Are These Top Consumer Tech Stocks On Your November 2021 Watchlist?
Even after hotter-than-expected inflation figures and soaring bond yields, the stock market today appears to be on the rebound. Among the notable sectors to consider in the current uptrend in stocks would be consumer tech stocks. This is evident as the tech-heavy Nasdaq composite appears to be leading the market in terms of gains today. In essence, consumer tech is the intersection between the highly competitive tech industry and the booming consumer market now. Notably, even with supply chain pressures and pricing concerns, consumer markets continue to hold strong.
Because of all this, consumer tech firms such as Affirm (NASDAQ: AFRM) and JD.com (NASDAQ: JD) remain on the rise. On one hand, Affirm posted solid figures in its latest quarterly earnings report after yesterday’s closing bell. In detail, the company raked in a total quarterly revenue of $269.4 million, beating consensus estimates of $248.2 million. Affirm also saw its gross merchandise volume skyrocket by 84% year-over-year. However, the real highlight from its earnings call would be the expansion of its ongoing partnership with Amazon (NASDAQ: AMZN). Through the expansion, Affirm will become a permanent “Payment Option” in Amazon Pay’s digital wallet in the U.S. The move will apply to all eligible U.S. transactions.
Meanwhile, there is no shortage of exciting news from the e-commerce industry as well. Namely, Chinese consumers are having a field day on digital shopping platforms as the nation celebrates Singles Day (11.11). So much so that local e-commerce giant JD has already surpassed its annual record, bringing in $48.7 billion in sales and counting. This would go to show the overwhelming relevance of consumer tech in the world today. On that note, could one of these consumer tech stocks be worth watching in the stock market now?
Best Consumer Tech Stocks To Watch Right Now
- SoFi Technologies Inc. (NASDAQ: SOFI)
- Advanced Micro Devices Inc. (NASDAQ: AMD)
- FuboTV Inc. (NYSE: FUBO)
SoFi Technologies Inc.
First up on this list of consumer tech stocks, we have SoFi Technologies. In brief, the company helps people reach financial independence to realize their ambitions. It constantly innovates and builds ways to give its users a suite of financial products. This would include student loan refinancing, mortgages, personal loans, and credit cards. SOFI stock currently trades at $23.94 as of 1:59 p.m. ET and is up by over 15% on today’s opening bell.
Investors are likely responding to its strong third-quarter financials today. Notably, it posted a record GAAP and adjusted revenue. On top of that, SoFi reported a 5th consecutive quarter of positive adjusted EBITDA. It also enjoyed a total member growth of 96% year-over-year to 2.9 million, with an addition of 377,000 new members this quarter, the second-highest quarterly increase in company history. Total products were up by 108% to 4.3 million, with SoFi Money, SoFi Invest, and SoFi credit card driving 79% of new member growth.
The company says that continued new product enhancements, together with more effective execution of its marketing and branding had driven another quarter of robust growth in both members and total products. In fact, SoFi has solidified itself as a one-stop shop for digital financial products that meet all of its members’ financial needs throughout a lifetime, creating a compounding effect on member referrals. Given the impressive quarter, should investors add SOFI stock to their portfolios right now?
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Advanced Micro Devices Inc.
Advanced Micro Devices (AMD) is a multinational tech company that develops and manufactures high-performance computing and graphics technologies. Also, its products are used by hundreds of millions in the gaming, immersive platforms, and data center industries. Its users include leading Fortune 500 businesses and cutting-edge scientific research facilities around the world. AMD stock currently trades at $145.81 as of 1:59 p.m. ET.
On Wednesday, the company announced that IBM Cloud (NYSE: IBM) has chosen 3rd Gen AMD EPYC processors to expand its bare metal service offerings designed to power customers’ demanding workloads and solutions. The new servers, featuring 128 cores, up to 4TB of memory, and 10NVMe drives per server, give users full access to high-end, dual-socket performance. The collaboration with AMD has helped IBM deliver its highest core counts and bandwidth ever available for IBM Cloud customers.
In late October, the company also reported its third-quarter financials. Diving in, revenue for the quarter was $4.31 billion, increasing by 54% year-over-year. Net income for the quarter was $923 million or and earnings per share of $0.75. This was driven by its 3rd Gen EPYC processor shipments ramping up significantly in the quarter as its data center sales more than doubled year-over-year. AMD also ended the quarter with $3.6 billion in cash and cash equivalents. All things considered, is AMD stock a top consumer tech stock to watch right now?
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FuboTV Inc.
Last but not least, we will be taking a look at FuboTV. For the most part, it is a leading name in the live sports streaming industry today. The company’s sports-first approach to the streaming market would put it in a good position to appeal to sports fans amidst cord-cutting trends today. Sure, with companies like Disney (NYSE: DIS) seeing a deceleration in their streaming platform growth, conventional video streaming firms would be under fire.
However, Fubo is also looking to introduce a layer of interactivity to its offerings with live sports betting later this quarter. Could this be enough to set it apart from its streaming peers? As it stands, FUBO stock is trading at $25.02 a share as of 1:59 p.m. ET. Despite FUBO stock mostly trading sideways this year, Fubo continues to go from strength to strength on the operational front.
Earlier this week, the company posted solid figures in its latest quarterly earnings call. For the quarter, Fubo saw massive year-over-year gains of 156% and 147% in total revenue and advertising revenue respectively. Additionally, the company also saw its subscriber base more than double over the same period. In fact, Fubo notes that it hit the one million subscriber mark this week as well. Because of all this, the company raised its revenue and subscriber guidance for the full year 2021. With all that said, could FUBO stock be worth buying amidst the current sell-offs?
