Tech Stocks to Watch: Top Information Technology Sector Investments for 2021
The year 2021 has been a successful one for the information technology sector. As the world continues to embrace digitalization accelerated by the pandemic, the demand for technology-related products and services is on the rise. This trend has made tech stocks an attractive investment opportunity for both seasoned and first-time investors.
Here are some of the tech stocks to watch in 2021:
1. Apple Inc. (AAPL)
Apple is a multinational tech company known for its innovative products and excellent customer experience. The company’s revenue in 2020 increased by 6.7% to $274.5 billion, making it one of the most profitable companies globally. Apple’s success can be attributed to its diversified product offerings, including iPhones, iPads, Macs, and wearables.
Despite the current chip shortage challenges, Apple is expected to continue posting impressive results in 2021, thanks to its upcoming product launches, including AirTag, iPad Pro, and a refreshed Apple TV.
2. Microsoft Corporation (MSFT)
Microsoft is a multinational company specializing in software development, cloud computing, and computer hardware. The company’s revenue for the fiscal year 2020 was $143.015 billion, an increase of 13.6% from the previous year.
The demand for Microsoft’s products and services is likely to grow in 2021, thanks to the surge in remote work policies that have led to an increased demand for cloud services and computer hardware. Microsoft’s planned acquisition of Nuance Communications, a speech recognition company, demonstrates the company’s commitment to expanding its offerings.
3. Amazon.com, Inc. (AMZN)
Amazon is a multinational tech giant that dominates the e-commerce industry. The company’s revenue in 2020 was $386 billion, a 37.6% increase from the previous year, thanks to the surge in online shopping during the pandemic.
Amazon’s growth is expected to continue in 2021, thanks to the company’s expansion into new markets, including healthcare and groceries. The company’s investments in logistics and fulfillment capabilities and its continued focus on customer satisfaction is likely to drive growth in the long term.
4. Alphabet Inc. (GOOG)
Alphabet is a multinational tech company known for its search engine, Google. The company’s revenue in 2020 was $182.5 billion, an increase of 12% from the previous year. Google’s advertising business, which accounts for the majority of Alphabet’s revenue, is expected to continue to grow in 2021, thanks to increased online traffic.
Alphabet’s diversification into other sectors such as healthcare (Verily) and self-driving cars (Waymo) demonstrates the company’s commitment to expanding its offerings beyond its core search engine business.
Conclusion
Investing in tech stocks in 2021 can be a wise decision, thanks to the sector’s sustained growth and demand for its products and services. However, it’s important to conduct proper due diligence before investing in any stock. As with any investment, it’s essential to understand the business’s fundamentals, including its financial health, leadership, and competitive landscape. By doing so, investors can make informed decisions and take advantage of the potential opportunities in the tech sector.
