2 Glorious Growth Stocks Bucking the Recent Tech Sell-Off
2026-07-21 10:30
•Anthony Di Pizio •The Motley Fool
••••• •••• Axe Capital view
Two Tech Growth Stories Defying the Sell-Off
Despite a tech slump led by AI chip stocks, Atlassian and CrowdStrike are holding their ground.
The recent tech sell-off, mainly driven by fears around AI semiconductor stocks like Broadcom and Micron, has hit the Nasdaq hard, down 3.6% in the past month. Yet, here’s a twist: Atlassian and CrowdStrike are posting impressive gains, up 10.5% and 18.9% respectively. Atlassian’s valuation sits comfortably at a 3.9 price-to-sales ratio, well below its historical norm, making it a rare cheap growth play with solid momentum from its AI platform, Rovo. CrowdStrike, dominant in cybersecurity with strong AI-enabled revenue growth, looks a bit pricey at a 40.5 P/S, leaving limited room for near-term upside. South African investors should watch these trends through the lens of USD/ZAR. A shrug in global tech could mean dollar strength, pressuring the rand and local tech-related earnings. For local counters, the story highlights why selective exposure to global tech themes matters, but SA’s market is better off watching FX and banking sectors for clearer moves. this is just my opinion and not financial advice
I would buy Atlassian for its value and growth potential, hold CrowdStrike but be mindful of its rich valuation, and keep an eye on the USD/ZAR as a gauge of global tech sentiment’s impact on local markets.
- TEAM
- CRWD
- USD/ZAR
- Global tech sell-off worsens, dragging these stocks down
- USD strengthens further, impacting rand-denominated gains
6/10
While the Nasdaq-100 technology index has declined 3.6% over the past month due to AI semiconductor stock weakness, Atlassian and CrowdStrike have outperformed with one-month returns of 10.5% and 18.9% respectively. Atlassian, trading at a cheap 3.9 P/S ratio, benefits from its AI platform Rovo and large enterprise customer base. CrowdStrike's Falcon platform dominates cybersecurity with strong growth in AI modules, but its 40.5 P/S ratio leaves limited near-term upside.
This article was originally published by The Motley Fool and has been adapted here for Axe Capital Trading News.
Publisher: The Motley Fool
Author: Anthony Di Pizio
Categories: Equities, Earnings, Technology, AI, Semiconductors
Tickers: TEAM, CRWD, AVGO, MU
Sentiment: Mixed - Stock is outperforming with 10.5% one-month gains, trades at attractive 3.9 P/S ratio (below 3-year average of 10.3), has 350,000+ enterprise customers, and shows accelerating revenue growth (32% YoY) driven by its AI platform Rovo. Author personally holds the stock. While the stock is outperforming with 18.9% one-month gains and shows strong growth (24% ARR growth, 250% sequential increase in AI modules), its valuation is concerning at 40.5 P/S ratio, significantly higher than cybersecurity rivals, leaving limited room for near-term upside.
Keywords: tech sell-off, AI semiconductors, growth stocks, enterprise software, cybersecurity, valuation, AI modules
Insights:
- TEAM: Positive: Stock is outperforming with 10.5% one-month gains, trades at attractive 3.9 P/S ratio (below 3-year average of 10.3), has 350,000+ enterprise customers, and shows accelerating revenue growth (32% YoY) driven by its AI platform Rovo. Author personally holds the stock.
- CRWD: Neutral: While the stock is outperforming with 18.9% one-month gains and shows strong growth (24% ARR growth, 250% sequential increase in AI modules), its valuation is concerning at 40.5 P/S ratio, significantly higher than cybersecurity rivals, leaving limited room for near-term upside.
- AVGO: Negative: AI semiconductor stock experiencing steep losses as part of the broader tech sell-off in the Nasdaq-100 index.