Chronicle Journal: Finance

3 Tech Stocks up More than 1,000% in 2020: Riot, Veritone, and Beam Global

The tech industry has been one of the biggest winners of 2020. In fact, a pandemic-ready business model has helped many tech players reach price levels beyond imagination. Companies like Riot Blockchain (RIOT), Veritone (VERI) and Beam Global (BEEM) have significantly benefited from the pandemic-driven changes in consumer and business behavior and their stocks gained more than 1,000% this year.

The majority of tech stocks have significantly benefited this year, as the pandemic turned into a blessing in disguise for them. These companies have benefited from the increased dependence of individuals and business on technology to stay operational. Major business activities are being operated through the cloud and people across the globe are dependent on different technology solutions for working and learning. The outperformance of technology stocks can be evident from the Technology Select Sector SPDR ETF’s (XLK) 42.1% gain over the past year.

While vaccine distribution has started, vaccinating the masses across the globe isn’t an easy task and may take some time. This, coupled with the spread of the new strain of the virus, is expected to make people depend more on tech solutions, which should further drive the industry’s growth.

Riot Blockchain, Inc. (RIOT), Veritone, Inc. (VERI), and Beam Global (BEEM) operate in digital currency mining, artificial intelligence, and solar sectors, are some of the best performing stocks this year. Given their continued innovations and favorable industry backdrop, these stocks should keep soaring in upcoming months.

Riot Blockchain, Inc. (RIOT)

RIOT is a digital currency mining company focused on building and supporting the Blockchain technologies ecosystem. The company, through its subsidiary TESS Inc., develops a blockchain-based escrow service for wholesale telecom carriers. The company is also involved in purchasing and selling digital currencies, and providing accounting, audit, and verification services for blockchain based assets.

On December 14th, RIOT teamed up with Enigma Digital Assets AG and Lancium, LLC to launch an 8-megawatt (MW) pilot project to assess the potential for higher productivity and lower cost mining opportunities in Texas. This strategic move is aimed at achieving economies of scale through low-cost infrastructure and ultra-low-cost electricity.

On December 21st, RIOT purchased 15,000 S19 Pro and S19j Pro Antminers for approximately $35 million. These miners are expected to increase its estimated bitcoin mining hash rate by 65% to 3.8 EH/s.

RIOT’s revenues have increased 41.5% year-over-year to $2.46 million in the third quarter that ended September 2020. Its net income has improved 6.4% from the same period last year.

Analysts expect RIOT’s revenues to rise 412.5% to $53.3 million for the fiscal year ending December 2021. The consensus EPS estimate of $0.02 for next year represents a 103.8% rise from the previous year. The company has an impressive earnings surprise history, as it beat the street EPS estimates in three out of trailing four quarters. RIOT has gained 1,441.1% so far this year.

How does RIOT stack up for the POWR Ratings?

A for Trade Grade

A for Buy & Hold Grade

A for Peer Grade

A for Overall POWR Rating.

The stock is currently ranked #8 of 60 stocks in the Technology - Services Industry.

Veritone, Inc. (VERI)

VERI is an artificial intelligence (AI) computing solutions company operating in the United States and United Kingdom. It operates a cloud-based artificial intelligence operating system (aiOS), which integrates and orchestrates an open ecosystem of cognitive engines to generate actionable intelligence. The company’s target markets include Media Agency Services, Software-as-a-Service (SaaS) Solutions, and other Vertical Markets.

Earlier this month, VERI achieved Amazon Web Services (AWS) Public Safety & Disaster Response (PSDR) Competency status, awarded by Amazon.com, Inc. (AMZN). This reflects the company’s ability to help customers leverage AWS’ platform to foster transparency and protect the public.

On December 9th, VERI entered into a new content licensing agreement with Brave Bison to expand Veritone Licensing's global user-generated content library. This agreement enables Veritone to broaden its global reach by enhancing the availability of user-generated content for licensing and creative projects.

On December 15th, VERI launched Veritone Automate Studio, a low-code web-based workflow designer, to rapidly deploy AI-powered workflows without heavy coding and AI expertise, and integrate resulting content insights into legacy applications and business processes at scale. This product’s potential to enable, accelerate and scale business transformation will provide it with a competitive edge over its peers.

VERI’s revenues have increased 22.7% year-over-year to $15.72 million in the third quarter that ended September 2020. Its non-GAAP operating income improved 56.4% from the year-ago value, while non-GAAP EPS rose 65.1% over the same period.

Analysts expect VERI’s revenue to grow 30% year-to-year in the current quarter ending December to $16.18 million. The consensus EPS estimate represents a 54.5% improvement over the same period. The company has an impressive earnings surprise history as it beat the street EPS estimates in each of the trailing four quarters. The stock has gained 1,069.1% so far this year.

It is no surprise that VERI is rated “Buy” in our POWR Ratings system with an “A” for Trade Grade. It is currently ranked #22 of 60 stocks in the same industry.

Beam Global (BEEM)

BEEM designs and manufactures solar products and technology solutions focused on creating renewably energized products for electric vehicle and drone charging, outdoor media and branding, and energy security. The company's product line includes the Electric Vehicle Autonomous Renewable Charger (EV ARC) and the Solar Tree.

Earlier this month, the US Patent and Trademarks Office issued a patent to BEEM’s UAV ARC Drone Recharging Network. Through this networked drone recharging solution, BEEM plans to provide en-route charging for unmanned aerial vehicles.

On December 9th, BEEM announced patents pending on three new product developments aimed at developing EV charging infrastructure. These products would be designed to increase renewable energy production, and improve resilience and disaster preparedness.

On December 14th, BEEM was added to the CIBC Atlas Clean Energy Index. On December 17th, the City of Montebello announced deployment of two EV ARC solar-powered EV charging terminals to serve fleet vehicles and provide an emergency preparedness asset, reflecting the company’s increasing market share.

Analysts expect BEEM’s revenue to rise 229.3% year over year in the current quarter ending December to $1.63 million. The consensus EPS estimate represents a 57.1% improvement over the same period. BEEM has gained 1358.2% so far this year.

BEEM is rated “Strong Buy” in our POWR Ratings system. It has an “A” for Trade Grade and Peer Grade, and a “B” for Buy & Hold Grade. In the 19-stock Solar Industry, it is ranked #4.

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RIOT shares were trading at $17.17 per share on Thursday afternoon, down $0.09 (-0.52%). Year-to-date, RIOT has gained 1,433.04%, versus a 17.69% rise in the benchmark S&P 500 index during the same period.



About the Author: Rishab Dugar

Rishab is a financial journalist and investment analyst. His investment approach is to focus on quality stocks, trading at low prices, with business models that he readily understands.

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