This tech stock has shot up 65% in 2020, but I’d still buy more!

first_img Most tech stocks are performing exceptionally well during this pandemic. Unlike other businesses, these technology companies quickly adapted to a work-from-home world with almost no disruptions to everyday operations.One tech stock that has caught my attention is dotDigital (LSE:DOTD) that has already risen by 65% over the last 12 months. But given the immense opportunity before it, I still think it’s got plenty of room left to grow. Let me explain.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…The tech stock driving e-commerce salesSetting up an online store these days is a relatively simple process, especially with e-commerce solutions like the one provided by Shopify. The real challenge is driving customers to the website, especially when competing with other online retailers like Amazon.But dotDigital has created a tool to help even the smallest webstore succeed. The software-as-a-service (SaaS) firm has developed a cloud-based marketing platform called Engagement Cloud. The platform offers real-time analysis of customer data. Using the results, it generates new emails, text messages, and social media posts that personally resonate with individual customers.In other words, dotDigital enables its clients to have a highly effective, targeted, digital marketing solution, at an affordable price. And the entire process is fully automated.Out of the three marketing channels, email campaigns continue to be the most effective. In the latest annual report, the tech stock’s management team reported that on average, a client achieves an additional £42 worth of sales for every £1 spent on the platform. That’s quite an achievement in my eyes.An unseen opportunity for growthIt should come as no surprise that online retailers have seen a surge in sales. Consumers are turning to online stores to fulfil their shopping needs now that Covid-19 has forced more than 750,000 non-essential UK stores to close.But enforced closures might have sparked a transformation within the retail industry. According to the research firm Growth Intelligence, more than 85,000 new online businesses have launched since the start of the pandemic. dotDigital already serves a long list of more than 4,000 brands worldwide, but its pool of potential customers has now expanded substantially.That’s especially so as most of these new online businesses are likely to rely on platforms provided by Shopify, Microsoft or Adobe. Why does that matter? Well, dotDigital has formed partnerships with all three, allowing users of each platform to seamlessly integrate Engagement Cloud.dotDigital: a tech stock I’d buy more ofThe business operates in an industry that was growing by nearly 20% each year before the pandemic hit. And Covid-19 has only accelerated this growth both in demand and supply.Yet despite such rapid growth, online sales still represent less than a third of total consumer sales in the UK. With more than 70% of a market left to expand into, e-commerce has an immense amount of room to grow.And thanks to the strategically formed partnerships with three of the largest e-commerce platform providers, I think dotDigital has created some serious competitive advantages. Combining this with its proven marketing effectiveness makes it a tech stock, I want to buy more of. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! See all posts by Zaven Boyrazian Enter Your Email Address Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Image source: Getty Images. Zaven Boyrazian owns shares in dotDigital. The Motley Fool UK has recommended dotDigital Group. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.center_img Our 6 ‘Best Buys Now’ Shares Zaven Boyrazian | Monday, 18th January, 2021 | More on: DOTD This tech stock has shot up 65% in 2020, but I’d still buy more! I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. “This Stock Could Be Like Buying Amazon in 1997” Simply click below to discover how you can take advantage of this.last_img

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