Are These The Top Tech Stocks To Buy Or Sell In September 2020?
Tech stocks have driven much of the recovery in the stock market this year. The S&P 500 and Nasdaq Composite continued to make record highs backed up by some of the top technology stocks in the market. The broad appeal of making money with top tech stocks have gained acclaim from high-risk investors across the globe. Granted, there have been ongoing concerns about the stock market being top-heavy, dominated by just a handful of companies. Some are even speculating that we are at the edge of the tech bubble about to burst.
But maybe investors should altogether stop worrying about the valuation and focus on the prospects instead. Yes, we all know that tech companies have been pushing the stock market higher. For the past month, all eyes are on Tesla (TSLA Stock Report) and Apple (AAPL Stock Report) in the run-up to their stock splits. That said, we must also bear in mind that without these tech companies, be it cloud computing, e-commerce, social media, or entertainment, we will be in a worse position than we are in now. So really, we shouldn’t worry that the market is reliant on a very few stocks, but rather the market is reliant on a few similar stocks. And when they collectively record gains, it may pose a big win for the market. In light of the recent momentum we see with technology companies, are these tech stocks on your watchlist?
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Top Tech Stocks That Are Making Big Moves This Week: Zoom Video Communications
First, on the list, Zoom Video Communications (ZM Stock Report) made more money than ever in 2020’s second quarter. The company is here to prove that it’s a better performer among the industry peers. It can even beat the tech Goliaths this year. During the intraday trading, investors bid the stock up by almost 9% in anticipation of the second-quarter results after the closing bells. As more and more people are required to work from home, businesses are now heavily dependent on remote communication services to stay connected. As a result, Zoom benefited immensely from such an initiative.
Zoom saw second-quarter revenue grew 355% from a year ago to $663.5 million. This decisively beat the $500 million analysts estimates. The company is projecting a revenue range of $685 million to $690 million for the current quarter. This range is well above the $493 million average analyst estimate. Zoom shares gained in after-hours trading. That added to their already stellar gains year to date. Now that investors’ expectations are sky-high, can the coronavirus-fueled rally continue? Only time will tell.
Top Tech Stocks That Are Making Big Moves This Week: DocuSign
Next up, DocuSign (DOCU Stock Report) has also benefited tremendously from the coronavirus pandemic. Since companies of all sizes opt for remote work, DocuSign’s time-saving e-signature application has been the key driver for growth. For those who have been following our feeds closely, you would know that we began discussing DocuSign in June, and DOCU stock has since climbed at least 50%.
In the company’s most recent financial quarter, DocuSign saw a record 68,000 new customers. This brought the total to 661,000. This growth represented a 30% year-over-year gain, an increase from the 26% mark from a year ago.
Large customers grew at a faster rate of 49% year-over-year. They drove billings, which is the sum of revenue and the change in outstanding contract value, up 59%. Large customers are crucial they make up 88% of revenue. As the last reported quarter was for the 3 months ending April 30, 2020, the full impact of the pandemic has yet to be seen. Considering DOCU stock has been rallying strongly since the start of the year, can investors expect the rally to continue?
Top Tech Stocks That Are Making Big Moves This Week: Advanced Micro Devices
Last, on the list, shares of Advanced Micro Devices (AMD Stock Report) climbed 6.2% on Monday. This comes after a new entry-level graphics processing unit (GPU) made its debut on the company’s website over the weekend. The Radeon RX 5300 GPU promises “exceptional performance and high-fidelity gaming.” It also is reportedly cheaper than a comparable graphics card from rival NVIDIA (NVDA Stock Report).
The under-the-radar launch comes after AMD beat analyst estimates when it reported better-than-expected earnings in July, boosted by notebook and server processor sales. In addition, the company also raised its current-quarter guidance. It is confident it can meet strong demand in the following quarter. Although AMD stock has nearly doubled year-to-date, some experts believe that the stock price appreciation we see today is just the beginning. If you are looking for a semiconductor stock to buy, would AMD stock be your long term buy?
