2023-04-13 09:00:00 ET
This is turning out to be a good year for technology stocks. Investors seem to have regained their confidence in the sector on the back of cooling inflation and the Federal Reserve's reduction in the pace of interest rate hikes, which explains the 19% gain in the Nasdaq-100 index.
The stock market rally has rubbed off positively on shares of Amazon (NASDAQ: AMZN) and DigitalOcean (NYSE: DOCN) . While Amazon stock is up 21% so far this year, DigitalOcean has gained 44% as of this writing. Both stocks are trading at attractive valuations even after their impressive gains so far in 2023. Let's see why these stocks are built for more upside.
Amazon had a forgettable 2022 thanks to a tepid e-commerce market and a slowdown in the cloud computing business, which eventually led the tech giant to slash jobs from lucrative areas of its business. Revenue increased just 9% last year to $514 billion. The company posted an adjusted loss of $0.27 per share as compared to a profit of $3.24 per share in the prior year. However, 2023 is expected to be a turnaround year for Amazon as far as its bottom line is concerned.
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