5 Tech Stocks To Watch In December 2021
With the recent downturn in the stock market, some investors may have lost their appetite for tech stocks. But amid the recent retreat, some investors are still hunting for bargains. No doubt, the concerns over the new Omicron variant, inflation, and other headwinds have sent many large-cap tech stocks down by double digit percentages. Having said that, many remain optimistic about the long-term outlooks for some of the top tech stocks.
That said, the industry continues to innovate and reinvent themselves. For instance, Alibaba (NYSE: BABA) announced earlier today that it will restructure its commerce group by forming two new digital commerce divisions, respectively focused on international and domestic markets. The broader concerns that U.S.-listed Chinese stocks may be forced to delist from the U.S. stock market is also adding pressure to BABA stock. With the sharp sell-off over the past 6 months, some investors are considering initiating a position in China’s Amazon (NASDAQ: AMZN).
Elsewhere, the leading e-commerce company in Latin America, MercadoLibre (NASDAQ: MELI) is also not spared from the pullback despite its tremendous growth recorded during the pandemic. Considering that the growth from the tech space remains respectable, should investors consider buying these tech stocks in the stock market today?
Top Tech Stocks To Watch This Week
- Matterport, Inc. (NASDAQ: MTTR)
- Netflix, Inc. (NASDAQ: NFLX)
- Spotify Technology (NYSE: SPOT)
- Marvell Technology, Inc. (NASDAQ: MRVL)
- Zoom Video Communications, Inc. (NASDAQ: ZM)
If you are into metaverse stocks, then Matterport could be of interest to you. Matterport is a platform for spatial data, enabling companies to digitize any type of space. The company specializes in digital twins, which refers to a digital copy of a real-world place or object. In other words, Matterport dabbles in virtual reality (VR) and this technology can be used in creating the metaverse.
In October, Matterport announced that commercial real estate firm Cushman & Wakefield (NYSE: CWK) has successfully adopted Matterport Capture Services to digitize its global property portfolio. The solution allows Cushman & Wakefield agents to scan properties and create dimensionally accurate and photorealistic digital twins. With that, potential buyers and tenants can now have the additional convenience of viewing properties virtually. During the third quarter, Matterport’s subscription revenue grew 36% year-over-year to $16 million. The company’s paid subscribers rose 35% year-over-year to 53,000, while total subscribers increased 116% to 439,000 within the same period. Keeping this in mind, would you be buying MTTR stock?
The pandemic has negatively affected many companies around the world, but Netflix is not one of those. The ongoing pandemic has confined many around the world to their homes and Netflix offers hours of entertainment for them. Its original series such as Stranger Things and Squid Games have successfully carved a spot for themselves in popular culture. Netflix boasted about 214 million subscribers at the end of its latest fiscal quarter. And it aims to add 8.5 million new subscribers for the next quarter. Its CFO Spencer Neumann said that Netflix is in its “early days”. He estimated that there are 1 billion pay-TV households globally, and that Netflix is eyeing that market.
Last month, Netflix announced the acquisition of Scanline VFX, a company that specializes in virtual production. It has worked with Scanline before on productions such as Strangers Things and Cowboy Bebop. Netflix seemed to be in acquisition mode in recent months. In September, the company spent over $700 million to purchase the Roald Dahl Story Company. The latter holds the rights to author Roald Dahl’s characters and stories. With its eyes on the future, could NFLX stock be one of the best tech stocks to buy in the stock market?
Spotify is one of the most recognizable audio and media streaming platforms in the world. Through its platform, users can access more than 70 million tracks. During the third quarter, the platform’s monthly active users grew 19% year-over-year to 381 million. Its premium subscribers meanwhile grew 19% year-over-year to 172 million.
Last month, the company teamed up with Netflix to launch an all-new Netflix Hub on Spotify. What does the hub offer? Well, fans can access official playlists and official soundtracks of shows and movies on Netflix. Last month, Spotify announced the acquisition of audiobook platform Findaway. The company said that it expects the audiobook industry to grow from $3.3 billion to $15 billion by 2027. Thus, acquiring Findaway is in line with its ambition to be the world’s leading audio platform. Considering Spotify’s grand ambition, could SPOT stock be an interesting addition to your watchlist?
The ongoing global chip shortage is giving semiconductor stocks a boost, and Marvell is no exception. In brief, Marvell develops and produces data infrastructure semiconductor solutions for various sectors. These include data center, carrier infrastructure, enterprise networking, consumer, and automotive/industrial.
The company’s latest fiscal quarter results released last week saw its revenue jump by 61% year-over-year to $1.21 billion. CEO Matt Murphy said that revenue growth increased in each of Marvell’s five businesses. This includes a 109% year-over-year growth in its data center business, which accounted for 41% of the company’s total revenue. Could the company’s strong momentum make MRVL stock a top tech stock to watch?
Zoom Video Communications
Love it or hate it, Zoom’s video conference platform has become a mainstay during the pandemic as remote working became a norm. Its recently released third fiscal quarter results showed an increase in total revenue by 35% year-over-year to $1.05 billion. It saw 2,507 customers contributing more than $100,000 in trailing 12 months revenue, up by about 94% year-over-year. Zoom also said it will launch its own cloud contact center software in early 2022.
The company’s stock however has been under pressure throughout the year despite its revenue growth. After all, investors may have concerns about potential slowdowns in the company’s growth as the economy reopens. Nevertheless, other investors see this as a good time to buy ZM stock as remote working becomes a global norm. With that in mind, would you be adding ZM stock to your portfolio?