Tech stocks are off to a slow start this week. U.S. stocks, in general, were mixed today as market interest rates around the world climbed amid improving recovery hopes and a near-term end to the global pandemic. This latest slump does not mean that the tech sector is crashing. Rather it may be that tech stocks are lagging behind other sectors that are exposed to the traditional economy. These sectors usually benefit from more fiscal stimulus and U.S. lawmakers will debate on Joe Biden’s $1.9 trillion stimulus this week.
With the U.S. reaching herd immunity possibly by April, this raises the prospects of a post-pandemic boom as businesses may open by then. Due to the effectiveness of the vaccine, U.S. cases have already dropped by over 70% in the last 6 weeks.
How will top tech stocks fare in a post-pandemic world? Given how we have adopted tech so much into our lives in the last 1 year, our dependency on them would be here to stay. Today, we have already gotten used to shopping on Amazon (NASDAQ: AMZN) and have all our entertainment needs on Netflix (NASDAQ: NFLX). The conveniences that these tech companies provide will be the norm moving forward. With that in mind, here is a list of top tech stocks to watch in the stock market today.Best Tech Stocks To Buy [Or Sell] Now
- Marvell Technology Group Ltd (NASDAQ: MRVL)
- Square Inc. (NYSE: SQ)
- ZoomInfo Technologies Inc. (NASDAQ: ZI)
- Shopify Inc. (NYSE: SHOP)
Marvell is a leader in data infrastructure and semiconductor technology. Its tech services are trusted by the leading technology companies for over 25 years. The company’s semiconductor solutions are able to meet customers’ current needs and future ambitions. Specifically, Marvell believes that its leading-edge solutions are essential for the infrastructure technology of the future. MRVL stock has more than doubled in the last year and currently trades at $48.84 as of Tuesday’s close.
In the company’s latest quarter report in December, Marvell posted revenue of $750 million, a 13% increase year-over-year. It continues to deliver strong revenue growth, driven by its networking business, which itself grew by 35% year-over-year. Strong 5G and Cloud product ramps also continue to fuel its success in these strategic growth markets. With increasing demand, the company’s financial outlook has investors much to look forward to.
For its upcoming fourth-quarter financials in March, the company expects revenue of $785 million. Last week, the company announced that its hard disk drive controller and preamplifier are shipping in Toshiba’s 18TB Cloud-Scale HDD family of products. With so many interesting developments surrounding the company, will you buy MRVL stock?
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Square is a tech company with a cohesive commerce ecosystem that helps sellers start, run, and grow their business. In detail, its sophisticated software with affordable hardware will enable sellers to turn mobile and computing devices into payment and point-of-sale solutions. The company’s shares are traded at $256.59 as of Tuesday at 4 pm. ET. SQ share has been up by over 10% in the last month and the company will announce its fourth-quarter financials today.
How has the company been doing financially? In its third-quarter financials, the company achieved a gross profit of $794 million, which is up by 59% year-over-year. Its Seller ecosystem generated a gross profit of $409 million, up by 12% compared to a year earlier.
Square also reported that its Cash App delivered impressive growth, with a gross profit of $385 million, up by 212% in the same period. It also saw increased engagement as customers adopted multiple products in the quarter. Will this be enough for you to consider buying SQ stock?ZoomInfo Technologies Inc.
ZoomInfo is a subscription-based software company. It is a leading go-to-market intelligence platform for sales and marketing teams. In addition to that, its cloud-based platform provides highly accurate and comprehensive information for organizations and professionals. It also enables sellers and marketers to shorten sales cycles and increase their target. ZI stock closed Tuesday’s trading session up 4.11% after announcing its fourth-quarter results yesterday.
In it, the company posted revenue of $139.7 million for the quarter, a 53% increase year-over-year. Its net income per share was $0.14 and the company also reported an operating income of $29.6 million, which is a 54% increase. Furthermore, ZoomInfo is well-positioned for growth as it has a total addressable market of over $30 billion.
Businesses use ZoomInfo to transform the way they go-to-market, driving efficiencies and supercharging their growth. By continuing to deliver value to their customers, the company has a record number of new customers for the quarter as well. All things considered, will you buy ZI stock?
[Read More] Best Stocks To Buy Now? 4 5G Stocks To WatchShopify Inc.
Shopify is a multinational tech company with a focus on e-commerce. It is based in Ontario, Canada, and empowers over 1 million businesses worldwide. Generally, the company provides an all-in-one commerce platform to start, run, and grow a business. From 2016 to 2019, businesses on Shopify contributed to a whopping $319 billion in economic activity worldwide. Shopify shares tanked today along with the broader market and are down by 5.96% at the close of Tuesday. Could this be an opportunity for investors to buy on the dip?
“Our fourth-quarter results capped off an outstanding 2020, thanks to the success of our merchants in a year that truly tested their mettle and triggered more entrepreneurs around the world to start their journey toward economic independence,” said Amy Shapero, Shopify’s CFO.
“Shopify was prepared to ship the features that our merchants needed during the pandemic because we had invested for several years in a future that arrived early with the acceleration of online commerce. We’re amplifying our efforts in 2021, as we focus on executing on a portfolio of initiatives that will fuel further growth for our merchants and for Shopify.” With that in mind, will you consider adding SHOP stock to your portfolio?