Top 3 Tech Stocks for 2021 — could this be your New Year Resolution? 👌
With New Year just around the corner and a lot of us enjoying their well-deserved holidays, it is a good time to look ahead and start planning for 2021! It is also the time when a lot of us start thinking of unrealistic New Year Resolutions… (greetings to all perfectionists out there🤗)
COVID-19 pandemic has been tough on a lot of us… 🥱🤧😪 But! It also opened up a wealth of opportunities! 😏😮 In today’s highly volatile and uncertain markets, investment enthusiasts can easily grow their wealth by pooling money into “disruptor” companies with promising future.
Sure, investing is a risky endeavour. Yet it can be highly rewarding, if done right. Just imagine for a moment, that about 1 year ago you had invested $4000 in a stock of your own choice. If you were patient enough, your investment as of the end of this year would be worth:
- $31703 in Tesla
- $21132 in Zoom
- $13830 in Bitcoin
That is quite a profit, right? 😉 So why don’t you also give “investing” a shot for your 2021 New Year Resolution? It doesn’t have to be super big either, just a small pot of money ($1000 at max) to see if it is something for you! To get you started, below is my sneak peek on top 3 tech stocks to watch 2021!
But before that…
At this point we can readily admit that COVID-19 has accelerated the growth of technology’s importance in our daily lives. With many people living in the state of a complete lockdown, technologies now fully shape our way of working, our daily social interactions and even our consumption choices.
Even with a remote chance of us fully recovering from pandemic in H1 2021, the footprint left by technology now will be long standing. COVID-19 pandemic showcased the importance of technologies’ continuous advancement in improving our own lives. As seen below, the state of digitalization by July 2020 was nowhere near comparable to Jan 2020.
#1 Amazon Inc. (AMZN: $3283.96) adapting best to the new cloud-based reality
The “sexiest” product offering of Amazon, as of now, is the AWS (Amazon Web Services): a one-stop online shop for 175 (!) cloud-based services, focused mainly on database management, machine learning, software development and data analytics. End goal in mind is deceptively powerful in today’s world: to fully enhance online collaboration across orgs of all sizes (so be it between colleagues of smaller scale start-ups or across departments within larger companies).
Let’s face it: a “work from home” reality is there to stay, even after most of the world will get vaccinated against a novel COVID-19 virus in (hopefully) 2021. Collaboration online is the new norm and AWS is certainly the “go-to” provider for associated services. The flexibility of AWS’s “pay as you go” approach (wherein companies pay dependent on their capacity needs, rather than allotted budget) offers for multiple ways to minimize costs, while maximizing added value from otherwise non-digitalized products.
#2 Broadcom Inc. (AVGO: $431.88) offering a wide range of IoT (Internet of Things) solutions in a forward-integrated fashion
An increasing reliance on IoT technologies (like your personal laptop, mobile phone or cable TV) prompts a high demand for devices ensuring smooth Internet connection with the outside world. It is thus no wonder that companies involved in IoT technologies flourish in today’s reality, wherein flawless Internet connectivity has become the reason for concern of both private households as well as businesses.
Broadcom, of all competitors, stands out in its unique business model. The company captures the entire product value chain by selling both the user-end technologies (such as broadband modems and enterprise software) as well as the supply-level products (such as fibre optics, microchips and Ethernet). Broadcom therefore uniquely positioned itself to serve a large customer base, whilst ensuring reasonable financial performance in difficult economic times. Following a recent acquisition of Symantec, company has further diversified its product offering, thereby improving its strategic positioning across different industries.
#3 Square Inc. (SQ: 213.74 USD): a POS app helping small businesses go online
Founded in the aftermath of 2008 financial crisis, Square Inc. identified a remarkably niche market: offering user-friendly online services for SMEs (small and medium-sized enterprises) across the United States. Square Inc. is an online point-of-sale application helping small businesses thrive in depressed economic conditions by offering functionalities to:
- Advertise and sell the products
- Make online payments
- Arrange for delivery of the products
About 1 year ago, Square Inc. also expanded its product offering to processing business loans, serving to finance short-term financing needs. Using the data available in the app, Square Inc. is quick to identify the small businesses with financial difficulties and offer them tailored loan solutions through banks willing to take the risk. Unfortunately, such small businesses often go unnoticed in screening done by traditional banks, as these banks simply don’t have the access to the same amount of alternative data available to apps such as Square Inc.
