Are These The Best Tech Stocks To Buy In August?
Tech stocks stood out from the rest of the market when it comes to stock price appreciation. No doubt, technology has become more embedded into our daily life, be it work, entertainment, and everything in between. This in effect, 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.
Now that we are in the midst of earnings season, many companies are reporting how they fared during the second quarter. Shares of technology companies have leaped ahead of the broader market. And many analysts believe such a phenomenon isn’t changing anytime soon. And they were right. Shares of Microsoft (MSFT Stock Report) and Shopify (SHOP Stock Report) both reported solid earnings results, just to name a few. Considering that tech stocks are generally resilient during the pandemic, could these three tech stocks deliver solid growth moving forward?
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Top Tech Stocks To Buy Or Sell Now: PayPal
Shares of PayPal Holdings (PYPL Stock Report) rose nearly 5% after the digital payment company reported its strongest quarterly performance ever. This is simply due to the accelerated shift to online and contactless payments during the coronavirus pandemic. The company is firing on all cylinders as it beat Wall Street’s estimates on all key metrics. Some investors are wondering if the accelerated digital trends during the pandemic would be sustainable. It appears that the company’s strong guidance indeed provides affirmation to the growth prospects of the business.
Here’s what the management team says: “In the midst of the Covid-19 pandemic, digital payments have become more important and essential than ever. Our record performance in the second quarter — our strongest quarter ever — reaffirms the relevance of PayPal in the unfolding digital future. We’re committed to supporting our consumers and merchants as they work to safely navigate this new reality.”
Top Tech Stocks To Buy Or Sell Now: Fastly
No matter how you slice it, cloud technology is the future of the technology industry. And Fastly (FSLY Stock Report) is an up-and-coming tech stock to watch for strong growth. For investors who stumble upon Fastly stock for the first time, Fastly is a $8 billion company which operates an ‘edge cloud’ platform for processing, serving, and securing its customers’ applications.
As the world becomes increasingly digitized, the importance of cloud services offered by Fastly are becoming more pronounced than ever. Sure, the company lacks profit and positive free cash flows now. However, with the pandemic showing no signs of being contained, it’s possible that more people will continue to stay home in the near-term. These trends would drive higher internet traffic, potentially causing higher demand for Fastly’s cloud technology and services. The cloud computing company will be reporting their second quarter earnings on 5th August. In anticipation of the earnings release, would you be betting on FSLY stock to beat the market’s expectations?
Top Tech Stocks To Buy Or Sell Now: Qualcomm
Shares of Qualcomm (QCOM Stock Report) soared 12% after the market closed following the release of Qualcomm’s third-quarter financial results. The worst of economic damage from Covid-19 appears to be over, especially in the semiconductor market. The company posted a beat on earnings and revenue, reporting earnings of 86 cents per share and revenues of $4.89 billion.
In fact, Covid-19 actually has somewhat positive impacts on the cloud and gaming markets. In addition, the company finds itself at the epicenter of a tremendous 5G growth narrative that could potentially drive QCOM stocks higher during the second half of 2020. To top it all off, Qualcomm patent’s deal with Huawei is a significant catalyst for a massive breakout. The patent deal with Huawei could see Qualcomm receiving $1.8 billion in settlement in the next quarter. Recall that Qualcomm patents are part of the design of almost all phones globally, including Huawei’s. If these don’t convince you that QCOM stock is a top tech stock to buy, I don’t know what will