3 Tech Stocks to Snap Up Now

Other than witnessing a correction in the last two months, technology stocks have soared so far this year because of an increased dependence on tech products and services amid the pandemic. Social distancing measures forced workers and students to adapt to a work and study from home environment…

Further, US mega tech stocks have emerged as election winners. Technology stocks have driven the NASDAQ composite to near-all-time highs last week after surging nearly 8%. These stocks are being picked up by investors due to the promise of high growth. In addition, with a Democratic President-elect and a likely Republican controlled senate, the possibility of gridlock indicates that antitrust legislation is not likely in the near future.

As the coronavirus keeps surging and an effective solution to contain the spread is still months away, the hope of the US stock markets rests with technology stocks. Companies like Microsoft Corporation (MSFT), UBER Technologies, Inc. (UBER), and LAM Research Corporation (LRCX) have performed exceptionally well this year and have upgraded and expanded their offerings. These innovative stocks are likely to continue growing and could make for solid investments.

Microsoft Corporation (MSFT)

MSFT creates and markets software products, including the popular Windows operating system. The company’s Microsoft Azure is one of the leading cloud services platforms in the world. MSFT is also engaged in the gaming sector through its line of Xbox gaming consoles. MSFT’s stock has gained 38.5% so far this year.

MSFT is about to launch the Xbox Series X gaming consoles worldwide. The pre-launch reception of the product has largely been positive. The company has also released new updates for its Microsoft Teams offering which makes it easier to collaborate and work together remotely. The new features include live captioning, which allows users to better communicate using the platform.

The company’s revenue saw an increase of 12% year-over-year during the quarter that ended September 2020. MSFT’s operating income improved 25% during the same period. The company’s revenue from LinkedIn, its professional networking website, saw an increase of 16%.

MSFT is expected to see an increase in revenue of 8.9% during the quarter ending December 2020, and 10.6% during the quarter ending March, 2021. The company’s EPS is expected to rise 8.6% during the quarter ending December 2020 and at a rate of 14.5% per annum over the next five years.

How does MSFT stack up for the POWR Ratings?

B for Trade Grade

B for Buy & Hold Grade

B for Peer Grade

B for Industry Rank

B for Overall POWR Rating

The stock is also ranked #8 out of 96 stocks in the Software – Application industry.

UBER Technologies, Inc. (UBER)

UBER develops and markets mobile apps that provide ride-hailing services for commuters. The company’s apps can also be used for delivery services, especially for meals. The company has expanded around the globe over the last few years. UBER’s stock has gained 62% so far this year.

The company’s stock jumped 9% on Monday after news broke out that a new COVID-19 vaccine was on the way. California also passed Proposition 22, which would allow the company to continue classifying its drivers as contractors, rather than employees, which would go a long way in making the company’s services more cost-effective.

During the quarter that ended September 2020, the company’s delivery revenue saw…

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