Hold onto your hats and glasses, because we're about to dive into some rough waters. The three tech stocks below took a beating last year but are bouncing back with a vengeance in 2023. I'm talking about the dynamic trio of Fiverr International (FVRR 4.95%), Duolingo (DUOL -6.21%), and Intel (INTC -0.80%) -- resilient contenders proving that they're here for the long haul.
So let's jump right in and take a closer look at three rebounding tech stocks you may want to snatch up today.
Fiverr: the comeback kid of freelance
Fiverr, the Israel-based online freelance marketplace, has been on a wild ride since its 2019 debut on the stock market. After a 74% plunge in 2022, Fiverr's stock is now up 25% year to date and is showing no signs of stopping. The freelance market is booming despite the challenging economy, and Fiverr is sinking its teeth into new opportunities as they come along.
For example, management paid attention as short-form video and artificial intelligence (AI) emerged as serious business tools in recent years. So, of course, the company provides heavy promotion for its wide range of freelancing experts in those fields. Requests for "TikTok manager" and "AI art" services are red-hot on the Fiverr platform right now.
And this aspiring company is just getting started.
In 2020, Fiverr turned heads by launching Fiverr Business, a one-stop shop for companies looking to hire freelancers. More recently, the company snapped up Knack, a platform that helps businesses manage their freelance workforce.
The global market for freelance services is massive and growing. Fiverr rival Upwork estimates that 60 million Americans performed freelance services last year and contributed $1.4 trillion to the national economy.
In April, BTIG analyst Marvin Fong slapped a buy rating and a $50 price target on Fiverr. Fong believes it's the "purest way to play the attractive online freelancing opportunity with the lowest execution risk."
I couldn't have said it better myself. This little company is going places, and the stock should follow suit in the long run.
Duolingo: soaring high in the language-learning sky
The language-learning platform Duolingo is capturing hearts (and minds) worldwide. Duolingo's stock took a 33% nosedive in 2022. But never fear, it's now skyrocketing -- 91% so far in 2023 -- fueled by a stellar fourth-quarter report.
Maybe I'm biased in Duolingo's favor. I developed a long-running addiction to my daily Duolingo fix long ago. My unbroken streak of daily language-learning shenanigans currently stands at 2,499 days, stretching back to June 2016, as I've picked up conversational Spanish and dabbled in a dozen other languages. These days, I'm having a blast with Esperanto and Ukrainian.
I've also been there on the front lines as the Duolingo service evolved over the years. It offers a wide range of languages, from the serious (Spanish, Arabic) to the silly (Klingon, High Valyrian), and there are always more courses brewing in the Duolingo labs. The company gamified the experience early on with experience points, "lingot" tokens, daily challenges, and more. That's a clever way to increase users' enthusiasm for an educational service.
And why stop there? In the long run, Duolingo wants to apply its educational methods to other fields of study such as mathematics and history. Fiverr dreams of changing how the world does business; Duolingo wants to change how we learn. I'm a big fan of ambitious little companies.
Intel: chipping away at the competition
Let's end this roundup with Intel, the semiconductor titan. Intel's investors suffered through a 49% stock free fall in 2022. However, the chart didn't stay down for long, rebounding 18% year to date.
Last week's first-quarter report played a large part in Intel's recovery. Chipzilla crushed Wall Street's expectations across the board, and followed up with second-quarter revenue guidance well ahead of analysts' consensus projections. The stock rose as much as 7% the next day.
Intel's first-quarter results showcased steady progress, and the company is determined to focus on what it can control: driving consistent execution and advancing its foundry business.
"The combination of our road map strengthening, as we highlighted in our webinar; better-than-expected Q1 market share results; and great execution on the Xeon Gen 4 ramp...Q1 was a turning point as the first quarter of an improving data-center position since I became CEO," Intel CEO Pat Gelsinger said on the earnings call. "Here we are two years into my tenure, and the journey to date has had some unexpected bumps in the road. We're also beginning to see clear points that increase my confidence that we have the right strategy [and] the right team, and we are executing on this transformation."
In other words, Gelsinger's turnaround effort appears to be working. Remember, in a business with long lead times from the start of a new processor design to silicon hitting store shelves, it takes a while to see results. The time is about right to see the positive effects of Intel's revamped strategy.
Investing in a comeback
The three elastic-rebound stories above have each demonstrated their companies' resilience and ability to adapt in a fast-paced market. These companies are making savvy business moves, adding to the long-term potential of their strong fundamentals and growth prospects. Intel's is a household name's turnaround story, while Duolingo and Fiverr are fast-growing upstarts.
Though there are no guarantees in the world of investing, Fiverr, Duolingo, and Intel appear to have the grit and determination needed to weather the storm and emerge stronger.
