Trending Tech Stocks; What to Watch in 2021
2020 was a ground breaking year for the Technology Industry, and tech stocks saw the benefit too, the Nasdaq 100 Index alone saw a rise of 40% overall, the pandemic caused many small players to see big wins, with business going online there were many changes that had to be adopted, mostly resulting in taking meetings, documents signings and more online. This meant tech stocks went flying, and big players including those of FAANG saw huge returns.
While the vaccine is being rolled out at an immense pace, coronavirus is still having a huge impact on everyday life, and it is a common expectation that it will continue to for the foreseeable period. While the short term future doesn't look so bright for many unfortunate industries, tech has remained almost untouched by the chaos, and it would be wise to assume that tech will continue to flourish at in the upcoming year. Although as we will (hopefully) be returning to some form of normality this year, it's likely that more traditional tech trading opportunities and trends will return, rather than the huge growth seen as a result of stay-at-home trends.
Below we have listed 5 tech stocks to watch out for in 2021, based on their upside potentials and resilience throughout the past year.
Gilat is a leading global provider of satellite-based broadband communications, they design and manufacture industry leading ground segment equipment and provide comprehensive communication solutions. Currently Gilat is trading at an all time high, following an announcement that its Electronically Steered Antenna (ESA) has been successfully tested over Inmarsat's Global Xpress (GX) network, leading to a skyrocket increases over the past month. The ESA success was done over Inmarsat’s Global Xpress network; “Having integrated Gilat’s ESA with Inmarsat’s G-MODMAN further emphasizes Gilat’s ESA leadership and readiness for commercial deployment." said Gilat's Vice President of Antenna Products. But further than its most recent achievements, the company received a multi-million-dollar contract for cellular backhaul projects in Mexico, which is critical for allowing for connectivity across Mexico. Gilat's impressive and powerful alliances are creating shockwaves in the industry, allowing for huge growth potentials and further innovative capabilities. the most recent financial reports revealed revenues of 37.27 million dollars, as well as having $51.57 million in cash on hand by the end of the quarter. These latest strategic moves suggest to many that Gilat is a stock to watch in 2021.
Uber saw amazing returns of around 75% in 2020 and was trading at an all-time high earlier in January, despite the effects of the pandemic on its main business (private transport), which has hindered earning potentials, although the other side of the business UberEats, like many other food delivery services has been thriving, but cannot offer the same returns as business-as-usual does. In the fourth quarter of 2020, Uber’s total revenue rose 37% to 4.07 billion dollars on a yearly basis, although its net loss widened to $1.1 billion from a loss of $887 million in the previous year. However this might seem like a dim picture, it is likely Uber will be one to watch once major economies begin to open up again following the vaccine rollout towards the end of this year.
Clearfield manufactures and distributes passive connectivity products, which are a vital part of delivering broadband services to the general population. Because of our reliance on digital communication as of late, the services provided by Clearfield are of upmost importance, and as such their stock has seen steady growth over the last year with gains of over 120%. November financials displayed that the company earned revenues of $27.3 million, also reporting a 63% increase in cash on hand in the same period. The Company also recently announced that Midco Communications was utilizing its offerings, as a result of how Clearfield was able to accommodate the company's unique situation - offering service to areas of rural communities. Clearfield's adaptive and effective approach to challenging condition proves its resiliency, one of the reasons that many are choosing to invest in the company this year.
Moving over to a tech giant that has been a household name for decades, the owner of the world-leading PC operating system, Microsoft has been within just a few percentages reach of its all time trading high (September last year). From its October financials it appears Microsoft has been doing exceptionally well, with revenue reaching 37 million dollars, the company has certainly been driving further to success during the past year. Microsoft has now integrated a large majority of its enterprise offerings to the cloud, the strong demand for which, Microsoft say strongly attributed to the earnings and growth. Further, the company recently entered a long-term strategic relationship with General Motors as well as self-driving car, and GM subsidiary company, Cruise. The powerful strategic group aims to work towards the commercialisation of a line of autonomous vehicles, which is a highly discussed topic among the largest tech players at the moment. These strong strategic moves by Microsoft suggest their tech dominancy will not be slowing any time soon, and much as they surfed the uncertainty of the pandemic, they will likely remain stable amid the slowing of stay at home trends.
Visa is the world's largest electronic payments company, with its stock price moving steadily upward over the past decade, posting annualised returns upwards of than 28%. Through the COVID-19 pandemic during 2020, it has risen around 9%, while 2020's outcomes put an end to the debate surrounding Dow component Visa's qualifications as a "big tech" play, where the pandemic triggering huge forward progress in the digital payments industry. Although it is notable that the stock outcome is very much dependent on total payment volumes, which of course have declined as a result of increasing unemployment rates and the collapse of travel (among many other sectors) revenue. there are mixed opinions on Visa's stock viability although its impressive history of earnings growth and future potentials suggest a bight future.
Disclosure: The author held no positions in the aforementioned securities at the time of publication, the views and opinions expressed herein are the views and opinions of the author. Independent research should always be carried out before investing, Proteams Information Technologies, no the author hold no liability for reader's investment decisions and subsequent results.
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