Looking For Top Tech Stocks To Buy Right Now?
The stock market today has reminded us that things have been anything but predictable this year. Who would have thought that tech stocks will have such a monumental rally during the pandemic? To be sure, the stock market is likely to experience more volatility as the U.S. still grapples with high unemployment brought by the coronavirus pandemic. Not to forget that the U.S. election is just weeks away. It’s normal for investors to adopt a more defensive attitude towards investing. But if you are looking for the best tech stocks to buy, perhaps you could pick those that can fend off the impact of the insidious virus.
Just to be clear, tech stocks aren’t done growing. The increasing presence of technology in all aspects of our life means that there’s still plenty of upsides. This holds true even for the biggest tech stocks on Wall Street. Tech juggernauts Amazon (AMZN Stock Report) and Microsoft (MSFT Stock Report) jumped by a whopping 77.2% and 37.5% respectively year to date. Certainly not an easy feat for their size.
Cloud computing and social media companies are also climbing in the market this year. This is occurring for the same reason that digitally-focused companies are performing well. It seems like there is no end in near sight for the economic issues that we are dealing with in the world. This is only giving room for tech stocks to continue to rise. So now let’s look at three top tech stocks that have managed to stay sturdy throughout the year.
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Best Tech Stocks To Buy [Or Avoid] In 2020: Square
First up the list, Square (SQ Stock Report) has been one of the best tech stocks to buy this year. The company’s ongoing interest in blockchain and cryptocurrency could potentially bring more value to its shareholders. Square has enabled its clients to buy bitcoin on its Cash App since 2018. The company has been seeing a huge demand in the third quarter in comparison with the quarter before. Last week, the company announced that it has bought $50 million dollars worth of bitcoin. That represents about 1% of the company’s total assets.
“Square believes that cryptocurrency is an instrument of economic empowerment and provides a way for the world to participate in a global monetary system, which aligns with the company’s purpose,” the company said in a release.
Most consumers are probably familiar with Square for the company’s seller ecosystem. For years, Square has been aggressively expanding its offerings with small businesses by providing payment processing devices and solutions. Over a span of seven years since 2012, gross payment volume (GPV) crossing Square’s network skyrocketed from $6.5 billion to $106.2 billion.
No doubt, the coronavirus crisis has accelerated contactless payments. And in the case of Square, its Cash App has fueled considerable growth. Cash App’s monthly active users rose from 7 million more than 2 years ago to over 30 million now. Given the strong growth from Cash App, it will not be surprising to see Cash App becoming the main profit driver for the fintech company in the years to come. On that note, is SQ stock the best tech stock to future-proof your portfolio?
Best Tech Stocks To Buy [Or Avoid] In 2020: Snap Inc.
Snap Inc (SNAP Stock Report) didn’t have a good start this year. And that’s fine considering the novel coronavirus had slowed down revenue growth. With the recent momentum of SNAP stock, investors are beginning to wonder if the rally could persist through the earnings date. Major social media platforms saw their ad revenue tumble in the wake of the pandemic. While Snap was one among them, the company has since made a strong recovery. This signals a more optimistic result in its third-quarter earnings report which is slated to go public on October 20.
Bank of America analyst Justin Post delivered an upbeat Snap assessment in September. He called new initiatives such as personalized public profiles and user-accessible advanced analytics “potential engagement drivers” which could increase revenue. The ongoing TikTok debacle may also be a driver of SNAP stock. That’s because banning TikTok would likely be a boost for Snap’s account growth.
With Instagram and TikTok appearing to be taking over everyone’s lives this year, Snap sure looks like it’s not up to the game. However, Piper Sandler’s latest “Taking Stock with Teens” survey proves otherwise. The research firm carried out a survey on 9,800 U.S. teens regarding their favorite brands. And Snapchat has maintained its position right at the top. Granted, we already know teens like Snapchat, but Piper’s findings show that it has continued to stay ahead of TikTok and Instagram. That suggests that Snap’s long-term growth prospects remain robust. That said, would you place your bets on SNAP stock now in the run-up to its fiscal report?
Best Tech Stocks To Buy [Or Avoid] In 2020: HUYA Inc.
Under the radar, HUYA Inc. (HUYA Stock Report) could be one of the best tech stocks to buy. The company is the largest online game streaming platform in China. HUYA’s plethora of rich and dynamic content combined with technological innovation makes it the ideal entertainment platform for the younger generation in China. People can stream video games on different platforms such as console, computer, and mobile. Additionally, it operates Nimo TV which is a game streaming platform in Southeast Asia and Latin America. HUYA also runs its own marketing campaigns as well. The company last reported its second-quarter 2020 results in August and net revenue came in 34.2% higher to $381.8 million.
“I’m glad to deliver a strong second quarter. Revenues for the period exceeded our expectations, further illustrating our growth potential… Since Tencent became our largest shareholder, our cooperation has deepened in many aspects. For example, Huya’s live streaming content is now available in an increasing number of Tencent’s games and products, tapping into an expanded pool of viewers.” – Rongjie Dong, CEO of HUYA Inc.
At a price to sales ratio of just under 4 times, Huya is trading at a bargain in comparison to its peers. That’s especially true considering its growing profitability. The company’s adjusted net income for the second quarter of $49.7 million was 106% higher year-on-year. Huya’s position in the Chinese market will certainly strengthen once its merger with rival DouYu (DOYU Stock Report) is completed in the first half of 2021. With a bigger share of the market going forward, is HUYA stock worthy of your attention?