Tech stocks have had quite a phenomenal year. The stock market took a huge dive in March, but thankfully the drop didn’t last long. Shortly after, the monumental gains the stock market has made since then have investors looking for the top tech stocks to watch for the upcoming year. That’s understandable, as tech companies provide much-needed services during the COVID-19 pandemic. Now, the market seems to be experiencing some form of plateauing since November. Would this provide a nice set-up for investors to increase their positions in these stocks?
You may be wondering, why are tech stocks slowing down this week? After an extraordinary performance from the tech space, it’s normal for these tech stocks to take a breather. But I don’t blame you for asking. Perhaps this is your first year investing in the stock market. And you happened to hop on the train before it took off. You might think that the stock market can only head in one direction only. Even if you have been investing for a while, it is normal to be taken aback by corrections. But that shouldn’t dissuade us from looking at tech stocks with high growth potential.
When looking for companies to deliver spectacular returns, tech stocks seem to be a great place to hunt for growth. Sometimes, older companies can still innovate and regain their stature in the market. For instance, who would have thought Amazon.com (AMZN Stock Report) which started merely as an online bookstore would become the world’s largest e-commerce marketplace. Not to forget another once-struggling computer maker Apple (AAPL Stock Report) which went on to release the iPhone. The rest is history, they say, as Apple became America’s first $2 trillion public company. Now, tech may have fallen out of favor in the past week. But there are some that appear to be moving against gravity. That said, do you have these tech stocks on your list this week?
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Shares of BlackBerry (BB Stock Report) jumped nearly 20% on Tuesday’s intraday trading. This came after the security software services company announced a “multi-year, global agreement” with Amazon.com to develop BlackBerry’s Intelligent Vehicle Data Platform, IVY. BlackBerry has been transitioning itself into a provider of business security and information integration services, and it’s through this transformation that caught the attention of Amazon Web Services.
“Data and connectivity are opening new avenues for innovation in the automotive industry, and BlackBerry and AWS share a common vision to provide automakers and developers with better insights so that they can deliver new services to consumers … This software platform promises to bring an era of the invention to the in-vehicle experience and help create new applications, services, and opportunities without compromising safety, security, or customer privacy. We are pleased to expand our relationship with AWS to execute this vision and deliver BlackBerry IVY.” said BlackBerry Chief Executive John Chen
It may seem like it was just yesterday that the company was a smartphone maker losing its relevance in the market. But things have clearly changed for the better. The agreement between BlackBerry and AWS must have made investors happy. BlackBerry’s share price has more than doubled since the stock market crash in March. The question is, would you bet on BB stocks to continue the momentum?Top Tech Stocks To Watch Now: Hewlett Packard Enterprise
Hewlett Packard Enterprise (HPE Stock Report) is another tech stock that is bucking the trend in the stock market. This came after the company reported better than expected financial results for the fourth quarter, ended October 31, 2020. HPE reported revenue near to pre-pandemic levels of $7.2 billion, up 6% from the prior quarter and flat from the prior-year period. The company also raised guidance for the 2021 fiscal year.
“The global pandemic has forced businesses to rethink everything from remote work and collaboration to business continuity and data insight”, “Over the last several months, customers have increasingly turned to HPE for our unique capabilities from edge to cloud that help them empower their workforces, deploy resilient new IT solutions and extract insights from critical data, while consuming these solutions more flexibly as a service.”- Antonio Neri, president, and CEO of Hewlett Packard Enterprise
Apart from reporting strong fiscal results, the company also announced that it’s moving its corporate headquarters to Houston from San Jose, California. That’s an unconventional shift for a company with deep roots in the Bay Area. The company joins a list of other tech companies that are moving out of California. They include Palantir Technologies (PLTR Stock Report) and Dropbox (DBX Stock Report). If this helps companies to be more cost-effective, it would be positive for shareholders. With brighter prospects ahead, are HPE stock on your watchlist?Top Tech Stocks To Watch Now: Micron
Memory chip giant, Micron Technology’s (MU Stock Report) stock jumped more than 6% on Tuesday’s intraday trading before closing 4.67% higher. The surge in MU stock came after a couple of price upgrades by Wall Street analysts. They predict that the company has more upside to offer thanks to higher demand for 5G smartphones and data centers. To top it all off, the company reported strong quarterly results and raised its guidance for the first quarter of the fiscal year 2021.
“It’s not only about the data center. Look at mobile, 5G … During calendar year ’21, as the global economies get past the pandemic and as the economies grow, the need for more memory and storage will continue to broaden.”– CEO Sanjay Mehrotra
Robust demand from data center customers was instrumental in contributing to Micron’s outperformance. The company is benefiting from the rising demand for cloud services which have seen higher usage amid the pandemic. With many expecting digitalization trends to continue, Micron stands to gain from the secular trend. At just under 18 times forward earnings, the stock does not appear to be too pricey for a tech stock. With all these in mind, would you consider having MU stock in your portfolio?