Are These Top Tech Stocks Worth Investing In Before August 2021?
Tech stocks continue to shine amidst the current earnings season in the stock market today. After all, consumers and organizations alike are relying on the industry’s offerings more than ever across the board. Like it or not, tech is a major component of all our lives today. This would be the case from our homes and offices to even the systems keeping our core national infrastructures in place. As such, it would make sense that tech companies continue to thrive now. With that in mind, I could see investors eyeing some of the top tech stocks in the stock market as well.
Another possible factor to consider with tech stocks now is the current direction of the economy. Based on the latest economic data, the current recovery in the U.S. economy appears to be taking a breather. Namely, both the U.S. gross domestic product and weekly unemployment claim measures missed expectations this week. Because of this, growth names in the tech industry that flourished during the pandemic could be in focus again. For instance, we could look at the likes of Adobe (NASDAQ: ADBE). If anything, Adobe’s flagship creative software offerings have and continue to serve clients across numerous end markets today. The likes of which range from students and consumers to organizations. In fact, the company recently introduced new software integrations with Apple’s (NASDAQ: AAPL) latest generation processing chips.
Elsewhere, tech giant Amazon (NASDAQ: AMZN) posted total revenue of $113 billion in its recent quarter. This would mark its third consecutive quarter above the $100 billion revenue mark. Notably, the company is seeing tremendous growth in both its ad tech and cloud computing divisions. All this would serve to highlight the relevance and demand for tech in our world today. Check out these three making headlines now.
Best Tech Stocks To Buy [Or Sell] Today
- Snap Inc. (NYSE: SNAP)
- Zoom Video Communications Inc. (NASDAQ: ZM)
- PayPal Holdings Inc. (NASDAQ: PYPL)
Starting us off today is social media company Snap Inc. In brief, the company develops and maintains a series of tech products and services. The likes of which mainly consist of its Snapchat app, Spectacles augmented reality device and Bitmoji online-avatar generator app. Now, the need for Snap’s core services would be on the rise as parts of the world are still dealing with the pandemic today. Thanks to its unique camera-focused social media app, the company offers consumers a more visual means of staying connected. With SNAP stock currently looking at gains of over 230% in the past year, could it have more room to run moving forward?
To understand this better, we could take a look at the company’s recent quarter fiscal posted last week. In it, Snap beat expectations across the board. To highlight, the company reported earnings per share of $0.10 on revenue of $982 million for the quarter. This exceeded consensus estimates of a $0.01 loss per share and revenue of $846 million. In terms of year-over-year growth, Snap saw its total revenue surge by over 116%. Moreover, the company’s Snapchat app also reported a global daily active user count of 293 million.
While all this is great for Snap, the company does not seem to be slowing down anytime soon. Firstly, it is currently working on expanding its e-commerce operations. Through a collaboration with Verishop, the company is now offering Snapchat users a curated e-commerce experience. Secondly, the company is also bolstering Snapchat by adding new features to its built-in-map services. Now, Snapchat users will receive recommendations for places to eat and visit based on their current location and friend activity among others. With Snap seemingly firing on all cylinders now, could SNAP stock be a top buy for you?Source: TD Ameritrade TOS
Zoom Video Communications Inc.
Another top name in the tech space over the past year would be Zoom Video Communications Inc. or Zoom, for short. In brief, the company’s current fame among consumers and businesses alike would be thanks to the relevance of its video communications services. Through Zoom, countless users were able to connect with one another despite being homebound at the onslaught of the pandemic. All this would make ZM stock a top pick among investors given the current resurgence in coronavirus cases globally. With the company’s shares taking a breather this year, would it be a wise investment at its current price point?
For one thing, Keybanc (NYSE: KEY) analyst Steve Enders appears bullish on ZM stock now. Earlier this week, the analyst hit it with an Overweight rating and a price target of $428. This would indicate a potential upside of over 10% from its price at Thursday’s closing bell. According to Enders, a recent survey on enterprise adoption of video platforms indicates persisting uptrends well into 2022. This would see the general demand for Zoom’s services hold strong as the world shifts towards hybrid work environments in the long term. Furthermore, the analyst also highlights Zoom’s recent acquisition plan regarding call center software company Five9. Enders believes that the deal “should transform Zoom’s model and support a second leg to growth.”
Likewise, we can see that Zoom’s influence in the tech world continues to grow. Just yesterday, Amazon revealed that the latest iteration of its Fire TV Cube streaming device now supports Zoom video calls. No doubt, Zoom appears to be kicking into high gear at an opportune time. Could this make ZM stock worth investing in for you now?Source: TD Ameritrade TOS
PayPal Holdings Inc.
Following that, we will be taking a look at PayPal Holdings Inc. Overall, most consumers across the globe would be familiar with the company. This would be the case as its online payment services are in place across 200 global markets. Not to mention, the company now serves over 375 million consumers according to PayPal. All in all, PYPL stock could remain a viable play in the stock market today as digital payment adoption increases.
More importantly, PayPal continues to maintain its momentum on the financial front. This is evident from its strong earnings figures reported earlier this week. For starters, the company raked in total revenue of $6.24 billion for the quarter, marking a sizable 18% year-over-year increase. On top of that, PayPal also saw its total payment volume (TPV) surge by 40% over the same period. This adds up to a TPV of $311 billion from its 403 million active accounts. All things considered, the company appears confident regarding its current standing in the fintech industry. CEO Dan Schulman said, “Clearly PayPal has evolved into an essential service in the emerging digital economy.”
At the same time, PayPal does not seem to be resting on its laurels just yet. In the company’s earnings call, Schulman also notes that PayPal is working on a new “super app”. The likes of which would serve as the company’s latest all-in-one consumer services app. So far, PayPal has already mentioned a wide array of potential features such as budgeting tools, crypto support, and messaging functionality to name a few. Because of all this, would you consider adding PYPL stock to your portfolio?Source: TD Ameritrade TOS
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.