Top stocks to watch today? 4 technological actions to take into account
May 3, 2021
6 min read
This story originally appeared on StockMarket
Do you have these tech stocks on your May watch list?
When it comes to the main stocks to watch in 2021, investors may want to consider technology stocks. Why? Well, most would say that this part of the stock market today is home to some of the top growth stocks. For new investors, growth stocks are owned by companies that are expected to grow at a faster rate than the market in general. More often than not, these companies devote most of their income to improving their offerings. This would accurately describe the tech companies that are innovating and constantly competing in their respective fields. Of course, tech stocks took a hiatus earlier this year. But, the technology continues to evolve, nonetheless. As a result, there would be no shortage of information today for technology investors.
Speaking of news, we’re in the middle of a rocky results season for big tech right now. Tech goliaths like Microsoft (NASDAQ: MSFT) and Apple (NASDAQ: AAPL) continue to report stellar numbers. For starters, Microsoft topped Wall Streets’ estimates with earnings per share of $ 1.95 on revenue of $ 41.71 billion. This was followed by 19% annualized revenue growth for the quarter, Microsoft’s biggest quarterly increase since 2018. Elsewhere, Apple also reported an explosive quarter, with company-wide sales increasing by 54% year over year thanks to soaring iPhone sales. Overall, tech stocks continue to grab the headlines this year. If all of that prompts you to add to your watchlist, here are four from today’s stock market.
Top tech stocks to watch right now
International Business Machines Corporation
IBM is a multinational technology company that operates in more than 170 countries. It produces and sells computer hardware and software, while also providing hosting and consulting services. In addition, it is a major research organization, holding the record for most US patents generated by a company for 28 consecutive years. The company has five segments in the technology sector. It includes cloud and cognitive software as well as global technology services. IBM shares are currently trading at $ 141.25 at 10:30 a.m. ET.
On Thursday, IBM announced the acquisition of Turbonomic, a Boston-based application resource management (ARM) and network performance management (NPM) software provider. The acquisition will provide businesses with comprehensive application observability and management to ensure performance and minimize costs by using AI to optimize resources.
By acquiring Turbonomic, IBM is the only company that will be able to provide customers with AI-based automation capabilities that range from AIOps (the use of AI to automate IT operations) to observability of applications and infrastructure. With this exciting news, will you consider watching the action from IBM?
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Zoom Video Communications Inc.
Zoom is a communications technology company headquartered in San Jose, California. The company is a provider of video communication platform and web conferencing services. It offers a cloud-native platform, which unifies cloud-based video conferencing, online meetings, group messaging, and a software-based conference room system. ZM stock is currently trading at $ 323.90 at 10:56 a.m. ET. Last week, the company was covered by analyst Daniel Bartus of Bank of America (NYSE: BAC). He took a deep dive into communications software companies and re-established coverage for several top stocks. Zoom, in particular, received a buy note and a target price of $ 480.
Bartus says Zoom is here to stay and has a lot of long term growth to come. For the industry, he sees a $ 60 billion market opportunity that is ripe for further cloud migration. Considering how the pandemic has provided the industry with a catalyst, Zoom could potentially grow even further after the pandemic.
Early last week, the company also announced the Zoom Apps Fund, a new $ 100 million venture capital fund created to drive the growth of the company’s Zoom Apps ecosystem. Portfolio companies will receive initial investments of between $ 250,000 and $ 2.5 million to create solutions that will become essential to how Zoom customers meet, communicate and collaborate. The Zoom apps announced at Zoomtopia 2020 are leading apps that will bring productivity and engaging experiences directly to the Zoom platform. Given all of this, are you going to add ZM action to your watchlist?
Amazon is a multinational technology company that focuses on e-commerce and cloud computing. The company has been one of the most influential economic forces in the world and is also one of the most valuable brands in the world. AMZN stock hit an all-time high today, surpassing $ 3,500 per share. This follows another impressive quarter for the company which was reported on Thursday.
First, the company reported first quarter net sales of $ 108.5 billion, a 44% year-over-year increase. Net income increased to $ 8.1 billion for the quarter or $ 15.79 per diluted share. The company also ended the quarter with free cash flow of $ 26.4 billion. Amazon also reported that over 200 million Prime members are paying worldwide. All things considered, will you be watching AMZN action?
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PayPal Holdings Inc.
Today, at the top of the list, the main fintech player, PayPal. For the uninitiated, the online payment company offers a plethora of financial services to consumers. These range from online money transfers to even cryptocurrency-related services. In terms of scale, if digital payments are available, PayPal is likely operating in this region. This year, PYPL stock would be in the spotlight thanks to the company’s growing cryptocurrency portfolio. Since March, PayPal has acquired a cryptocurrency security company and introduced major crypto-related integrations into its core offerings. These include being able to transact using digital currencies and manage them on its flagship Venmo app. Considering that PYPL stock is currently up over 100% over the past year, would this be a wise investment?
Well, PayPal doesn’t seem to be slowing down in the slightest. Just yesterday, news broke of its latest collaboration with leading cryptocurrency exchange, Coinbase (NASDAQ: COIN), was announced. Thanks to this partnership, millions of US PayPal users can now buy cryptocurrencies on Coinbase. While the duo would simplify the process of buying digital currencies, it would further encourage widespread consumer adoption. In turn, this could lead to comments as more and more people rely on their services. Safe to say, this seems like a strategic game for both companies. With PayPal leading the charge in this new frontier of finance, will you be watching PYPL stock?