Is now the time for investors to double down on these top tech stocks?
Many tech stocks are surviving in the market despite the coronavirus takeover. It seems as if many top tech stocks actually benefit from bad news related to the virus. Technology is always advancing, and many things are transitioning to digital. From newspapers to shopping, a digital world seems to be the future for all of us. Many e-commerce websites have benefitted from the bad news related to the coronavirus. The same goes for other online digital service-based tech companies.
Because of this, many tech stocks have managed to survive. In fact, a lot of tech stocks are sitting higher than they were before the pandemic. Cloud service companies are another type of tech stock on the rise. For example, Dropbox was able to make a full recovery in its stock price. Since people are home much more than usual at the moment, it has accelerated the growth of many digital tech stocks.
There are some daunting issues for the two tech stocks on this list. The problem is that these tech stocks are related to travel. Traveling as you might imagine is at an all-time low. Many people are afraid of catching the virus, so they are staying home. This has people skeptical about the safety of ride-sharing services like Uber and Lyft. With that being said, let’s look at these two tech stocks to watch and see why they are rising.
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Top Tech Stocks To Buy [Or Sell] In 2020: Uber
The first of two tech stocks to discuss is Uber Technologies Inc. (UBER Stock Report). Uber is an app that offers ride-sharing, food delivery under Uber Eats, and micro-mobility. You may have heard of its micro-mobility scooters and bikes being offered in major cities. The California based company has more than 110 million users worldwide. As of early 2019, Uber has a 67% market share in the ride-sharing industry. In 2019 Uber brought in more than $14 billion in revenue. As of 2018 Uber has a 24% market share in food delivery.
Pre pandemic, UBER stock was at $40 a share on average. Then UBER stock price fell hard to $14.80 a share in March. Since then, UBER stock has been on the rise. Now UBER stock price has had a bumpy road on the way, but has been making its way back up. As of July 21st UBER stock is at $33.14 a share. From July 15th to July 21st UBER stock price is up more than 6%.
UBER stock saw a recent uptick because of news that was released on July 21st. Uber announced that it had been helping governments with contact tracing for months. Contact tracing is essentially keeping track of people who are in contact with other people. This is very useful for informing people if they have been near someone who has the coronavirus. If more positive news can come from Uber, then UBER stock could even recover at some point.
[Read More] Are These 2 Top Techs A Buy In 2020?
Top Tech Stocks To Buy [Or Sell] In 2020: Lyft
The second tech stock to discuss now is Lyft Inc. (LYFT Stock Report). Lyft is the second-largest ride-sharing company in the US after Uber. Lyft possesses a 28% market share of the ride-sharing industry. It offers ride-sharing, bicycle-sharing, and food delivery as well. In 2019 Lyft brought in more than $3.6 billion in revenue.
LYFT stock, as expected, fell when the market crashed. Before the pandemic began LYFT stock price was around $45 a share on average. Then, LYFT stock fell to around $16 a share at its low in March. But since then, LYFT stock price has been back on the rise. As of July 21st LYFT stock is at $30.58 a share on average. This is more than a 91% increase in LYFT stock price from its low. From July 15th to July 21st, LYFT stock is up 5.42% a share. This is due to new safety precautions regarding ride-sharing that Lyft released. The more safe people feel when ride-sharing, the more people will be willing to use the service.
So the race is still on for LYFT stock and UBER stock. It is unsure which of these ride-sharing giants is going to recover in the market first. But if you keep up with reports and news regarding these companies you will stay informed. That is why these are two potential tech stocks to buy. The recent market movement has put UBER stock and LYFT stock in the eyes of investors.