CRWD, WIX, GDDY: 3 “Strong Buy” Tech Stocks Poised for Growth with GenAI

Dec 1, 2023 | Stock Analysis

In the dynamic landscape of technology stocks, investors are often on the lookout for companies that demonstrate strong growth potential, particularly those leveraging cutting-edge technologies such as artificial intelligence (AI). Among these, CrowdStrike Holdings, Inc. (NASDAQ: CRWD), Wix.com Ltd. (NASDAQ: WIX), and GoDaddy Inc. (NYSE: GDDY) have been identified as “Strong Buy” tech stocks with significant AI upside.


CrowdStrike Holdings, Inc. (CRWD)

CrowdStrike, a leader in cloud-delivered endpoint and cloud workload protection, has been a standout in the cybersecurity space. Despite an average CRWD stock price target of $205.34 suggesting a 2.5% downside potential, Wall Street maintains an optimistic outlook with a “Strong Buy” consensus rating based on 32 Buys and one Hold (Business Insider). The company is scheduled to announce its fiscal third-quarter earnings, and the anticipation is for another earnings beat, which could potentially drive the stock price upward despite the current projections.

CrowdStrike’s recent earnings results have exceeded expectations, reflecting the company’s robust business model and its ability to adapt to the evolving cybersecurity threats. However, despite better-than-expected earnings, the stock experienced a slight dip in the extended trading session (MarketWatch). This could be indicative of market volatility or other external factors impacting the stock performance.

Wix.com Ltd. (WIX)

Wix.com Ltd. offers a cloud-based platform that enables users to design and develop websites and applications. The company has been a pioneer in the AI market since 2016, with the launch of Wix ADI (Artificial Design Intelligence). Analysts see significant upside potential for WIX shares, with over 30% upside potential each. Wix’s utilization of generative AI technologies could help the company climb out of its historic funk.

At 3.5 times price-to-sales, WIX stock is trading well below the infrastructure software industry average of 8.4 times. This valuation makes WIX stock stand out as an attractive investment opportunity. Wix stock holds a “Strong Buy” on TipRanks, with 16 Buys and five Holds. The average WIX stock price target is $115.00, suggesting a 31.8% upside potential (Business Insider).

The company’s innovative approach to AI, including the upcoming Wix AI Site Generator, could revolutionize the website building process, making it more accessible than ever before. This could potentially lead to an expanded customer base and increased market share (The Verge).

GoDaddy Inc. (GDDY)

GoDaddy Inc. is well-known for providing domain registration and web hosting services. The company has recently announced the launch of three new products and services that leveragegenerative AI, aiming to assist small businesses in performing vital but time-consuming tasks to grow their business. This move into utilizing generative AI could be a significant driver for growth and customer acquisition (Yahoo Finance).

GoDaddy’s foray into AI underscores its commitment to innovation and providing value to its customers. By enabling small businesses to generate content and solutions with just a few clicks, GoDaddy is positioning itself as a key player in the AI space, which could translate into a competitive advantage and potentially higher stock valuations.

Conclusion

In conclusion, CRWD, WIX, and GDDY are all rated as “Strong Buy” tech stocks with AI upside, each for their unique reasons. CrowdStrike’s strong performance in the cybersecurity sector, Wix’s innovative use of AI in web design, and GoDaddy’s new AI-driven product offerings for small businesses position these companies for potential growth. Investors should keep a close eye on these stocks as they continue to leverage AI technologies to expand their market presence and drive shareholder value.

While the tech sector can be volatile and unpredictable, the strategic use of AI by these companies provides a compelling case for their future growth prospects. As always, investors should conduct their own due diligence and consider the broader market trends when making investment decisions.

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