Broadly speaking, technology stocks are ripping higher this year, with the Nasdaq-100 index jumping 27% so far. But the sector is still reeling from a very difficult 2022, and many individual stocks still have plenty of ground to make up.

The three stocks featured here just reported their financial results for the first quarter of 2023, and all three put in a standout performance. Investors might want to take the opportunity to buy them while they're still down 70% to 88% from their all-time highs. Because with these strong performances, they aren't likely to remain down. Here are the details.

1. Confluent's largest customer cohort continues to outperform

Data streaming is a technology rapidly growing in importance for businesses because consumers are increasingly demanding more live experiences from their digital products and services. Confluent (CFLT 4.92%) is a leader in the industry, and some of the largest companies in the world are flocking to its platform.

Cloud computing allows businesses to operate online, and every interaction within their digital ecosystem creates data. The ability to use that information instantly is a game changer for the customer experience; a retailer, for example, can manage inventory in real-time so products never go out of stock. And an online sports betting platform can offer live markets during a game because data streaming allows them to calculate odds, feed them to the users, and accept bets -- all within seconds.

The technology has implications for almost every industry, and International Data Corp. predicts 90% of the world's 1,000 largest companies will be using it by 2025.

In the first quarter of 2023, Confluent generated $174.3 million in revenue, up 38% year over year and well above its $168 million forecast. But there was an even more impressive figure: The number of businesses spending $1 million or more on Confluent's platform surged 53% -- more than three times faster than the company's customer base grew overall.

Confluent has a significant growth runway ahead because it thinks the data streaming opportunity is worth $60 billion right now. Despite a 28% gain for its stock in 2023, it remains 70% below its all-time high, so it's not too late for investors to buy.

2. DigitalOcean continues to outgrow its trillion-dollar competitors

DigitalOcean (DOCN 2.73%) is a provider of cloud computing services that allow its customers to store data, host websites, and even develop software. It has one significant point of difference from its major competitors like Amazon Web Services (AWS) and Microsoft Azure: DigitalOcean targets small to medium-sized businesses with under 500 employees.

It's a lucrative segment of the cloud market because DigitalOcean can develop a relationship with businesses in their start-up phase and then reap the financial rewards when they begin to scale up. The company offers personalized service, cheap pricing, and a simple cloud platform with one-click deployment tools designed to suit its target customers. Other cloud providers are more focused on large enterprise customers, so they don't typically offer a competing value proposition for small businesses. 

As of Q1, DigitalOcean had 146,500 customers spending more than $50 per month. That includes 15,000 "scalers," which are its top spenders, each contributing an average of $1,962 per month to DigitalOcean's revenue. Speaking of which, the company generated $165.1 million in revenue during the quarter, marking an increase of 30% year over year. That was a faster growth rate for the period than AWS (16%), Microsoft Azure (27%), and Alphabet's Google Cloud (28%) delivered!

DigitalOcean's stock price has jumped 36% this year, but it's still down 72% from its all-time high. The company is playing in a $98 billion segment of the cloud industry, which could double by 2026. So investors might want to take advantage of its discounted stock price while they still can.

3. Redfin stock has soared 149% in 2023

Redfin's (RDFN 1.37%) got off to a strong start in 2023, with the stock price up 149% so far this year. But it's still down 88% from its all-time high. The real estate technology company struggled over the last 18 months because the U.S. Federal Reserve embarked on the most aggressive campaign to hike interest rates in its history to fight soaring inflation. That's directly impacting demand for housing because consumers can't afford to borrow as much money, leading to a slowdown in Redfin's business.

First, the company was forced to close its RedfinNow direct buying business, where it purchased homes directly from willing sellers and tried to flip them for a profit. It was becoming too risky to hold hundreds of houses in inventory while home sales were slowing and prices were leveling off. Closing the segment was an opportunity for the company to refocus on its core brokering business and chart a path toward profitability.

Redfin employs 1,876 lead agents covering 98% of the U.S. housing market (geographically), allowing the company to operate at a level of scale that smaller independent realtors can't match. As a result, it charges listing fees as low as 1%, undercutting the more common rate of 2.5% and creating a win-win for Redfin and its sellers.

The company is so popular that it represented 0.78% of the nearly 2 million houses sold in America during the first quarter of 2023. That might not sound like a big number, but there are 3 million registered agents across the country, so Redfin is punching well above its weight.

Due to the absence of direct buying, Redfin's revenue crashed 45% in Q1 compared to the same quarter last year (as expected). But Redfin is now a much leaner, healthier business, and it expects to deliver positive non-GAAP earnings before interest, tax, depreciation, and amortization (EBITDA) this year. That's primarily why investors have sent Redfin stock soaring in 2023, and it might just be getting warmed up.