IQ Study

Whether we like it or not, technology stocks played a key role in the overall stock market performance in 2020 due to the explosion of technology services and products caused by the coronavirus tailwind. In addition, the pandemic has led to a surge in demand for digital services. The emergence of digital offices, basic communication, and business processing brought with it new challenges that required immediate solutions. In this context, there are many options of tech stocks to buy both for a long-term possession and for short-term trading. 

However, some investors are increasingly concerned that President Joe Biden and the Democrat-controlled Congress could be bad news for big tech companies. Democrats have historically advocated greater regulation of companies to protect consumers, putting big tech companies in the crosshairs of antitrust lawsuits and data abuse measures.

Despite regulatory concerns, Bank of America’s team of analysts see many great opportunities for technology investments in 2021. Here are the top tech stocks to consider at the start of the Biden era.

1. Alphabet (GOOGL)

The harsher regulatory environment of the new administration might be especially hard on the Tech Giants. However, Google’s state-of-the-art search technology, the Android mobile operating system and the YouTube video streaming platform are a powerful combination. Bank of America has a “buy” rating and a price target of $2,150 for GOOGL shares.

Buy Google

2. Uber Technologies (UBER)

Uber is a leader in the ride-hailing as well as the food delivery market. According to the Post, Uber Technologies’ core business is likely to recover significantly by 2021, but its food delivery business, Uber Eats, could be successful if the economy fully recovers. In December, Uber completed a $2.65 billion deal, acquiring a delivery giant Postmates, which will significantly boost its profits in 2021. In December, Uber also acquired a 26% stake in independent car company Aurora Innovation. Bank of America has a “buy” rating and $66 price target for the UBER stock.

Buy Uber

3. Amazon (AMZN)

The healthcare crisis has only accelerated the economy’s inevitable shift to a cloud-based business environment. Amazon flourished as consumers became active in e-commerce, and the increase in sales easily offset the additional costs associated with the pandemic. The earnings report scheduled to be released on February 2, 2021 could boost the stock price if the key indicators are better than expected.

 Amazon faces regulatory risks, but the Post Office is optimistic about the long-term penetration potential of the company’s online and cloud retail businesses. Bank of America has a “buy” rating on AMZN and a $4,000 per share price target.

Buy Amazon

4. Apple (AAPL)

The more than $2 trillion company is expected to announce its first quarter results on Wednesday. Along with tech giants like Microsoft (MSFT) and Facebook (FB), it will likely be on investors’ radar this week. Overall, it is hard to deny the stock’s success over the last year, so it might be a good idea to watch this asset closely.

Buy Apple

5. Netflix (NFLX)

According to MarketSmith analysis, Netflix stock is approaching the buy zone after breaking a long consolidation pattern. Many experienced investors are waiting for the 575.47 level to enter a long position.

Netflix stock has risen since the last earnings report, despite a decline in actual earnings per share. Its relative strength line has also risen sharply. It measures the stock’s performance against the S&P 500. Netflix is expected to add 6 million new subscribers worldwide this quarter and its leadership position gives the asset an opportunity to grow despite the competition.

Buy Netflix

Tech stocks remain one of the main drivers of the market and it looks like 2021 might bring even more opportunities for the Internet sector. Let us know which IT stocks you think are the most promising in the comments below! 

1 Comment

Write A Comment