Should You Buy Or Sell These Tech Stocks Before July 2020?
Tech stocks have spent the past few years standing out from the rest of the market pack. Technology has become more ingrained into our daily life, be it work, entertainment, and everything in between. This leads investors to look for the best tech stocks to buy in 2020. And when it comes to investing, technology is one of the best sectors to deploy investors’ savings in the midst of a recession. After all, technology is all about making improvements and creating efficiency. And when the going gets tough, many organizations turn to tech to help keep their companies afloat.
From the pandemic, we have witnessed how tech companies have managed to keep a large part of our lives running with minimal disruptions. Without technology, our odds of successfully implementing lockdowns to contain the virus will be even lower. Furthermore, global economic activities will literally come to a screeching halt if not for the services provided by technology. Contact tracing would be extremely difficult if not impossible, further lowering our chances of fighting against the insidious virus. All of these are possible because we have great software and hardware that enable us to do so much even in the comfort of our homes. That said, are these tech stocks on your watchlist right now?
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Top Tech Stocks To Watch Before July: Apple Inc
Shares of Apple (AAPL Stock Report) rose to another record high. The company’s focus on integration across its products is receiving huge support from investors. This came after Apple announced the new software for its products, deepening the integration of its various operating systems. Furthermore, it will be building its own processors for its laptops, reducing reliance on Intel. AAPL stocks started gaining momentum last week when the company revealed that over half a trillion dollars transacted over its App Store ecosystem in 2019. The astonishing figure revealed how powerful the company’s platform has become. It also serves as an example of the company’s ability to monetize its 1.5 billion active devices. This signals strong growth lies ahead in its services and applications segment. Some analysts also extended their target price of AAPL stock to reach $400 in the near-term.
What Are Analysts Saying About AAPL Stock?
Citi’s analyst Jim Suva lifted his 12-month price target for the stock to $400. He reiterated a buy rating for the stock. Here are a few reasons why. The likely debut of new 5G iPhones this fall could take the company to reach a new height. The rapid growth in Apple’s wearables and services segment can also power the future growth of Apple when the hardware business slows down.
“Perhaps the biggest takeaway from today’s event was the reassurance that Apple is still driving innovation and new ways to use technology hardware and software,” wrote Bank of America’s Wamsi Mohan, who pointed to “AirPods incorporating surround sound and spatial audio, the Watch supporting more health workouts, tracking user dance movements and tracking sleep.”
Analysts, of course, could always be wrong. It’s never easy to predict in which way shares of a particular company could be heading in a short time frame. But the company does seem attractive considering its long-term growth prospects in the current valuation. With all that in mind, would you consider including AAPL stock in your portfolio?
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Top Tech Stocks To Watch Before July: Dell Technologies
Shares of Dell Technologies (DELL Stock Report) spiked 16% on pre-market on Wednesday. This came after the company is examining options including a spinoff for its roughly $50 billion stakes in VMware Inc. (VMW Stock Report) as the PC maker is looking to boost the value of its shares. The company reported its first-quarter revenue of $21.9 billion, beating Wall Street’s estimates of $20.8 billion in sales. DELL stock is currently 6% lower year to date and closed yesterday at $49.01.
“Customers need essential technology now more than ever to put business continuity, remote working and learning plans into practice,” COO Jeff Clarke commented in a statement. Dell says it is now the No. 2 commercial PC maker, with market share of 26%, citing figures from market researcher IDC.
Like most companies, Dell withdrawn its guidance for this fiscal year due to the ongoing macroeconomic risks resulting from the novel coronavirus. That said, revenue in the second quarter could be seasonally lower than previous years following the strong demand recorded in February and March. This could suggest that sales were concentrated earlier this year as companies were preparing for their workforce to transition to remote working environments. Should the spinoff materialize, it could allow Dell to be valued more fully. After all, it was trading at a discount to its VMware stake. As such, is it a good time for investors to buy DELL stock now?