Are These Work From Home Stocks Your Best Tech Stocks To Buy?
Tech stocks have been the biggest beneficiaries of the coronavirus pandemic. Especially tech companies that could keep corporations operating with limited disruptions. The popularity of remote work has yet to reach its full potential. Many have been asking one same question. That is, which tech stock will gain the largest market share in the work from the home arena?
No one knows how long the Covid-19 pandemic will last. It may last a year, or even longer. For investors, it is crucial to own businesses that are versatile and can adapt amid this uncertainty. Earlier this year, the broader markets have lost a significant portion of their value. But for virtual collaboration tools like Zoom Video Communications (ZM Stock Report) and Slack (WORK Stock Report), the scenario has been completely opposite. Now that remote work has become a massive trend, both companies are racing to capture the bigger slice of the cake.
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Slack Steps Up With New Acquisition
There has been an acquisition spree on Wall Street lately. Shortly after DocuSign (DOCU Stock Report) acquired Liveoak, Slack announced it was buying corporate directory startup Rimeto. The acquisition allows Slack to enhance their existing offerings. It calls the Rimeto’s platform a “powerful cultural tool” to help workers feel a greater connection to their jobs. The newly acquired platform allows employees to build detailed profiles of themselves, along with search functions that connect people in the enterprise. Since the news is out in the market, WORK stock climbed 8% higher on Wednesday.
Slack intends to integrate Rimeto’s features into its own platform. Such integration will provide a more comprehensive service to end users. Of course, when it comes to share price appreciation, WORK stock is no match for ZM stock. But maybe adding new features could act as a potential catalyst for WORK stock? Or could it potentially draw new users into its platform? As of April last year, Slack had 10 million daily users. Would the new acquisition make them the best work from home stock in the market? You be the judge.
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Should Investors Continue Riding On Zoom’s Momentum?
There’s no major news that is driving ZM stock higher. But one thing’s for sure, more confirmed cases mean that the global workforce has to wait longer before getting back to office. This scenario is enough to keep the momentum going for Zoom Video Communications. When the pandemic was in full swing, Zoom saw the number of participants using its software reach a peak of 300 million per day back in April. ZM stocks have been climbing up consistently and are up almost 300% year to date.
Now that we all know what Zoom is capable of achieving, the company introduced a hardware-as-a-service option on Tuesday. This essentially allows users to obtain Zoom-branded equipment to meet their conferencing needs. The company has taken the workplace collaboration by storm. Its ease of use has given it a competitive advantage against other video conferencing providers. What would be important to watch is the trend in the number of paying subscribers over time. Will using Zoom be a habit that sticks around even after the pandemic? Your guess is as good as mine.