Are These Top Tech Stocks Worth Investing In Now?
The modern world today is the result of decades of innovation in technology. It would make sense then, that tech stocks often outperform the broader market. Not only has the sector brought investors massive returns, but it also spoils them for choices. For instance, some of the best stocks from 2020 consist of the likes of Zoom (NASDAQ: ZM) and Square (NYSE: SQ). To point out, both companies’ share prices have more than tripled over the past year. Despite being tech companies, one operates as a teleconferencing platform while the other is in the financial tech sector. If anything, this speaks to the viability of tech across industries. How about 2021 you might ask? There is no doubt plenty of top tech stocks to choose from right now as well.
If you are looking to bank in on ad trends recovering to pre-pandemic levels, top ad-tech stocks like Magnite (NASDAQ: MGNI) are available. Not too familiar with that? Another option would be consumer tech which continues to pick up speed. In that case, you could turn to the likes of Nvidia (NASDAQ: NVDA) which could stand to benefit from the upcoming 5G technology. Whatever way you cut it, there is likely a tech stock for any investor out there. Could one of these four be a good fit for your portfolio?
Best Tech Stocks To Buy [Or Sell] Now
- Energous Corporation (NASDAQ: WATT)
- AXT Inc. (NASDAQ: AXTI)
- Quotient Technology Inc. (NYSE: QUOT)
- MicroStrategy Inc. (NASDAQ: MSTR)
First up, we will be looking at Energous. It is a global leader in Wireless Charging 2.0 technology. Impressively, the company’s award-winning WattUp solution is the world’s first wireless charging tech that facilitates both contact and distance charging. Simply put, the company’s tech drastically improves on existing wireless charging through over-the-air charging. In theory, Energous’ groundbreaking technology could find plenty of applications across several industries. Just last month, the company announced that it had completed trials of its first-in-class wirelessly charged equine health-tracking sensor. Energous also revealed that it is on track to hit the market in Q1 2021.
More importantly, WATT stock nearly doubled last Friday on reports that it could be working with Apple (NASDAQ: AAPL). The stock has since dipped by 18% today as of 1:17 p.m. ET. Perhaps today’s dip could present a good opportunity to buy it at a discount?
For the most part, the rumor indicates that Energous will be helping Apple develop a wireless charging battery pack for the newest iPhones. Essentially, the battery pack would be magnetically installed on Apple’s iPhone 12 product line via its proprietary MagSafe technology. Should this be the case, Energous could be looking at a massive client moving forward. Its expertise in wireless technology would synergize well with Apple’s core business. Providing ‘true wireless’ charging tech would provide another dimension of convenience for smartphone users across the board. Given all of this, do you think it is a good time to invest in WATT stock?
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Following that, we have AXT, a material science company that develops and manufactures semiconductor components. In detail, the company makes high-performance compound and single element semiconductor substrate wafers. AXT’s wafers come into play when typical silicon substrate wafers fail to meet the performance requirements of semiconductors. Because of this, the company’s end markets include 5G infrastructure, data center connectivity, LED lighting, and satellite solar cells to name a few. Given the application of AXT’s offerings across several booming industries, I could see it benefitting from several tailwinds. In fact, AXTI stock has gained by over 25% since last Friday on account of a stellar earnings report.
Particularly, the company reported total revenue of $27 million in its fourth-quarter fiscal, a 46% year-over-year increase. Adding to that, the company more than doubled its net income over the same period as well. AXT cites strong growth in its indium phosphide arm as a key factor of its solid performance throughout the fiscal year. This was especially true as demand for its 5G-related offerings increased in Q4 which Is “typically a seasonally down quarter.”
Given the recent shortage of semiconductor chips, this does make sense. Moving forward, CEO Morris Young explained that AXT is in a strong position to leverage the gaining momentum of 5G technology. All things considered, will you be adding AXTI stock to your portfolio?
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Quotient Technology Inc.
Quotient Technology is a leading digital media and promotion tech company. In short, Quotient creates omnichannel brand-building and sales-driving opportunities for its clients. The likes of which include, Coca-Cola (NYSE: KO), Dollar General (NYSE: DG), and Johnson & Johnson (NYSE: JNJ). To elaborate, Quotient integrates consumer spending data, location intelligence, and purchase intent data on its proprietary platform. In turn, this data from millions of shoppers are put towards delivering actionable insights for organizations. Of course, Quotient’s services would be vital now. This is because businesses across industries need to be aware of consumer spending habits amidst the current pandemic. To illustrate, QUOT stock is up by over 150% since the March selloffs.
In terms of business highlights, Quotient revealed a recent expansion of its current services with one of its major clients. According to Quotient, it will be launching In-Lane Digital Promotions (ILDPs) at a “major drug retailer” in the second half of 2021. Essentially, ILDPs are targeted promotions that are printed on physical receipts. Given the omnichannel nature of Quotient’s offerings, this does make sense.
Moreover, as vaccine rollouts continue, consumers could be making more physical shopping trips. In turn, this would further incentivize the adoption of Quotient’s ILDP solution in the long run. Could this make QUOT stock a top tech stock this year? I’ll let you decide.
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Topping off our list is business intelligence company MicroStrategy. To begin with, the company provides big-data analytics services on its comprehensive enterprise platform. Aside from catering to numerous Fortune Global 500 companies, MicroStrategy has also been in focus because of its investments in Bitcoin. Having over 71,000 bitcoins in its reserves, the company is no doubt a key cryptocurrency player. Furthermore, news broke earlier this month that MicroStrategy could be looking to establish a blockchain analytics team. Given its clear interest in Bitcoin, investors looking to cash in on the digital currency’s growth would look towards the company’s shares. As a result, MSTR stock is up by over 100% year-to-date.
If that wasn’t enough, the company also recently announced that it had completed a $1.05 billion debt offering. Last Friday, CEO Michael Saylor mentioned that MicroStrategy would be using net proceeds from this offering to acquire $1 billion worth of bitcoins. Not to mention, Bitcoin continues to surge in price as it surpassed the $56,000 mark over the weekend.
With this placing it at a market value of $1 trillion, general hype around the cryptocurrency would continue to rise. By and large, it seems that MicroStrategy is set to ride the tailwinds brought on by Bitcoin for now. With that in mind, do you see MSTR stock as a good investment now?