4 Top Tech Stocks To Watch As The Market Is Experiencing A Pullback
The stock market rally over the past year has simply been remarkable. Since bottoming in late March after the onset of the coronavirus pandemic, the U.S. stock market took many investors by surprise by striking a V-shaped recovery. Despite the recent choppiness of the stock market, the S&P 500 is still up by 71% since bottoming out in March. The tech-heavy Nasdaq Composite has done even better with the index rising more than 90%.
Considering rallies of these magnitudes, it is normal to have bumps in the road along the way. It doesn’t make sense if the market is only heading in one way without having some minor corrections here and there, right? The question is, could we be looking at something more sinister than a mere correction? Well, if you are looking for a major crash like the ones we saw in March 2020, it is not clear if there is a major catalyst which can cause that in the near term. Why? Because usually a recession is caused by a sudden slowdown in spending. And that does not seem to be the case today.
Meanwhile, market corrections, which can take longer, are actually quite common. And consider the new stimulus money that keeps pumping up the tech space. Big tech companies are expected to thrive under this low-interest rates environment. That is why a big market pullback this week is a great opportunity for investors to buy on dips and go long on some of the top tech stocks in the stock market today.
Top Tech Stocks To Watch Right Now
- DocuSign Inc. (NASDAQ: DOCU)
- CrowdStrike Holdings Inc. (NASDAQ: CRWD)
- Teladoc Health Inc. (NYSE: TDOC)
- Fiverr International Ltd. (NYSE: FVRR)
DocuSign Inc. (DOCU)
First up, DocuSign is one of the biggest beneficiaries from the pandemic. This is because the company allows organizations to manage electronic agreements remotely through its eSignature service. DocuSign does so via its proprietary cloud platform that operates on various devices. DOCU stock has exploded since most offices had to transition towards working from home. Revenue growth has accelerated in its last three fiscal quarters, culminating in a 54% year-over-year pop in its latest report. Since the March selloffs, the company’s shares have at least doubled in value.
Also, DocuSign is not resting on its laurels just yet. In a recent blog post from the company, DocuSign announced a new partnership with the California Association of REALTORS (CAR). As a result, CAR’s members will now have access to all necessary real estate documents in an all-in-one cloud. The “DocuSign Rooms for Real Estate” streamlines real estate transactions for customers and agents alike.
With its recent pull-back, it provides a nice setup for investors to buy DOCU stock on dips. After all, contracts still need to be signed in the new normal, and nobody comes close to dominating the e-signatures market. If you believe in-person contract and document signing is a thing of the past, then you might want to take advantage of its recent dip.
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CrowdStrike Holdings (CRWD)
Coming up next, we have CrowdStrike Holdings as the next top stock to buy. The company mainly provides cloud-based endpoint and workload protection via its Falcon platform. Essentially, CrowdStrike’s platform leverages artificial intelligence (AI) to protect customers against cyberattacks. More than ever, its services are seeing increased demand. As a result, investors eyeing the future of security are turning to CRWD stock for growth.
Since its public debut, CRWD stock has climbed more than 200%. With its rich valuation, it does come with volatility. So when a market is experiencing a pullback like this week, it is not surprising that some CRWD stock investors will head for the exit. But with the company’s reputation as a cybersecurity titan in the industry, it certainly provides an attractive entry point for prospective investors.
The company’s management expects its cloud cybersecurity market to grow to $38.7 billion by 2023. Investors could be looking at long-term growth as the company deepens its pockets for more plays moving forward. Whether it is new acquisitions or bolstering existing services, Crowdstrike seems to be firing on all cylinders. Now, with CRWD stock dipping along with the broader market, would you consider adding it to your portfolio?
Teladoc Health (TDOC)
When talking about the advancement of technology in the health care sector, Teladoc is a name that often comes to mind. This comes as no surprise seeing that the company’s plethora of telehealth services remain a vital service during the pandemic. This makes Teladoc Health one of the biggest winners during the coronavirus pandemic. Of course, there are also other companies that compete in the telehealth market, but no doubt Teladoc is the leader.
Sure, with the global roll-out of COVID-19 vaccines, it’s normal for investors to be concerned with the low demand in the future. If you have been paying attention to the news of vaccine development, you would know that vaccines help to prevent infection. But that is not the same as saying that it can stop transmissions. That said before the world vaccinates enough people, telehealth services could be still in high demand. In fact, the company projects revenue in 2021 of close to $2 billion. That’s nearly double the company’s revenue last year.
Consulting firm McKinsey & Company projects that the U.S. virtual care market could approach $250 billion annually after the pandemic is over. With that kind of projection, you could say that Teladoc has a lot of untapped potential indeed. If the stock market corrects further, would you be picking up TDOC stock on the cheap?
Lastly, Fiverr is another growth stock that skyrocketed more than 700% in 2020. Despite its massive rally, this is still a relatively small company worth $9.46 billion. As you might already know, Fiverr is an online marketplace where sellers can sell services to buyers. The way people work is changing. Some individuals are increasingly turning to freelance as a primary source of income.
According to a study from Mastercard (NYSE: MA), gig economy payment volume could increase from nearly $300 billion in 2020 to $455 billion in 2023. Although Fiverr can only address a fraction of the gig economy market, with the rate the company is growing at the moment, there’s a high chance that the company could continue to see upward momentum in 2021 and beyond.
By paying attention to the user experience of freelancers and buyers, Fiverr has certainly attracted a fair amount of attention. With its growing customer base, would FVRR stock be the long-term winner in this space?