Investors who seized the moment and bought the dip on S&P/ASX 200 Index (ASX: XJO) tech stock Megaport Ltd (ASX: MP1) in mid-January will be sitting pretty today.
How pretty?
Well, on 13 January, less than seven weeks ago, shares in the network-as-a-service solutions provider closed at a more than one-year low of $6.61.
At the time, a lot of investors remained on the sidelines, concerned that trying to time the low in Megaport shares would be akin to trying to catch a falling knife.
But with the benefit of hindsight, I think it's safe to say we can now all agree that the ASX 200 tech stock was trading for an absolute bargain. At least over the shorter term.
So, just how much would a $10,000 investment in Megaport shares on 13 January be worth today?
Going with the closing price of $6.61 a share, a $10,000 investment on that day would have netted you 1,512 shares (excluding of any brokerage fees).
At market close on Thursday, those same shares were trading for $11.27 apiece. Meaning your 1,512 shares, purchased less than seven weeks ago, would now be worth a whopping $17,040.24.
Or a gain of 70.4%.
Boom!
What's been lifting the ASX 200 tech stock?
The Megaport share price has been trending steadily higher over the past six-plus weeks after hitting its one-year-plus lows.
The ASX 200 tech stock received a huge boost last Thursday, 20 February, following the release of the company's half-year results.
Highlights for the six months to 31 December included an 18% year on year increase in annual recurring revenue (ARR) to $226.6 million. Total revenue of $106.8 million was up 12%.
Also grabbing investor interest was the 12% year on year increase in gross profits, which came to $74.7 million. And net cash flow of $15.7 million was up 26% from H1 FY 2024.
"During H1 FY25 we achieved top-line revenue growth across all regions while making ongoing investments to drive sustainable, long-term growth," Megaport CEO Michael Reid said at the time.
The ASX 200 tech stock also looks to have caught tailwinds after the company upgraded its full-year revenue guidance.
Management expects FY 2025 revenue to be between $216 million and $222 million, up from prior guidance of $214 million to $222 million.
If Megaport can deliver on these expectations, it will equate to year on year revenue growth of 11% to 14%.
Shares in the ASX 200 tech stock closed up 19.5% on the day it reported those results.
