?

Risks of EVs include limited driving range on a single charge, the need for a robust charging infrastructure, higher upfront costs (compared to some gasoline vehicles), and potential battery disposal challenges.

11. What are the different types of EV?

Different types of EVs include battery electric vehicles (BEVs), plug-in hybrid electric vehicles (PHEVs), hybrid electric vehicles (HEVs), and fuel cell electric vehicles (FCEVs).

12. What is the future of EV?

The future of EV is expected to grow as governments and industries focus on reducing carbon emissions and transitioning to cleaner transportation options. Advancements in battery technology, increased charging infrastructure, and competitive pricing are expected to drive EV adoption.

13. What is AI?

AI stands for Artificial Intelligence, which is a branch of computer science that aims to create machines or systems that can perform tasks typically requiring human intelligence. Artificial intelligence (AI) systems have the capability to acquire knowledge through experience, adjust to fresh data, and make choices requiring limited human intervention.

14. How does AI work?

AI systems work through algorithms that process vast amounts of data to identify patterns, learn from them, and make predictions or decisions based on the acquired knowledge.

15. What are the benefits of AI?

Some benefits of AI include improved efficiency, enhanced data analysis capabilities, automation of repetitive tasks, personalized user experiences, medical advancements, and potential solutions to complex problems.

16. What are the risks of AI?

Risks of AI include potential biases in decision-making algorithms, job displacement due to automation, privacy concerns, ethical considerations, and the need for responsible use of AI technology.

17. What are the different types of AI?

Different types of AI include narrow or weak AI, which is designed to perform specific tasks, and general or strong AI, which aims to mimic human intelligence and perform any intellectual task that a human can do.

18. What is the future of AI?

The future of AI is expected to involve further integration into various industries and sectors, advancements in AI technologies, and the potential for AI to play a significant role in shaping the future of technology and society.

19. What is cryptocurrency?

Cryptocurrency refers to a form of digital or virtual currency that leverages cryptography for security. It functions on decentralized networks rooted in blockchain technology, ensuring transactions' transparency and permanence.

20. How does cryptocurrency work?

Cryptocurrency works on a decentralized network of computers called a blockchain. When a user initiates a cryptocurrency transaction, it is recorded on the blockchain and verified by network nodes. The transaction is then added to a block, and once it is confirmed, the transaction is completed. Users can access and control their cryptocurrency using digital wallets and private keys.

Tech Stocks With More Potential Than Any Cryptocurrency

The crypto market seems to have stabilized in the first half of 2023, but it still faces an uncertain future as regulators crack down on the leading exchanges. So instead of chasing cryptocurrencies again for growth, I believe investors should buy these three promising tech stocks

7/12/20235 min read