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Making A List Of Tech Stocks To Watch This Week? 4 To Watch

GameStop may still be the talk of the town, but these companies could be better buys.

tech stocks

Which Of These Tech Stocks In On Top Of Your List Right Now?

When it comes to tech stocks, every metric in the earnings report seems to matter. That’s because any slight miss in the metrics or soft guidance may punish the stock almost immediately in the stock market today. Following a huge run in most top tech stocks since last year, you must be proficient in the tech stocks that you are watching. This means knowing what the company is doing to stay competitive, and whether its growth rate is sustainable, at least in the short to medium term. 

With all these in mind, you can begin preparing a list of top tech stocks to watch for this year. Since the onset of the coronavirus pandemic, it’s undeniable that investors have been focusing a lot on top tech stocks in the market. This is due to most work, learning, and entertainment being done online. For instance, shares of Lizhi (NASDAQ: LIZI), a Chinese podcast platform, soared more than 400% in the past week. When a company’s stock price rises so rapidly that can’t be supported by changes in its fundamentals, investors should be careful. GameStop (NYSE: GME) serves as a good reminder. It’s fine to enjoy the ride while it lasts as long as you don’t get carried away.

Since the Reddit trending frenzy, many investors have forgotten the value of fundamentals. You could say that FOMO has been playing a huge role in the stock market. It’s tempting to chase after the hottest stocks in the market, but strong fundamentals are still crucial when it comes to investing. That said, the market will eventually do what the market does when the hype dies down. With all things in mind, let’s take a look at some of the best-performing tech stocks that have begun trending at the end of the week. 

Top Tech Stocks To Watch Right Now

Pinterest Inc.

First up, Pinterest is an image-sharing and social media company. In brief, its platform allows users to search for and save information on easy-to-access digital ‘pinboards’. The company reported strong revenue growth thanks to holidays and the pandemic lockdown. From the report, the company reported 459 million global monthly active users on its platform vs. 449.4 million expected in a FactSet survey. Revenue came in $706 million as the company continued to see users engaged with its app amid the ongoing COVID-19. Following this news, PINS stock soared in the after-hours trading. Since the market crash in March 2020, the stock has skyrocketed more than 600% as of Thursday’s closing.

“Our investments in ad tools and sales coverage continued to pay off, especially during a strong holiday season. Advertising demand was healthy across different advertiser sizes and verticals, with Retail demand further building off last quarter’s recovery,” the company said in its report.

Besides its first-mover’s advantage in a niche area, Pinterest has not faced the same publicity issues that affect the likes of Facebook (NASDAQ: FB). In addition, Pinterest’s strong growth could position itself as an attractive social media stock to invest in. While PINS stock may still be attractive at current valuation, can it replicate its gains in 2020?

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Unity Software Inc.

Next up, we have Unity Software which reported its fourth-quarter earnings after the bell Thursday. The company’s stock price fell as much as 16% in the after-hours trading. Unity provided soft guidance that fell short of analysts’ most optimistic estimates. The company reported a 39% increase in revenue from a year earlier. While the company’s earnings numbers topped estimates, the company’s guidance was disappointing for investors that bought in before the earnings release. On top of that, the potential upcoming impact from Apple’s privacy changes could also be a valid concern. 

“Unity achieved record fourth quarter and full-year 2020 revenues in an unprecedented and fast-changing technological and economic environment. As the leader in creating and operating tools for the world of real-time 3D content, we continue to invest with the intent to capture what we believe is a substantial opportunity ahead in 2021 and years beyond.”- John Riccitiello, CEO of Unity

Despite soft guidance and the potential impact of Apple’s privacy changes, there are still reasons to be optimistic. For instance, Unity’s augmented reality (AR) solutions could play an important role going forward by allowing developers to build AR applications more quickly. There’s a great chance that Unity would be able to leverage its capabilities to power the trend that could translate into huge gains for shareholders moving forward. If you believe in the potential of what the company has to offer, buying on dips like today could be an attractive option. 

[Read More] Should Investors Buy Qualcomm (QCOM) Stock After Its Recent Pullback?

Snap Inc. 

Like Unity, SNAP stock investors are also bracing for a potential impact from Apple’s privacy changes and soft guidance moving forward. The company beat earnings expectations but the stock fell in the after-hours trading. Revenue increased 62% to $911 million in Q4 2020, compared to the prior year.

Besides, many investors are glad that the net loss fell to $113 million. That represented a decrease of over 53% from a $241 million net loss last year. Snap reported 265 million daily active users, up more than 6% from the 249 million the company reported in October. 

“Our team has worked tirelessly to help people stay close with their friends and family even while they are physically apart, and we’re proud of the strong results we delivered for our advertising partners this quarter and over the full year. We delivered our first full year of Adjusted EBITDA profitability and, as we look towards the future, we’re excited to build on our investments in augmented reality, mapping, and content to drive our ongoing growth,” CEO Evan Spiegel.

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Twitter Inc.

Last but not least, Twitter is the only one on this list that has yet to report its earnings. The social media company is slated to report its earnings on February 9. So far, it’s been a choppy year for Twitter stock.

Since the start of the year, the company has been trading sideways, sliding from $55 to $45 and back again at $56. The company played a huge role in the presidential administration of Donald Trump. Perhaps one of the main reasons for this choppiness has to do with it.

Admittedly, it may be true that the removal of Trump will likely have an impact on the traffic. But then again, the platform is not just about politics. If you are an avid investor, Twitter serves as a good platform for you to get the latest updates. Not to mention it has a broad spectrum of other use cases where influencers thrived on this platform. There remain avenues for the platform to increase monetization going forward. The question is, will you be watching TWTR stock ahead of its earnings release next week?

By Amos C

Amos is the global markets correspondent for StockMarket.com. His boots on the ground insight into emerging markets has given him the unique ability to stay ahead of new market trends and deliver timely data when it matters most. Based in Asia, Amos has made a point to monitor the foreign markets closely, dissect stock market trends and then apply them to the North American markets; in addition to global markets.

Amos has a deep-rooted background in foreign exchange and commodities. His previous experience working within the cryptocurrency arena has given him the advantage to identify the fast-moving stock market and financial trends. Amos calls Hong Kong home and has been a financial content writer for the last 3 years.

He has managed teams of international media strategists and financial writers to cover all top stories in the stock market each day. His skills include his tireless drive to find the most valid information and actionable details that investors can use to formulate valid decisions on stocks to buy or stocks to avoid. Furthermore, Amos’ ability to cover trending stories across the globe brings StockMarket.com a fresh perspective on key data and how it not only affects the North American markets but also how it could translate to the world markets alike.

Most of the time you can find him diving into corporate filings, focusing on fundamentals that could influence major market moves. One of his passions is researching technology and biotechnology stocks. Some of the most cutting-edge innovations have stemmed from these industries. While many don’t become industry blockbusters, the processes and applications of these innovations has led to some of the biggest developments known to man in the modern age. As a global correspondent, Amos has been able to see both sides of the story as it relates to world news and offers a true, personal approach, cutting through the noise of the mass media. He was integral in reporting on the Hong Kong uprising and doing first-hand research on international sentiment from the novel coronavirus.

In his free time, Amos is an avid fan of music and art and enjoys attending concerts.

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