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.