Are These The Best Tech Stocks To Buy Right Now?
The need for remote-work and online learning has led investors looking for the best tech stocks to buy. Among them, there were plenty of cloud stocks that were actually trading on discounts after their recent dips. As the old saying goes, “buy when there’s blood in the streets”. And you know that cloud stock is still a hot commodity. This could be because one of the biggest technological changes during this trying time could be the massive acceleration of the shift in enterprise IT spending to cloud computing. For this reason, cloud stocks are poised to benefit in the long-run.
When looking for best cloud stocks, Amazon (AMZN Stock Report), with its Amazon Web Services (AWS) would usually be the first thing that comes to investors mind. After all, Amazon is the pioneer and is still a leader in the space. In addition, software stalwart Microsoft (MSFT Stock Report) remains a perennial favorite among investors. Microsoft Azure is a close contender as it reports faster growth than AWS recently. Also, there’s little chance that the cloud market will see their growth slowing down anytime soon. This is especially when the coronavirus pandemic is not showing any signs of slowing down. While AMZN stock & MSFT stock are not cheap tech stocks to buy, there are still many other cloud stocks in the market that offer great opportunities.
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High-Growth Cloud Stocks May Offer Significant Upside In Comparison With Large-Cap Tech Stocks
The tensions between the U.S. and China is also putting one 10-bagger stock under the spotlight. Fastly (FSLY Stock Report) is one of the fastest growing tech stocks this year. Many bulls were hoping Thursday’s report would put a stop to its sell-off, but that didn’t happen. We saw another painful day on Friday. This came after the company reported that 12% of its revenue came from TikTok. As we enter the week, FSLY stock will remain interesting to watch as TikTok happens to be caught in the crosshairs between the two largest economies. And if you like this space, there are also other high growth cloud stocks. And they are less susceptible to political risks and could offer more potential upside. With that being said, are these tech stocks on your watchlist?
Top Tech Stocks To Buy Or Sell: Cloudflare
First up the list, Cloudflare’s (NET Stock Report) earnings and revenue topped Wall Street’s estimates on Thursday. But NET stock fell upon announcement and extended their losses to Friday. That could be because investors cashed out upon announcement. Since the company’s inception in 2009, Cloudflare speeds up and provides security for web applications routed through its intelligent global network. It offers a wide range of software-as-a-service products. The web security and infrastructure services provider has managed to increase its revenue at a compound annual growth rate of 50% from 2016 through 2019.
Cloudflare is one of the U.S. companies that have been quietly expanding their presence in China. Apart from its strong footprints in China and notable partnerships with major companies like JD.com (JD Stock Report), the company also recently launched a new serverless computing service that allows customers to pay for cloud computing based on actual data usage for their applications instead of pre-purchased allotments. Cloudflare’s security strengths, coupled with its numerous capabilities and flexibility, present an attractive offering to enterprises looking for a SaaS provider in this space.
The company’s core business is very robust. Cloudflare could see solid growth in the coming years. What’s key is for the company to continue leveraging its position as a leader in web domain protections. Together with continuous innovation in new growth areas, Cloudflare stock could be one of your best tech stocks to buy and hold for the decade to come.
Top Tech Stocks To Buy Or Sell: Twilio
Like other top cloud stocks in the market, Twilio (TWLO Stock Report) is also getting a boost from the pandemic, as many of its customers update their operations for the new digital age. After a 152% surge in TWLO stock year-to-date, the expectations were high for TWLO. The great news is, Twilio’s second-quarter 2020 report card didn’t disappoint. The company saw its revenue increased by 46% to $401 million during the quarter. Active clients also increased 24% from a year ago and topped 200,000. In addition, the top 10 highest-spending customers accounted for only 15% of sales. This makes for a well-diversified company that won’t stumble even if one of its clients decided to leave.
Much of the world are still under movement restrictions. And organizations scrambling to ensure minimal disruptions in their operations, the importance of digital communications are more pronounced than ever. The reasons why many investors love TWLO stock is because Twilio’s software can help a company build numerous types of communication capabilities into their existing operations, or build entirely new applications from the ground up.
This is a burgeoning industry, and virtual communication needs will continue to evolve. But the question is, would now be a good time to buy TWLO stock? If you are looking for a quick flip, maybe not. But if you are a long term investor, you should not worry about the rise in price to date.