Should You Include These Tech Stocks On Your Watchlist?
Tech stocks have been the superstars of the stock market for the past few months. But on its early June highs, the tech-centric Nasdaq 100 index has fallen by 5%. That slide is one of the largest plunges since the coronavirus market sell-off in March. That said, was that a time for investors to ditch tech stocks? Or was it time to look for tech stocks to buy on the dip?
If you had chosen the latter, congratulations. You are now in a better position than many investors who are looking for the best tech stocks to watch. Despite a temporary dip in the Nasdaq, it quickly rebounded and is 5.2% higher for the month as of 26th June. Amid the troubles with the reopening of the physical economy, tech stocks could continue to outperform. That’s mainly because many tech companies do not need the physical economy to fully reopen to be firing on all cylinders. As long as consumers and private enterprises could go about their business online, it could shift the traditional brick and mortar businesses to a more digitized state. We could see improvement in economic activity and the employment rate, enabled by technology. That could then translate to higher share prices in tech stocks.
Should We Turn To Tech Stocks For Bigger Gains?
There are so many ways technology could empower our lives when we are staying at home. Looking to buy essential goods but can’t be bothered to move around? Retail companies have services online. Wanting to connect with people but afraid to catch the virus in the process? Tons of social media applications are waiting for you to connect with people creatively. Many of us want to be productive with our time. Yet, we do not fully utilize these technologies to their true potential. But we can see a shift in people’s habits. They are increasingly more tech savvy, and investors are quickly realising that. For this reason, investors are looking for the best tech stocks to buy right now.
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Top Tech Stocks To Watch In July 2020: Snap Inc.
First, up the list, Snap Inc (SNAP Stock Report) is back on investors’ radar after some analysts claim it could become the WeChat of the US. Since it went public in 2017, the company has mostly disappointed investors with its user growth. Look, we get it, we know Snapchat is never going to be the next Facebook (FB Stock Report). But the amount of revenue it makes per user has a lot of potential upsides.
The company released a pack of new features at its developer conference this month. Many of those have the potential to increase revenue per user both directly and indirectly. One of the key highlights is the introduction of mini apps. Mini apps extend the functionality of Snapchat, allowing developers to build new applications on top of the messaging app.
The growing e-commerce initiative would provide Snap with a new opportunity in taking part in transactions. This could provide additional data to feed into its advertising algorithm. Having information on users’ spending behaviour is extremely valuable in the increasingly digitized economy. That said, investors saw how mini apps could transform Snap. The demand for SNAP stock can be seen in its almost 200% jump in stock prices since March. This makes Snap one of the best tech stocks to watch right now.
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Top Tech Stocks To Watch In July 2020: Tencent Holdings
The Chinese internet and gaming giant, Tencent (TCEHY Stock Report) grabbed headlines this week after becoming the most valuable Asian company, overtaking Alibaba’s (BABA Stock Report) spot. Tencent is one of few companies coming out Covid-19 stronger than before. It saw a surge in gaming activity after global lockdown measures came in effect. In Hong Kong, we have seen the Tencent stock briefly hit HK$500 this week, for the first time in the stock’s history.
Despite some pull back of Tencent stock these two days, the video game giant could see an extension of its rally after the release of its latest title, Brawl Stars. This game raked in US$17.5 million with 4.8 million downloads in its first week in China, according to data from app tracking firm Sensor Tower.
“Brawl Stars generated more revenue during its first seven days in China than the last Supercell hit to be released there, Clash Royale, which grossed US$9.4 million in its launch week,” Sensor Tower said in its report.
Brawl Stars has a lot of potential that could enable it to become a sensational hit. Not to mention a string of ownership stakes in major gaming developers such as Riot Games and Activision Blizzard, just to name a few. With gaming being a highly lucrative business for the foreseeable future, is Tencent the best stock to buy right now?
