Small-cap stocks are defined as those companies with a market cap of less than $2 billion -- perhaps too small a figure as that strict definition has been in place for some two decades now, but we digress. At any rate, the digital economy is growing quickly and digital business models are highly profitable too. Investing early in a basket of small tech businesses could yield life-changing returns over time. Here to help you narrow the field of the thousands of small-cap stocks out there, three Fool.com contributors have picked Latch (NASDAQ: LTCH) , Duolingo (NASDAQ: DUOL) , and Super Micro Computer (NASDAQ: SMCI) . Here's why.
Nicholas Rossolillo (Latch): Perhaps you were like me and were first introduced to Latch when former Facebook exec turned SPAC investor Chamath Palihapitiya called the company the "best SaaS [software-as-a-service] company I've ever seen/invested in." Indeed, it's too soon to tell just how successful this cloud software company will ultimately be, but it's off to a hot start.
The company built an operating system for residential and commercial building owners called LatchOS, which integrates with a growing list of third-party connected hardware and Latch's own smart locks, sensors, and building connectivity devices. Real estate is one of the oldest industries around, but it's in need of some digital window dressings. Latch is delivering on that front big time, signing all sorts of deals with new project developments and retrofitting existing buildings with its software suite.
For further details see:
3 Small-Cap Tech Stocks to Buy Before They Take Off