New age internat stocks like Paytm, Zomato, Rategain, etc. have been in uptrend these days. Even though, these shares are way below its respective issue prices, some of these stocks have doubled shareholders’ money after bottoming out after the sell off heat. In YTD time, Paytm share price has surged 80 per cent, Zomato share price shot up 85 per cent whereas Rategain shares have risen to the tune of 105 per cent.
According to stock market experts, these new age internet stocks are witnessing sharp upside movement these days as profitability of these companies have improved i recent quarters. Lowering of expenses have also done the trick for these internet stocks, say experts.
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Triggers for new age tech stocks
Why Paytm, Zomato, other new age tech stocks are skyrocketing, Saurabh Jain, Vice President — Research at SMC Global Securities said, “These new age internet stocks are in uptrend these days as these companies are witnessing upside in their profitability. Stocks of these companies witnessed route in sell induced by Russia-Ukraine war, but they bottomed out once there was trend reversal in their profitability.”
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Speaking on the reasons that has helped these new age internet stocks to gain upside momentum, Rajesh Sinha, Sr. Research Analyst at Bonanza Portfolio said, “Many of new age technology companies went public in 2021 with all time high valuations. Since then market has corrected and most of these companies are trading at prices much lower than their IPO price. However, recently we have seen surge in stock price of new age technology companies mostly because of their focus on improving profitability, cutting unnecessary expenses and focusing on optimizing their marketing and promotional expenses. New age technology stocks like, Rategain Travel, MapmyIndia, Zomato, Paytm, etc. has shown a return of 105%, 95%, 85%, 80%, respectively YTD.”
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On factors that may continue to fuel Zomato, Paytm, MapMyIndia and other internet stocks, Bonanza Portfolio expert added, “With China’s growth slowing, high debt laden economy and real estate tumbling, foreign investors are increasingly looking at the India growth story and the long-term growth prospects of such new-age companies that have a significant opportunity to tap into and could show strong growth in the next 3-5 years horizon.”
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
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