Tech stocks took off like a rocket since the start of the second quarter. And if we look at the Nasdaq Composite, the record rally takes it towards its fastest 1,000-point increase in 20 years. Top tech stocks are having their best rally after rebounding sharply from the market crash in March. The rapid adoption of communications technology, cloud computing, e-commerce, and home entertainment has led investors to look for the best tech stocks to buy. And if there is one thing that we can be more certain, it is that technology plays an increasingly more important role in societal functioning than it ever had.
The major earnings for big tech stocks had arrived and Wall Street cheered the results. Most big tech stocks traded higher during post-market trading but it is Apple (AAPL Stock Report) that captured the most impressive gains after announcing its 4-1 stock split. Since the mega tech stocks have already reported their earnings and are already on investors’ radar, should we look elsewhere for trending tech stocks to buy? When it comes to the technology industry, it can be just as volatile as other sectors like biotech stocks. For instance, look at Amazon (AMZN Stock Report) and Tesla (TSLA Stock Report), which gained more than 60% and 200% respectively year-to-date. Having said that, here are 3 tech stocks taking the tech sector by storm this year.
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Shares of Fastly (FSLY Stock Report) soared more than 15% during intraday trading yesterday. This comes as investors eagerly await its upcoming earnings report on Wednesday, August 5. Some investors are also rushing to buy FSLY stock with significant confidence that its Q2 results will be able to beat the estimates. The momentum exhibited by cloud computing stocks has taken many investors by surprise. Admittedly, analysts’ expectations are ambitious for Fastly. And we have many reasons to hold such beliefs. Since the onset of the pandemic, many businesses have moved their computing operations onto the cloud.
Fastly has been one of the biggest beneficiaries in helping companies to migrate their businesses and operations onto the cloud. Among its biggest clients, Shopify (SHOP Stock Report) has reported impressive growth in recent weeks. And investors hope that Shopify’s success will be reflected in Fastly’s results.
With expectations running sky-high as seen from its stock performances in recent weeks, will Fastly deliver the results that many investors have been anticipating?
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Qualcomm Inc. (QCOM Stock Report) is an interesting option for investors willing to look beyond the pandemic for a 5G pure play. Since the dip in March, QCOM stocks have nearly doubled in value. There are many reasons for optimism in QCOM stock. The most obvious reason for such a rally comes after settling the disputes with Huawei. The company also topped its earnings estimates for its third-quarter results.
This came as the company benefits from the 5G cellular upgrade cycle. And because of these reasons, it’s safe to assume that there will be a long growth runway ahead in a potentially massive market.
“As 5G continues to roll out, we are realizing the benefits of the investments we have made in building the most extensive licensing program in mobile and are turning the technical challenges of 5G into leadership opportunities and commercial wins,” Chief Executive Steve Mollenkopf said in the Qualcomm earnings news release.Best Tech Stocks To Buy Right Now [Or Avoid]: Okta
Another cloud-based business, Okta (OKTA Stock Report) is also poised to benefit from the secular shift to cloud computing. Securing software access has become critical for businesses and consumers, and that has created a valuable niche for Okta. What’s so great about this business is that it’s an independent company between software makers, businesses, and users. Growth from any one of these three groups would encourage more to join in. For example, as more software makers partner with Okta, corporate clients and end-users both increase.
Because of its unique competitive advantages, OKTA stock has rallied more than 90% year-to-date. On top of its core business, the company also recently announced an agreement with leading cybersecurity companies to propose integrated security solutions to protect remote working environments. The only concern holding back investors from investing in OKTA stock is its valuation.
Despite the strong performance, the company is still loss-making. Chances are profitability may come as revenue grows further and as the company’s services become more entrenched in the market. And if that happens, this could be the best tech stock to buy.