Are These The Best Tech Stocks To Buy In 2020?
As we enter the year 2020, the five most valuable companies on U.S exchanges are all tech stocks. Due to the pandemic, the market has experienced some wild swings over the past few months. Many investors have seen the shift made by companies to remote work. And schools opted for online learning. This in effect has led investors looking for top tech stocks that are benefiting from this monumental change.
First of all, we have to understand that not all tech companies are created equal. Thus it’s natural that they do not benefit the same way. If you are new to investing, the technology industry could be the best starting place for investors seeking explosive returns. Now that most mega stocks have reported strong earnings, the Nasdaq Composite has also reached its all-time highs. The question here is though, would it still be worth buying despite the premium price? Is buying high to sell higher a feasible strategy right now?
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Why Tech Stocks Could Continue To Thrive Despite The Coronavirus Pandemic
No matter how you slice it, tech stocks come in all forms. Some would definitely benefit far more than others, it all depends on which market the company is targeting. Products and services in e-commerce, gaming to video streaming, and video conferencing technology ensure that we can still live life in a somewhat normal way. Most importantly, these areas of technology probably won’t go away even after the pandemic. And that’s where the great opportunities lie for investors looking for the best tech stocks to buy now.
Also, it’s amazing to see how companies like Amazon (AMZN Stock Report),Tencent (TCEHY Stock Report) and Microsoft (MSFT Stock Report) are all experiencing growth during these trying times. They remain perfectly poised for the long term. That’s despite all these tech stocks having grown to a considerable size. Let’s take a look at these emerging tech stocks that could be a long-term winner if our investment horizon is long enough.
Top Tech Stocks To Buy Now [ Or Sell]: Sea Limited
Shares of Sea Limited (SE Stock Report) were moving higher again this week even though there was no specific news out regarding the Asian e-commerce and digital gaming company. It seems like the stock is moving in the same direction as other e-commerce stocks. This is after strong earnings reports from Shopify (SHOP Stock Report) and Amazon.
The company is slated to report their quarterly earnings on August 18th. Many investors seem to be quite bullish on its upcoming results especially its e-commerce site, Shopee. This came after two of the most closely watched companies in the e-commerce sector delivered results that surpassed analysts estimates. That could probably explain the sharp rise in SE stock in recent weeks.
Top Tech Stocks To Buy Now [ Or Sell]: NVIDIA
The semiconductor industry had quite a shake-up during this earning season. Intel (INTC Stock Report) appears to no longer be the leader in the space. And its stock price plunged more than 20% during a single intraday trading. This comes as the semiconductor giant delayed its launches of its next-gen chips. Intel’s market cap had fallen behind NVIDIA (NVDA Stock Report). And in case you haven’t noticed, NVDA stock has been quietly and consistently trending higher, more than doubling off the March low.
The company has recently announced that it will be reporting its second quarter results on August 19 after the closing bell, one day after Sea Limited’s report. There wasn’t any specific news in July that could drive up the share price significantly. Investors can only assume that its stock’s strong July performance is simply to the powerful momentum it has had all year. Or perhaps the acquisition of Mellanox Technologies, which closed earlier this year, has been a contributing factor to boost NVDA stock price. Recall that Mellanox is a maker of high-performance networking products. The acquisition appears to be a positive move for NVIDIA’s AI-driven data center platform. The question is, can NVDA stock continue its strong performance in the run up to its earnings release?