There’s a new wave of tech stocks taking the markets by storm

It could be in with the new and out with the old when it comes to technology this year.

Finally, Gordon believes Square could be set for a breakout. Unlike Twilio and Etsy, Gordon points out that rather than a consolidation, the chart for the payments company seems to have moved in more of a downtrend channel. However, “if you can get more of a pop through there, then Square could do a little catch up on the upside,” Gordon said Tuesday on CNBC’s “Trading Nation.”

Erin Gibbs of S&P Global, however, believes that of the three Square is the best bet. While Gibbs thinks that generally many of these smaller-cap new-age tech names look a little too volatile, she believes that Square’s valuation and its history of beating earnings benefits the stock from a fundamental standpoint.

“[Square’s] valuation is so down, it’s trading at about 33 percent below the Wall Street target price so it’s by far, at least from a fundamental basis, got the most upside,” she said on “Trading Nation.” “[They’ve also] got over two years of beating estimates, and they have a long-term growth estimate of 55 percent, which is one of the highest of any of these stocks.”

Many of these new-age tech names did pull back Wednesday, with Twilio seeing a 2 percent drop.

Disclosure: Todd Gordon has a position in Twilio but does not own Etsy or Square.

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