Are These The Best Tech Stocks To Watch This Week? 4 In Focus.
As we kicked off 2021, tech stocks continued to blaze through the stock market. For the most part, this has not changed, based on how some of the top tech stocks are doing amidst the current earnings season. Last week, Microsoft (NASDAQ: MSFT) wowed investors as it reported record quarterly sales. This is evident as MSFT stock hit a new all-time high just two days after it was announced, nearing the $243 mark. Another major tech company that reported earnings last week was Apple (NASDAQ: AAPL). The biggest name in consumer tech reported a massive total revenue of $111.4 billion for its last quarter of 2020. Both of these companies saw solid quarters as 2020 came to an end due to pandemic-related trends. Investors are likely looking towards similar companies this week as well.
Arguably, pandemic-related demands may not stay forever. That’s considering that Joe Biden plans to vaccinate the entire population by the end of summer. Before that time, I could see the tech companies continue to dominate the market. Accordingly, investors may be looking for the best tech stocks for their portfolios as we start another week of star-studded earning calls. Well, here are four for your consideration.
Best Tech Stocks To Watch Now
- Amazon.com Inc. (NASDAQ: AMZN)
- Alibaba Group (NYSE: BABA)
- Alphabet Inc. (NASDAQ: GOOGL)
- Qualcomm Inc. (NASDAQ: QCOM)
Starting us off is leading e-commerce player Amazon. Whether it is digital retail, video streaming, or cloud computing, the company has a powerful presence indeed. For one thing, the coronavirus pandemic has provided a massive tailwind for its main business of e-commerce. In fact, AMZN stock is looking at gains of over 88% since the March lows. With Amazon slated to release its fourth-quarter fiscal tomorrow, investors would have their eyes on AMZN stock.
According to consensus predictions, the company is expected to post revenue of $120.4 billion. If this turns out to be the case, it will mark a 37% year-over-year jump. Morgan Stanley (NYSE: MS) analyst, Brian Nowak cited Amazon’s high-margin businesses as driving factors towards greater profitability in the long-run. These businesses include its e-commerce services, Amazon Prime subscriptions, and Amazon Web Services to name a few. With increasing Prime membership and growing cloud adoption, I can see why investors would be watching AMZN stock closely.
Despite its current momentum, Amazon does not appear to be slowing down anytime soon. Last Wednesday, the company announced plans to enter Poland’s $19 billion e-commerce market. As Amazon takes on its European counterpart Allegro for market share in the region, AMZN stock could be looking at exciting times ahead. Would you agree?
Similar to Amazon.com, Alibaba is another e-commerce giant worth watching this week. The multinational tech company boasts a robust portfolio with e-commerce, cloud solutions, and even movie production assets. Notably, BABA stock has been in focus for the last few weeks now. Understandably, this would be the case with news regarding its attempted Ant IPO and founder Jack Ma resurfacing. On top of all that, the company is set to release its earnings for the quarter ended December tomorrow.
In its recent quarter fiscal posted in November, the company saw a total revenue of $24 billion. Additionally, it also reported ending the quarter with over $46.6 billion in cash on hand. For one thing, Alibaba has exceeded consensus estimates by an average of 25% across its previous four quarters. Current projections by Morgan Stanley point towards a total revenue of $33.43 billion for the quarter. This would add up to a 33.8% year-over-year increase for the company.
Steady gross merchandise value growth would help to drive Alibaba’s core revenue. Well, tomorrow’s results will reveal if that is true. With all this in mind, will you be adding BABA stock to your watchlist?
Following that, we have tech juggernaut Alphabet. Safe to say, its Google subsidiary has become a household name across the globe. Its premier search engine, massive video streaming platform, and cloud computing prowess are key businesses to note. Naturally, these three arms of Google have grown tremendously amidst growing internet usage throughout the pandemic. As the company is set to release its fourth-quarter financial results tomorrow, investors would have GOOGL stock in their sights.
As it stands, Wall Street expects Alphabet to post earnings of $15.98 a share on revenue of $53.11 billion for the quarter. This marks a sizable bump compared to revenue of $46.08 billion a year ago in the same quarter. Another thing to note would be GOOGL stock’s gain of 4% over the last month. It has outpaced the S&P 500 which is currently down by 1%. Moreover, it has also outperformed the rest of the FAANG stocks over the past trading week.
A growing belief now is that Alphabet’s growth will be supported by ad trends recovering to pre-pandemic levels. In its recent third-quarter fiscal, the company saw over $42 billion in ad revenue from YouTube and Google Ads. All in all, do you think investors should be watching GOOGL stock?
Leading semiconductor company Qualcomm is another top tech stock in focus right now. For the uninitiated, it creates semiconductors, software, and services related to wireless technology. The company is also a frontrunner in 5G cellular technology which is a growing section of the consumer tech market. QCOM stock has more than doubled since the stock market crashed in March. As Qualcomm is looking to post its first-quarter fiscal on Wednesday, I would not be surprised if investors have their radars tuned in.
Estimates indicate that Qualcomm will see a profit of $2.10 per share for its first quarter of fiscal 2021. Impressively, this would equate to a 110% increase year-over-year. Furthermore, the company is also forecasted to post a total revenue of $80.3 billion, gaining by 60% over the same period. It seems that analysts are looking forward to a spectacular earnings call from Qualcomm. Time will tell if this is the case.
Earnings call aside, the company also had a busy January before this. On January 13, it entered a definitive agreement to acquire world-class CPU developer NUVIA, further bolstering its industry-leading tech portfolio. Just last week, Qualcomm also announced plans to extend its partnership with General Motors (NYSE: GM) on smart vehicle development. Could all this mean big gains for QCOM stock moving forward? You be the judge.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.