2 tech stocks surging on the ASX today

Two of my favoured tech stocks are soaring on the ASX today – despite no official announcements from either company.

And that’s despite the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) sinking 0.3% today, after some strong gains in recent weeks.

Could it be that fund managers are anticipating strong earnings results when these two companies report their financial results next month?

Speedcast International Ltd (ASX: SDA)

Speedcast’s share price has jumped nearly 8% to $4.12 in late afternoon trading.

Speedcast is a satellite broadband provider that has grown rapidly thanks to a number of acquisitions in a heavily fragmented market. The company has thousands of customers that are mostly unable to get traditional broadband services because they are at sea, on remote islands or in remote locations. The company’s share price has boomed more than 60% higher since we mentioned the company back in April 2015 as a ‘hugely promising tech stock’.

Over The Wire Holdings Ltd (ASX: OTW)

Over the Wire’s share price has jumped more than 6.7% to $2.40 today.

Over The Wire is a small technology company operating data centres as well as voice and fibre networks, mostly catering to corporate customers. Given the mergers and acquisitions in the technology sector, it seems highly likely that Over The Wire is in the sights of at least one of its larger competitors. The good news is that the company is generating strong growth and is profitable – and expects to report net profit after tax of $2.7 million for the 2016 financial year.

Foolish takeaway

Given the tailwinds in the tech space, it’s hard not to imagine these two companies blowing investors’ expectations out of the water when they report full-year results. Keep an eye on both companies.

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Motley Fool writer/analyst Mike King doesn't own shares in any companies mentioned. You can follow Mike on Twitter @TMFKinga

The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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