5 technology stocks with a chance to turn around

One investment opportunity that can generate significant returns is investing in technology stocks that are experiencing a turnaround in terms of business, earnings, macroeconomic conditions, and uncontrollable negative factors. Here are five technology stocks that have the potential to turn around again after previously being supported by factors such as the crypto bull market and the COVID-5 pandemic.

SEA Limited

The Singaporean company, which owns three main businesses: e-commerce platform Shopee, gaming business Garena, and financial business SEA Money, has seen its share price continue to decline after its listing on the US stock market due to its continued losses.

However, SEA Limited has now turned a profit for two consecutive quarters, partly due to thousands of layoffs, salary freezes, and reduced sales and marketing expenses. While revenue from its e-commerce business in Asia continues to grow, gaming revenue remains declining.

In terms of share price, SE has been moving sideways for a year and has yet to make a new low. If the company's performance continues to generate profits, especially in the e-commerce business, which has the largest share, it is possible that SEA Limited shares have the opportunity to turn around.

Grab Holding

Another Singaporean company that grew from a well-known startup to be listed on the US stock market through SPACK, its share price has consistently been below its IPO price due to quarterly losses. However, in the latest quarter, losses decreased by 77%, and total revenue grew by 130% compared to the same period last year. Its delivery business segment also saw a 203% increase in revenue.

Analysts predict that Grab Holding could post its first profitable quarter in the fourth quarter of this year, driven by a recovery in tourism and consumption in Southeast Asian countries that are fully reopening.

As the stock price has been moving sideways for some time and no longer making new lows, it is an opportunity to wait for a turnaround opportunity in the future.

Modern

In 2020, the COVID-19 pandemic created a global demand for vaccines. Moderna, the maker of the mRNA vaccine that offers the best protection against COVID-19, saw its stock price rise severalfold.

However, as concerns about the COVID-19 virus subsided, demand for vaccines also declined. With the company's only selling point being the mRNA vaccine, the stock price began to sell off, turning into a downtrend, with no sign of a return to previous levels.

However, according to a recent interview with Moderna's executives, they will continue to produce a COVID vaccine, but will be combined with other respiratory diseases. The sharp drop in the share price has likely priced in the COVID-19 pandemic. If the company can produce a high-quality vaccine that meets high demand in the future, Moderna shares have a chance to turn around. Importantly, the company continues to be profitable.

Zoom Video Communication

Zoom was once a global hit during the COVID-19 pandemic, but demand has since declined, leading to a decline in its stock price.

However, the company's total revenue in the first quarter began to grow, albeit slightly, with an increase in the number of corporate customers and a stable average monthly churn rate of 3.1%.

As the company continues to apply AI technology to applications like meeting note-taking and recently announced an investment in Anthropic, creator of the chatbot Claude,

Coinbase:

Coinbase, an American crypto exchange, went public during the peak of the 2021 crypto market. However, after the market entered a downturn, the company's stock price and earnings continued to decline.

However, as the number one exchange in the US and the world, if the crypto market returns to its uptrend, perhaps next year with the Bitcoin halving, there's a high chance that Coinbase could turn around, as its main competitor in the US market, FTX, has already shut down.

This information is merely an assumption about the stock's potential for a turnaround. Investment decisions must carefully consider other factors, including ongoing monitoring of earnings.