You always have to accept some risk when you buy small-cap stocks, especially when they’re in the technology sector. But in some cases, the juice is worth the squeeze.
It doesn’t take much to move small-cap tech stocks – typically considered to be companies between $500 million and $2 billion in market value. There’s the idea that it’s easier to double revenues from, say, $10 million than it is to do so from $10 billion. Of course, it’s just as easy for those revenues to be cut in half. Thus, catalysts such as a new major contract can swiftly lift positions, while losing a single customer can crush shares.
Thus, it’s wise to invest no more in any small company than you can easily afford to lose. But if you can stand a little risk, the rewards can be rich.
Let’s go over seven small-cap tech stocks to buy. Each of these companies is positioned in a growth business with a promising trajectory. They also benefit from bullishness from the analyst set – each tech stock listed here has a consensus Buy rating from the group of Wall Street pros covering it.
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