Are These The Best Tech Stocks To Buy Next Week
Tech stocks have spent the past few months really differentiating themselves from the market pack. The rapid adoption of communications technology, smartphones, and cloud computing is just the latest in a long line of technological advances that have swept through history. The coronavirus pandemic has accelerated the growth of tech for the coming decade. That is, technology bears a far greater influence on societal functioning than it ever had. For this reason, top tech stocks are once again leaving everything in the dust.
This week is huge for big tech stock investors. As you may or may not have followed the Big Tech CEO hearing, the most powerful tech figures were hit with tough questions and documents that raised concerns on how they achieved their dominance. The tech titans included CEOs of Amazon (AMZN Stock Report), Apple (AAPL Stock Report), Facebook (FB Stock Report), and Google (GOOGL Stock Report). No matter what the outcomes from the hearings, investors were paying more attention to the quarterly results released on Thursday.
What’s more important is that a day after the Congress grilling, big tech stocks add $250 billion into the market. All four companies posted stronger than expected June quarter results, driving these tech stocks respectively higher. The Nasdaq Composite rose 1.34% on Thursday with tech stocks mostly soaring in lockstep with their bigger counterparts. With all that in mind, let’s take a closer look at two top tech stocks in the market.
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Top Tech Stocks To Buy Or Sell Now: Microsoft Corporation
Shares of Microsoft (MSFT Stock Report) recently dipped despite the tech giant’s fourth-quarter earnings beating Wall Street’s estimates. The company’s revenue rose 13% to $143 billion in fiscal 2020, which ended on June 30. So, why did MSFT stock drop in response to the strong print? That’s simply due to some selling-the-news and profit-taking after a massive 50% rally over the past few months. Does that mean investors should buy on dips? Why not, if you ask me. What’s there not to be excited about MSFT stock? The fundamentals remain rock solid. The growth drivers remain resilient. And relative to the company’s promising growth prospects, analysts also believed that it is reasonably priced.
Connecting all the dots, there are just so many reasons to believe that the tech giant would be able to deliver strong growth in the near-term. The strong tailwinds resulting from the pandemic is benefiting the cloud, Windows, and gaming businesses. Of course, the pandemic may result in lower enterprise spending. But the growth of Azure, the rebounding demand of PCs, and their newly launched Xbox and Surface devices could offset the lower enterprise spending easily.
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Top Tech Stocks To Buy Or Sell Now: Tencent Holdings
Tencent (TCEHY Stock Report) is one of the largest tech companies in China and the world’s largest video game publisher. Its portfolio of games and major stakes in global blockbusters are making it one of the best tech stocks to buy. Even if you do not know Tencent, you would have heard of its super-app WeChat. And in case you haven’t paid attention to its recent developments, Tencent is in the midst of acquiring Sogou (SOGO Stock Report), China’s second-largest online search provider. Should the deal proceed, the acquisition could strengthen Tencent’s already massive ecosystem.
If you are thinking of buying tech stocks that could grow massively, Tencent is many investors’ favorite choice. The tech giant’s online advertising business, gaming, fintech, and cloud segments are showing double-digit percentages growth. Almost all of their services are naturally resistant to the pandemic. This makes it one of the best defensive investments you can find in the market. Initially, investors were skeptical about whether the company can sustain the growth witnessed during the first quarter. Well, as China recovers from the pandemic, coupled with the strategic acquisitions made by Tencent, the company is likely to deliver double-digit percentages growth in the coming quarters.