Tech stocks have rebounded since the COVID-19 because the technology sector is one of the biggest drivers of long term growth in the global economy.
There are literally hundreds of tech stocks to invest in but we narrowed the list down to the best tech stocks to buy for 2020. All the companies on the list have strong competitive advantages, a loyal customer base, and plenty of room for long term global growth.
List of Tech Stocks with Huge Potential in 2021
- Zoom (NASDAQ: ZM)
- Tesla (NASDAQ: TSLA)
- DraftKings (NASDAQ: DKNG)
- Fiverr (NASDAQ: FIVR)
1. Zoom Video
Arguably the #1 biggest benefactor of the COVID-19 pandemic is Zoom Video (NASDAQ: ZM). Zoom allows friends, colleagues, and students to connect seamlessly using live video conferencing.
While lockdowns continue to ease around the globe, I suspect there will be 2nd wave of COVID-19 which could cause a short term rise in cases. Also, many health experts suggest that COVID-19 will become endemic, meaning that “we will learn to live with it” over the long run. Vaccines aren’t guaranteed to eliminate 100% of infections in the future.
Video conferencing is here to stay and many people find it easier to connect than travel long distances for face to face meetings.
Apple designs a wide variety of consumer electronic devices, including smartphones (iPhone), tablets (iPad), PCs (Mac), smartwatches (Apple Watch), and TV boxes (Apple TV), among others. The iPhone makes up the majority of Apple’s total revenue. In addition, Apple offers its customers a variety of services such as Apple Music, iCloud, Apple Care, Apple TV+, Apple Arcade, Apple Card, and Apple Pay, among others. Apple’s products run internally developed software and semiconductors, and the firm is well known for its integration of hardware, software and services. Apple’s products are distributed online as well as through company-owned stores and third-party retailers. The company generates about 40% of its revenue from the Americas, with the remainder earned internationally.
Amazon is among the world’s highest-grossing online retailers, with $281 billion in net sales and roughly $365 billion in estimated physical/digital gross merchandise volume (GMV) in 2019. Online product and digital media sales accounted for 50% of net revenue in 2019, followed by commissions, related fulfillment and shipping fees, and other third-party seller services (19%), Amazon Web Services’ cloud computing, storage, database, and other offerings (13%), Prime membership fees and other subscription-based services (7%), product sales at Whole Foods and other physical store retail formats (6%), and advertising services and cobranded credit cards (5%). International segments constituted 27% of Amazon’s non-AWS sales in 2019, led by Germany, the United Kingdom, and Japan
The parent company of Google and Youtube continues to churn out profits in the online tech space. SharNetflix’s primary business is a streaming video on demand service now available in almost every country worldwide except China. Netflix delivers original and third-party digital video content to PCs, Internet-connected TVs, and consumer electronic devices, including tablets, video game consoles, Apple TV, Roku, and Chromecast. In 2011, Netflix introduced DVD-only plans and separated the combined streaming and DVD plans, making it necessary for subscribers who want both to have separate plans.
Microsoft develops and licenses consumer and enterprise software. It is known for its Windows operating systems and Office productivity suite. The company is organized into three overarching segments: productivity and business processes (legacy Microsoft Office, cloud-based Office 365, Exchange, SharePoint, Skype, LinkedIn, Dynamics), intelligence cloud (infrastructure- and platform-as-a-service offerings Azure, Windows Server OS, SQL Server), and more personal computing (Windows Client, Xbox, Bing search, display advertising, and Surface laptops, tablets, and desktops). Through acquisitions, Microsoft owns Xamarin, LinkedIn, and GitHub. It reports revenue in product and service and other revenue on its income statement.
While there seems to always be negative publicity surrounding the company, it’s hard to ignore the consistShopify offers an e-commerce platform primarily to small and midsize businesses. The firm has two segments: subscription solutions (43% of fiscal 2018 revenue) and merchant solutions (57% of fiscal 2018 revenue). The subscription solutions segment allows Shopify merchants to conduct e-commerce on a variety of platforms, including the company’s website, physical stores, pop-up stores, kiosks, social networks (Facebook), and Amazon. Merchant solutions are add-on products for the platform that facilitate e-commerce and include Shopify Pay, Shopify Shipping, and Shopify Capital..
Disclosure: I own shares of Apple & Netflix.