3 Best Tech Stocks Under $20 for October 2024
Technology stocks aka tech stocks are companies that generate profits through modern-day products & services for a large number of people.
While large-cap companies such as Apple and IBM have much higher stock prices, you can find some solid tech stocks under the $20 range. Yes, you can buy a share of several world-class tech companies for the price of a large pizza.
There are literally hundreds of tech stocks trading under this range so we compiled this list of companies to give you some helpful investment ideas.
Best Tech Stocks Under $20
- SoFi (NASDAQ: SOFI)
- Matterport (NASDAQ: MTTR)
- SimilarWeb (NYSE: SMWB)
SoFI
Out of all tech stocks, SoFI is my number 1 choice for high-growth tech stocks under $20. The company was founded in 2011 by Anthony Noto and aims to disrupt the entire banking industry with it’s “All in-one” suite for financial products geared towards Millenials and Generation Z.
In 2021, SoFI earned $986 million in revenue and finished last year with around 3.5 members.
The company added a record 500,000+ members in Q4 2021 alone and continues to diversify its product mix along with the big news of the bank charter approval.
Take a look at this excerpt from the latest Q4 2021 earnings calls as CEO Anthony Noto explains the significance of the bank charter and recent acquisitions:
Our new bank charter will be a game changer for us in differentiating our SoFi Checking and Savings offering in the marketplace, and improving our pricing and selection across Lending. Acquiring Technisys, a leading cloud-native, digital multiproduct core banking platform, will be a critical next step in our continued efforts to vertically integrate SoFi’s businesses to further accelerate the pace of innovation of our best-of-breed financial products. We expect Technisys to be a growth multiplier for both SoFi and Galileo, in addition to realizing its own enormous growth opportunities, which are further strengthened in partnership with Galileo. We think we are well on our way to building the AWS of fintech. We have the right strategy, offering, leadership, liquidity and people to achieve our long-term strategic goal to be the digital one-stop-shop for our members for all of the major financial decisions in their lives, and all of the moments in between. Having just celebrated my fourth anniversary as CEO of SoFi in February, I could not be more excited about what’s ahead, and I feel like we are just getting started
SoFI understands how the average American has a negative relationship with the traditional banking industry. Traditional banks such as Bank of America and Wells Fargo pay extremely low-interest rates on checking & savings account while charging outrageous overdraft and minimum balance fees.
On the other hand, SoFI offers a generous 1% checking APR and charges no overdraft or minimum balance fees on accounts with direct deposit setup.
There’s a reason why SoFI is growing so fast with the potential to experience exponential member growth in the future.
However, SoFI does hold a substantial amount of debt on its balance sheet as it attempts to grow its userbase and product offerings.
SoFI shares trade at a Price to Sales ratio of 7, which is much higher than the entire standard P/S ratio of 2 for brick and mortar banks.
I bought SoFI stock ahead of Super Bowl XVI and will continue to HODL my shares over the next few years.
Matterport
Matterport is a 3D spacial technology company that helps consumers, businesses, and organizations turn their physical space into a digital 3D model. The company aims to profit immensely from the Web 3.0 boom and it’s why I also wrote about Matterport in my best Metaverse stocks article.
