May
6, 2021
6 min read
This story originally appeared on StockMarket
Top Tech Stocks To Watch In The Stock Market Today
Investing in tech stocks in the stock market has not been as smooth sailing as it was last year. The sector comprises businesses that sell goods and services in industries such as information technology, software, computers, and many more. It is hard to imagine not having some form of technological influence in businesses today. Due to this fact itself, it is not a surprise that the sector includes companies with the largest market capitalizations such as Microsoft Corporation (NASDAQ: MSFT) and Amazon.com (NASDAQ: AMZN).
Today, even fast-food giants McDonald’s (NYSE: MCD) is utilizing technology to improve customer experience and boost revenues. The company uses predictive analytics & machine learning to display food options onto outdoor digital drive-thru menus based on the weather, time of day, trending menu items, and current restaurant traffic. This allows McDonald’s to create a more personal experience for their customers. In fact, this is only made possible after the acquisition of digital customer experience technology company Dynamic Yield.
All in all, technological news continues to grab headlines this year. Do you agree that tech will continue to be an integral part of our lives? If so, could these top tech stocks be worth your attention in the stock market today?
Top Tech Stocks To Buy [Or Sell] Today
Apple Inc
To start off the list, we have the tech giant that needs no introduction, Apple. As most of us would know, the company designs and markets mobile devices, personal computers, and digital music players. The company announced its fiscal Q2 earnings last week. Apple posted a quarter record revenue of $89.6 billion, up 54% year-over-year. Out of which, 67% is from international revenues. Similar to many tech stocks, AAPL stock has seen significant gains over the past year. It has risen by an impressive 70% during the period.
On Wednesday, Apple awarded an additional $410 million from its Advanced Manufacturing Fund to II-VI (NASDAQ: IIVI), a leading manufacturer of optical technology. II-VI manufactures vertical-cavity surface-emitting lasers (VCSELs) that help power Face ID, Memoji, Animoji, and Portrait mode selfies. This extended collaboration will undoubtedly create additional capacity and accelerate the delivery of future components for the iPhone.
Furthermore, Apple also announced last week that it will accelerate its U.S. investments. It plans to make new contributions of more than $430 billion over the next five years. This includes tens of billions of dollars for next-generation silicon development and 5G innovations. As a result, this will create more job opportunities as well as investment in next-generation innovative businesses. With that in mind, is this the right time to buy AAPL stock?
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Snowflake Inc
Snowflake is a cloud data platform provider. The company’s platform enables customers to consolidate data into a single source. In essence, this would help provide crucial business insights and build data-driven applications. Snowflake is often credited with reviving the data warehouse industry by building and perfecting a cloud-based data platform.
In March, the company reported its fourth-quarter and full-year financials for fiscal 2021. Impressively, revenue for the quarter was $190.5 million, an increase of 117% year-over-year. Snowflake also said its net revenue retention rate was 168%, a respectable achievement. The company said that it now has 4,139 total customers, a 73% year-over-year growth.
Back In February, Snowflake and BlackRock (NYSE: BLK) announced a strategic partnership. In detail, BlackRock would launch Aladdin Data Cloud, a solution for investment managers to expand the utility of data, powered by Snowflake’s platform. The partnership aims to make data more accessible and actionable for the investment management community. Separately, with the company reporting earnings on May 26, will you consider adding SNOW stock to your watchlist?
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Arista Networks Inc
Arista Networks is a supplier of cloud networking solutions. In detail, it uses software innovations to address the needs of Internet companies, cloud service providers, and data centers for enterprise support. At the core of Arista’s platform is the Extensible Operating System (EOS™). It is a ground-breaking network operating system with single-image consistency across hardware platforms, and a modern open core architecture enabling in-service upgrades and application extensibility. Arista is another company that announced its Q1 results this week. The company posted revenue of $667.6 million, an increase of 27.6% from the first quarter of 2020. In addition, the company reported a healthy operating profit of $198.8 million for the quarter.
This goes to show that customers are responding to the company’s focus on cognitive cloud networking suites. It is also noteworthy that the company has performed well throughout the pandemic, and this recent earnings report is the sixth consecutive quarter that the company has beaten analysts’ expectations.
Furthermore, in early April, Arista announced CloudVision 2021. CloudVision is a multi-domain management plane that enables operations consistency across data centers, campus wired and wireless, and public cloud use cases. This uniform approach would simplify network operations for Arista’s customers and partners. With that in mind, would you consider investing in ANET stock?
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Twitter Inc
Last but not least, we have Twitter. Basically, it is a microblogging and social networking company. Its software service allows people to connect and communicate via messages known as ‘tweets’.
In late April, the company announced its first-quarter financial results. Revenue for the quarter was up by 28% year-over-year, coming in at $1.04 billion. Net income was $68 million, representing a net margin of 7%. This compares to a net loss of $8 million for the same period last year. Safe to say, if you had invested in TWTR stock a year ago, it would’ve been a sound investment. The stock has almost doubled in price over the past year.
With that being said, the company is not taking anything for granted and still strives to improve its software. Twitter’s acquisition spree continued on Tuesday, where it acquired a news tech company, Scroll. This is a subscription service that offers its users a better way to read through long-form content on the web by removing ads. The service will become a part of Twitter’s larger plans to invest in subscriptions. Given the prospect for growth of the company, would you consider adding TWTR stock to your portfolio?