Most investors would agree if I said that tech stocks are amongst the most dynamic offerings on the stock market. As we faced a global pandemic last year, many problems arose. However, the tech industry, more often than not, had a solution to said problems at the ready. As a result, many top tech stocks to watch flourished throughout the year. Whether it was an emerging tech company or industry leaders pushing boundaries, tech investors reaped the benefits. In terms of numbers, the NASDAQ-100 Technology Sector has outperformed the broader S&P 500 index throughout 2020. If anything, all of this speaks to the resilience of the top tech stocks, even amidst a global crisis.
So, you could be wondering, which parts of this huge industry have been thriving? Well, the real question is which parts haven’t. On one hand, you have the growing software industry which has provided online solutions via software-as-a-service models. On the other hand, the cloud computing industry has provided a vital and convenient medium for companies to digitize their assets. Just these two areas have played key roles in accommodating growing digital acceleration trends. Accordingly, companies like Twilio (NYSE: TWLO) and ServiceNow (NYSE: NOW) have seen their share prices skyrocket in the past year.
With such hefty price tags, it would be normal to question if these are the best stocks to buy now. Consider this, the coronavirus pandemic continues to rage on despite ongoing vaccination programs. With estimates suggesting it could be months before things settle, tech companies could use that time to grow as well. Regardless, the technology industry will continue to create and innovate. With all that being said, could these top tech stocks be worth adding to your watchlist?
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When it comes to consumer technology, you can’t deny that Apple is a household name. The trillion-dollar tech goliath has its line of iPhones and iMacs to thank for its success today. Consequently, AAPL stock is looking at gains of over 120% since the stock market crashed in March. Even as the company revels in its stellar year, Apple does not seem to be slowing down just yet. We can see this as it has been making moves across the board.
Over the weekend, Bloomberg reported that Apple is testing foldable screen technology. Should it play its cards right, Apple would be joining a growing list of its competitors in the smartphone space. Additionally, auto investors would have also heard the news of the company looking to revitalize its electric car program. Earlier this month, it was reported that the company was looking to work with Hyundai (OTCMKTS: HYMTF). If that wasn’t enough, the company has also extended its Apple TV+ trial subscription till July. All in all, Apple not only provides high-quality tech, but it also knows how to make the most of the current trends with it. This aggressive innovative model could bode well for AAPL stock in the long run.
Adding to all that, the company is slated to release its first-quarter fiscal on January 27. Looking at its recent quarter fiscal, I can understand why investors would want to watch AAPL stock up till then. In it, the company hit new all-time highs in terms of revenue, earnings per share, and free cash flow. With the growing adoption of 5G wireless technology, the company could also see revenue growth from its flagship iPhone offerings. Seeing as Apple is firing on all cylinders, will you be adding AAPL stock to your watchlist?Cisco Systems Inc.
Following that, we have leading networking hardware company Cisco. For the uninitiated, it manufactures and sells hardware, software and provides relevant tech services. Despite seeing gains of only 3% since the year started, investors could have a reason to watch CSCO stock moving forward. And that has to do with its recent acquisition mentioned last week.
On January 14, the company announced the amended merger agreement which would see it acquiring Acacia Communications (NASDAQ: ACIA). Cisco will be forking out a massive $4.5 billion for Acacia. In detail, the company mentioned that it will be expanding its optical systems portfolio through this deal. The company states that it will particularly be bolstering its “Internet for the Future” strategy. Through this, Cisco will be able to meet growing network infrastructure demands from its clients. Given Acacia’s expertise in the field of optical networking, this acquisition synergizes well with Cisco’s current offerings. Would this make CSCO stock worth watching in the long run? It may be too soon to say.
In its recent quarter fiscal posted in November, the company reported total revenue of $11.93 billion. Adding to that, it ended the quarter with over $10.82 billion in cash on hand. CEO Chuck Robbins said, “Our focus is on winning with a differentiated innovative portfolio, long-term growth, and being a trusted technology partner offering choice and flexibility to our customers. We see many great opportunities ahead as every company in every industry is accelerating its digital-first strategy.” Cisco’s solid financial position does seem to be able to back up its ambitions for now. With all this in mind, will you be watching CSCO stock?Oracle Corporation
Computer software company Oracle is another top tech stock to watch right now. The company offers enterprise resource planning (ERP) applications in the form of its Fusion and NetSuite Cloud services. It boasts an impressive client list featuring First Solar (NASDAQ: FSLR), T-Mobile (NASDAQ: TMUS), and Equinix (NASDAQ: EQIX). Impressively, its wide range of clients shows the versatility and quality of service brought by Oracle regardless of the industry. This may leave investors wondering if ORCL stock is undervalued given its growth of over 50% since the March selloffs.
Well, in its second-quarter fiscal reported last month, the company saw impressive figures. It brought in total revenue of $9.8 billion and ended the quarter with $28 billion in cash on hand. Notably, it saw a 100% year-over-year increase in revenue from its cloud infrastructure and autonomous database offerings. Chairman and Chief Technology Officer Larry Ellison explained, “Demand for our Gen2 Cloud Infrastructure is exceeding our plan and we are opening new data centers as fast as we can. Oracle opened 13 additional regional data centers in 2020 to bring our total to 29 regional data centers worldwide, more than AWS (Amazon Web Services).” For one thing, the company is keeping up with the likes of Amazon (NASDAQ: AMZN) in the cloud computing space. This alone is no small feat.
In recent news, it was also announced that Oracle would be updating its cloud platform service. Mainly, it will be adding its low-code application Oracle APEX to the platform as well. It appears that Oracle is looking to make its services more accessible and accommodating for new developers. The same applies to small and medium businesses. Generally, as the company expands its addressable market, it would attract more business. Could this benefit ORCL stockholders in the long run? I’ll let you decide.