Is technology stock expected to cool this fall? After a powerful career for the last 18 months, there are …
Is technology stock expected to cool this fall? After a powerful career over the past 18 months, there are some worrying signs of this last season of profits.
The “actions of FAANG”, above all, disappointed. Facebook Inc. (ticker: FB) was sold despite a strong earnings report, and shares of Amazon.com Inc. (AMZN) were hit after a huge lack of profits. Investors could not be blamed for reducing their exposures to the technology sector after this round of profits. That said, not all is bad news. Beyond the tech titans, many software companies still have a favorable outlook for the previous half of 2021.
Meanwhile, the tough profit season has also created several buying opportunities for tech companies. Here are five of the best tech stocks to buy around August:
– Unity Software Inc. (U)
– Spotify Technology (SPOT)
– Intel Corp. (INTC)
– Salesforce.com Inc. (CRM)
– Roper Technologies Inc. (ROP)
Unity Software (U)
Last week, Facebook CEO Mark Zuckerberg stated that his company is evolving beyond social media. Now, Facebook will be a “metaverse” company. This caused outrage. Zuckerberg’s vision of a metaverse is a ubiquitous virtual reality that encompasses all devices and locations. This would allow Facebook to supplant the Apple Inc. iPhone. (AAPL) to become the dominant platform in the lives of consumers.
It’s too early to guess if Facebook will finally succeed. Regardless, metaverse stocks will now be a hot commodity and Unity is the most obvious winner, earning a spot as one of the best tech stocks to buy this month. It offers a 3D graphics engine for video games, e-commerce, movie production, architecture and more. Unity-based video games work seamlessly in virtual reality and are already a leading partner with Facebook’s Oculus VR team. As Unity launches more applications for virtual reality, it will have the advantage of the first engine to power the Zuckerberg metaverse. Unity CEO John Riccitiello has been exposing the company’s metaverse plans in detail and now the market is about to catch up with history.
Shares of Spotify fell last week after a weaker-than-expected earnings report. The growth of the company’s users slowed and reduced its outlook for the rest of the year. The end of the tailwind pandemic has caused the results to be released for several tech content companies, including Netflix Inc. (NFLX), Pinterest Inc. (PINS) and now Spotify. However, this sale has created a buying opportunity.
Shares of Spotify have fallen from $ 387 to about $ 220 since their February high. Meanwhile, Spotify’s long-term control over the music streaming industry has only increased. In the meantime, it continues to invest in other projects, such as podcasting and its advertising network, which will bear fruit in the long run. Like Netflix in its early days, marketers are paying too much attention to the noise of Spotify’s quarterly results. This configures the possibility of buying a pronounced correction in the dissemination fund.
Intel shares have experienced a summer downturn and are now trading at their lowest point since December. This is despite the fact that the company offers a bold product map that highlights the company’s technology trajectory for at least 2025. It was a clear reminder that Intel spends approximately $ 14 billion annually on research and development and more. will allow AMD Inc. (AMD) and Nvidia Corp. (NVDA) continue to steal thunder.
In comparison, AMD and Nvidia spent $ 2.3 billion and $ 4.3 billion on R&D over the past 12 months, respectively. Intel has stumbled in recent years, to be fair. And the shortage of semiconductor chips hasn’t helped things either. Still, with less than 12 times the profits, Intel has a price that makes up for more than its mistakes. Meanwhile, the company’s other projects, such as the Mobileye autonomous driving unit, offer Intel the chance to surprise people. Intel’s value and new vision make it one of the best tech stocks to buy in August.
Salesforce stocks are poised to rise. Shares have been low since September 2020. This is due to the fact that Salesforce was in the process of acquiring communications firm Slack in the workplace largely. This put a lot of pressure on Salesforce shares, as arbitrage led to a short circuit in CRM shares prior to the merger. In addition, some analysts have expressed concern that Salesforce has overpaid for Slack.
Regardless, the merger just closed in July and Salesforce may be looking ahead again.
This is an opportune time for the company, as the global economy is heating up again rapidly. This, in turn, would mean that sales and marketing activity should also be accelerated. Salesforce should have a wind behind the main business, in addition to starting to integrate Slack into its broader workplace cloud. After almost a year without going anywhere, Salesforce shares are ready to participate in the broadest technology rally.
Roper Technologies (ROP)
Roper Technologies is a diversified conglomerate that has a wide variety of industrial and software businesses. It started as an industrial company, but management cunningly realized many years ago that it should be key to owning the technology that fuels industrial companies, and now it can rightly be called a stock of technology, broadly speaking. To this end, Roper has created a software business that spans power plant management, factory automation, insurance, 3D graphics, supply chain, healthcare computing and more.
Each business is run as an independent subsidiary, with Roper deciding where to invest more capital and optimizing things from its headquarters. Roper has been remarkably successful. Its shares have increased by 500% in the last ten years. Still, it has traded at a reasonable advance earnings 32 times despite composing those gains in a double-digit annualized clip over the past decade. Because Roper still looks like a suffocated industrial company, many technology investors have so far lost this growing software conglomerate.
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5 of the best tech stocks to buy for August originally appeared on usnews.com
Update 3/21/21: This story was previously published and has been updated with new information.