Chief investment strategist says these outperforming tech plays remain attractive
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A few attractive tech plays are ripe for the picking according to Eva Ados, chief investment strategist at ERShares. Ados joined CNBC’s ” Power Lunch ” on Wednesday to give her bullish take on a handful of stocks, including Tesla and Robinhood . Tesla Ados remains optimistic on Tesla’s growth story. Tesla shares have surged nearly 47% over the past month amid a comeback in tech stocks and revived enthusiasm for driverless technology and robotics. CEO Elon Musk on Tuesday also promised to lead the company for the next five years as questions swirled around the amount of time he’s invested in politics and advising the Trump administration. Even after the latest recovery, Tesla shares have lost 17% this year. “We are still buyers of [Tesla] because it’s not just an EV company,” Ados said. “It’s a fascinating story of many different complex components coming together, because now you have the EV, you have autonomous vehicles, which is becoming a reality … and you also have the Airbnb model because in the future, potentially, Tesla owners will be able to rent out their vehicle when they don’t use it.” “All these things together, it’s really hard for any competitor to compete with Tesla in the future,” she added. Ados is also heavily invested in Musk’s private space company, SpaceX, which she believes will be the greatest growth engine in Musk’s portfolio of companies. AppLovin Ados has held AppLovin for two years, and it remains one of her top holdings. AppLovin has soared 57% over the past month, bringing its year-to-date gain at 10.7%. Shares of the advertising technology company popped in early May after AppLovin’s quarterly earnings and revenue beat analyst estimates and it agreed to sell its mobile gaming business in a deal worth $400 million. “This is a fascinating company in terms of how it’s growing. The revenue growth is very, very strong,” Ados said, noting that AppLovin’s revenue, EBIT margin and net income growth is far more attractive than peers in its category. This year was challenging in other respects for AppLovin, she said, pointing to allegations from a handful of short-selling firms that weighed on the stock, stirring investor skepticism. Robinhood Ados believes that it’s still a good time to own trading platform Robinhood even though its shares — up 71% this year — are trading near all-time highs. “It’s a great company on a fundamental basis, but we also believe in it because of the crypto play … this is going to be a good long-term hold,” she said, noting that the Trump administration’s positive approach to crypto assets benefits Robinhood. Ados is also impressed with Robinhood’s profitability turnaround, pointing to Robinhood’s revenue doubling in the last two years and earnings growth that’s higher than revenue growth. “We like when a company turns the corner,” she said. Robinhood reported first quarter net income of $336 million or 38 cents a share , up from $157 million and 18 cents per share a year earlier.
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