Big Tech Stocks Are Soaring, Are They On Your List?
Despite a record number of coronavirus cases, the stock market has largely held high thanks to the surging prices of large-cap tech stocks. Does that mean bad news from the coronavirus might be good news for top tech stocks? It certainly seems like it to me. Here’s why. The rapid adoption of various technologies such as edge cloud computing, communications technology, and e-commerce has led investors to look for the best tech stocks to buy. One thing’s for sure. It is that technology plays a more dominant role in the new societal settings than it ever had.
One way to build a portfolio capable of weathering the Covid-19 storm and achieving fantastic returns is to focus on the strong tech trends and identify the companies that are leading and benefiting from the current outbreak. Perhaps we can start looking at companies that we can’t live without. That’s because the technology offered by these companies has become the ‘essentials’ since the onset of the pandemic. The interesting thing is, you might be more tech-dependent than you actually realized. If you don’t believe what I just said, just imagine life without the internet.
Essentially, all types of tech stocks have the potential to rise in the stock market today. That is why keeping ourselves informed with a list of best tech stocks to watch can help a lot in investing. Some tech stocks have the tendency to move on an epic scale even though they are large-cap. Just look at Tesla (TSLA Stock Report) or Netflix (NFLX Stock Report), you would understand what I’m saying. That said, let’s take a closer look at two high growth tech stocks that could be your best bet in the long run.
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Top Tech Stock To Buy [Or Sell] In 2020: IBM
First, up the list, IBM (IBM Stock Report) is worth the attention of investors as it appears to be lagging behind the broader tech space since the market’s March 23 lows. The IBM stock has climbed 30% against its sector’s 50% climb. That said, IBM has raised its dividend during the coronavirus pandemic, with a dividend yield of 5.5%. Of course, the past performance never guarantees future gains. And a fresh look at this tech giant could reveal that IBM might be a top tech stock under the radar.
Now, the company hopes to expand its reach in the next-generation of technologies. IBM made two bold decisions over the past year. First, it deepened its push into open source software giant Red Hat for $34 billion. The company also has a huge interest in the cloud computing sector. We can see the company’s ambition here with the appointment of cloud veteran Arvint Krishna as its new CEO earlier this year. Apart from being one of the top tech stocks to watch, it is also an excellent dividend stock compared to its industry peers.
Top Tech Stock To Buy [Or Sell] In 2020: Facebook
The largest social media company Facebook (FB Stock Report) now counts 2.6 billion members across its platform. The ad boycott movement two weeks ago appears not to have any impact on FB stock price. Instead, FB stock price has been climbing steadily for the past few weeks. It’s an unusual move because usually negative news like this would put pressure on the stock. Maybe investors are more hopeful that the boycott movement is short term and the advertising business will recover soon. For this reason, Facebook stands to profit handsomely.
Some analysts also reiterated a “Buy” rating on Facebook’s stock and gave a target price of $300. The target price of FB stock means there’s a 25% potential upside from its current price. Yes, the digital ad market slumped during the early stages of the pandemic. But on the flip side, many countries are now working to reopen their economies notwithstanding the number of Covid-19 cases. And because of that, advertisers are beginning to ramp up their spending on Facebook, hence lifting FB stock. There’s a great chance that digital ad marketing is likely to bounce back stronger from the current environment as people are spending more time online. Large platforms such as Facebook are well poised to capitalize on these trends in the longer term.