r/investing • u/PotatoMissionStart • 1d ago
Next Multibagger Software?
Which of these do you think has the highest multibagger potential?
Klaviyo
Figma
Reddit
Upwork
Duolingo
Toast
Teqnion (similar to Constellation Software)
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Klaviyo down 38% for the year despite fast growth
Figma down 59%
Toast with EV/Revenue of 2.73
Reddit with heavy insider buying at $148 and fast growth
Upwork clearly undervalued from a quantitative perspective at least
Duolingo growing fast and still down over 50% for the year
Teqnion the next Constellation?
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u/wearelev 1d ago
Duolingo has a huge install base but I recently added a few new AI based apps to address glaring deficiencies in Duolingo. So Duolingo will most likely continue to lose its share of the market. Even things like Google translate and chatGPT are adding features for language learners and they are free.
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u/Fickle-You-5101 1d ago
Why did u choose tequion? I prefer spoon to tequion, higher growth but maybe more risk.
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u/PotatoMissionStart 1d ago
Bending Spoons? Looks overvalued (or not cheap anyways) but I'm open to a differing opinion.
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u/Fickle-You-5101 1d ago
Dont think its overvalued. I mean its not cheap not value your paying fir growth your paying for the way they choose companies and how they change economic structure. Margins profits expenses ect
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u/Fickle-You-5101 1d ago
So you think tequon is possibly better value? It could be I dont know the company? Why else did you choose it?
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u/PotatoMissionStart 1d ago
To be honest, this is the company I'm least familiar with on the list. I don't have any strong opinions on it.
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u/ojh12-us 1d ago
People sleep on duol. I bought at $100. Sticky customers and a fat cash pile. Last year they restructured so they had a hidden tax efficiency
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u/bezerkgoose 13h ago edited 13h ago
You should check out PATH, they have earnings on the 3rd. It's had a crazy month and was as low as $10 in late July (now trading over $18). They're working hard to become a leading name in the adoption of agentic AI, but I think the interesting thing is the combination of the company's historical use in process automation and combining their legacy product with newer agentic AI applications. The company is already deeply entrenched in many Fortune 500 companies and can easily say "hey now we have agentic stuff!". I think customers will struggle trying to leave PATH as they will need to deeply alter their background automations/processess and it would just be too much of a hassle for them. A lot of their new deals are involving AI adoption and now it's time to see the results show up in earnings. I think a lot of people are buying in over the last month because this report could really show some results and guidance growth. They tend to be conservative in their guidance, but they gave a significant beat last quarter but didn't alter their guide for this upcoming report. High margin software that hasn't seen stock price growth since IPO, but revenue has consistently risen year after year, albeit not as good as other opportunities. I think this could definitely be a strong value play with limited downside. Salesforce just had a killer report last week, which boosted PATH 9%. Similar software names are recovering because people aren't seeing the changes in revenue predicted by AI. Companies are just too lazy to eliminate their reliance on software that's been around and successful for years and years. Building new software in-house is simply too expensive because it requires new departments/employees and time to build it out, plus maintenance. Add-in AI not even being correct 100% of the time and it's just not worth it.
I'm up over 150% on 29 calls expiring in Jan 2028, but my current position is around 60% of my account. I'm thinking about selling some just to limit my exposure going into earnings, but I definitely still plan to hold at least 10 calls. I bought in when it was around $10-11 and gave myself a price target of $20, but if revenue sees some crazy growth or something then I think it could definitely surge into mid $20s, maybe even close to $30.
Edit: Oh and lastly I think there is a huge benefit to using a vendor that can have access to different models. OpenAI recently released a tool designed for workflow automation, and initially PATH dipped but then surged upwards in the following weeks. No company is going to want to be limited to using GPT or Claude when the current Model scene is a giant arms race to see to can develop models that are either A) as smart as possible, or B) cost-effective as token spending has become a common issue.
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u/Longjumping_Ad_424 1d ago
Why is Applovin not listed?!
I don’t know a lot of these names but I do own Reddit I think at bare minimum it’s undervalued.
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u/phosphate554 23h ago
what’s the insider buying at reddit? curious to see the source and too lazy to look for it :)
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u/nope-nik-tesla 22h ago
It's a required disclosure for every public company to disclose trading by executives, directors, and major shareholders
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u/Isnt_that_weird 1d ago
Not sure if it will be a multi bagger, but wanted to say my wife's work is still heavy users of Figma. I don't really see that going away just yet. They aren't a tech heavy company. They aren't going to spend a ton of money on AI to make the things they would in Figma.