In this article, we deep dive into the 5 Stocks With Explosive Returns. For a deeper discussion and an extended list, please see 10 Stocks With Explosive Returns.
The New York Stock Exchange building. Photo by Дмитрий Трепольский on Pexels
5. Atlassian Corp. (NASDAQ:TEAM)
Atlassian saw its share prices climb by 15.35 percent on Friday to finish at $107.61 apiece, as investor funds poured back into software stocks amid a flurry of strong earnings from its peers, while loading portfolios ahead of business updates next week.
In a notice to investors, Atlassian Corp. (NASDAQ:TEAM) said that it is set to participate in two conferences over the next few days—the Bank of America Global Technology Conference on Tuesday, June 2, as well as the Mizuho Technology Conference on June 10, a Wednesday.
Investors are expected to watch for business cues, as well as an updated outlook for the short-term period.
In other news, Atlassian Corp. (NASDAQ:TEAM) earlier this month unveiled a new flexible commercial called Flex, designed for the AI era.
According to the company, Flex is a new licensing approach to help complex enterprises adopt its AI-powered platform with speed and flexibility amid rapidly transforming business needs.
Rather than predict usage years in advance, Atlassian Corp. (NASDAQ:TEAM) said that its largest customers will be able to flex, adopt, and scale across Atlassian’s portfolio, ensuring their investment keeps pace with how their teams actually work.
“Enterprise customers are increasingly tapping into the full breadth of the Atlassian platform, as they look for more ways to connect their teams, work, and knowledge through the power of AI,” Atlassian Corp. (NASDAQ:TEAM) CEO Mike Cannon-Brookes said.
“With Flex, our largest customers can stay agile—quickly scale up Rovo, try new apps and innovations, and adapt as their businesses change—while getting full value from what they pay for. No three-year cycles, no predicting seat usage.”
4. BBB Foods Inc. (NYSE:TBBB)
BBB Foods soared by 15.55 percent on Friday to end at $37.82 apiece, after hinting at an expansion program with the raising of $22.75 million in fresh funds from a follow-on offer.
In an updated report on Thursday, BBB Foods Inc. (NYSE:TBBB) announced plans to sell 700,000 Class A common shares at a price of $32.50 to raise funds “for general corporate purposes, which may include making strategic investments.”
The offer forms part of a broader $432 million share sale, the balance of which, covering 12.6 million shares, is set to be sold by certain selling shareholders.
The offer is expected to close on Monday, June 1, subject to customary closing conditions.
BBB Foods Inc. (NYSE:TBBB) also granted its underwriters a 30-day option to purchase up to 1.995 million additional shares at the FOO price from the company itself, which could potentially boost total funds raised to $87.6 million.
In other news, BBB Foods Inc. (NYSE:TBBB) posted a 541.8 percent wider net loss in the first three months of the year at 558.2 million Mexican pesos from only 86.98 million Mexican pesos posted in the same period a year earlier.
Total revenues, however, increased by 33.4 percent to 22.86 billion Mexican pesos from 17.13 billion Mexican pesos year-on-year.
3. NetApp Inc. (NASDAQ:NTAP)
NetApp climbed to a fresh all-time high on Friday, as investors took heart from its strong earnings performance in the fourth quarter of fiscal year 2026, supported by the rapidly growing AI.
In intra-day trading, the stock surged to its highest price of $192.83 before paring gains to finish the day just up by 22.39 percent at $174.29 apiece.
In a statement, NetApp Inc. (NASDAQ:NTAP) said that it was able to grow its net income by 19 percent to $404 million from $340 million in the same period last year, while net revenues increased by 12.47 percent to $1.948 billion from $1.732 billion year-on-year.
For the full fiscal year, net income grew by 8 percent to $1.276 billion from $1.186 billion, while net revenues inched up by 5 percent to $6.925 billion from $6.572 billion year-on-year.
“Fiscal year 2026 was a landmark year for NetApp with record results across revenue, gross profit, operating income, cash flow from operations, and free cash flow. Our industry-leading hybrid cloud, intelligent data infrastructure platform, trusted by the world’s leading organizations, is powering customers’ AI driven transformations, delivering secure, high-performance access to data wherever it resides,” NetApp Inc. (NASDAQ:NTAP) CEO George Kurian said.
“We achieved our target operating margin while launching next-generation AI solutions and expanding strategic partnerships. As enterprises scale their AI ambitions, NetApp’s unified data platform and flexible offerings position us for sustained growth,” he noted.
2. Okta Inc. (NASDAQ:OKTA)
Okta saw its share prices climb to a fresh four-year high on Friday, as investor sentiment was boosted by its strong earnings performance in the first quarter of fiscal year 2027.
In intra-day trading, the stock surged to a record high of $124.79 before paring gains to end the session just up by 30.14 percent at $123.27 apiece.
In a statement, Okta Inc. (NASDAQ:OKTA) said that it grew its net income during the period by 19 percent to $74 million from $62 million.
Revenues increased by 11 percent to $765 million, thanks to an 11 percent jump in subscription revenues at $750 million.
“AI agents are rapidly becoming a new workforce inside every organization, creating a wave of identities that must be secured and governed alongside human users,” Okta Inc. (NASDAQ:OKTA) CEO Todd McKinnon said.
“We’re expanding our opportunity as the world’s leading independent and neutral identity provider and helping customers make identity the unified control plane for their secure agentic enterprise,” he noted.
Looking ahead, Okta Inc. (NASDAQ:OKTA) is confident about the prospects for its business, with revenues in the second quarter expected to grow by 9 percent year-on-year to $790 million.
For the full fiscal year, total revenues are projected at $3.185 billion to $3.205 billion, representing growth of 9 to 10 percent year-on-year.
1. Dell Technologies Inc. (NYSE:DELL)
Dell Technologies extended its winning streak to a 7th straight session on Friday to climb to a new all-time high, as investors gobbled up shares after the company clinched a new $10-billion contract with the US government and posted a strong earnings performance in the first quarter of fiscal year 2027.
In intra-day trading, the stock climbed to its highest price of $429.15 before paring gains to finish the session just up by 32.76 percent at $420.91 apiece.
The Department of Defense announced on Wednesday that it awarded Dell Technologies Inc. (NYSE:DELL) a five-year contract to deliver a suite of software to the US military, including Microsoft 365, advanced cloud subscriptions, and on-premises licensing capabilities.
The company bested other competitors under a competitive selection process.
Dell Technologies Inc. (NYSE:DELL) is a major buyer of Windows PC licenses and maintains a long-term partnership with Microsoft.
The Pentagon said that the agreement is expected to save the agency $422 million annually by consolidating existing IT budgets into a single, efficient vehicle.
In other news, Dell Technologies Inc. (NYSE:DELL) posted a strong earnings performance in the first quarter of the year, with net income soaring by 256 percent to $3.4 billion from only $965 million in the same period last year. Net revenues increased by 88 percent to $43.8 billion from $23.4 billion year-on-year.
While we acknowledge the potential of DELL to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than DELL and that has 100x upside potential, check out our report about the cheapest AI stock.
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