Investing in the technology sector may require you to enter periods when some of your stock picks are struggling.
This was the case during the early days of the pandemic when the share price of several tech stocks took a significant hit.
Focusing on the long-term is usually the best method to take when you’re choosing stocks to buy in this sector.
Consider How COVID-19 Impacts Companies
Shutdowns do not affect all businesses negatively. With more people working from home, software as a service (SaaS) companies benefit.
Many are offering discounts to keep users who might otherwise cancel to reduce expenses while their incomes are shaky.
They are also going after new customers who need to move their sales online or enable telecommuting for the first time.
Some common SaaS companies that are publicly traded include:
Companies Booming Now
Tech companies are also benefiting from the current situation. Here are five tech stocks to consider investing in during the pandemic:
Alphabet – GOOGL
Alphabet is a tech company that has its hands in so many areas it can be challenging to keep up.
They’re always releasing some type of new product in one or more sectors of the tech industry.
Coming up with innovative ideas to please both current and prospective customers is an excellent way to create new streams of revenue.
They entered the gaming market with Google Stadia in an attempt to stake their claim in that billion-dollar industry.
GOOGL is also investing in AI and seems to be doing well with Waymo, which is its self-driving car unit.
Apple – AAPL
Apple is another tech company getting involved in the AI space. This latest generation is going to be the first group of individuals who has grown up with the popular iPhone device.
In 2025, it will be 18 years since Steve Jobs released this smartphone to the world.
Apple has plans to take part in just about every single bit of data individuals use in their daily lives, ranging from academic records and health statistics to making hotel reservations and booking a flight.
Adding AI into this mix as a personal assistant could offer AAPL even more market share.
Qualcomm – QCOM
This 5G stock was rattled severely when the pandemic hit. Its share price fell from $90 near the first of the year to under $60 by the end of March.
The stock price has bounced back strong since then as the company is poised to take advantage of the 5G rollout that’s coming in the next few years.
As one of the top 5g stocks to invest in 2020, it’s not surprising to find investors optimistic about the future.
5G technology is setting up to enable a brand-new class of technologies and devices to emerge in the IoT space.
According to the experts at Money Morning, “5G is the biggest tech trend set to take shape over the next 12 months.
And 5G speeds are igniting entire new sectors like driverless autos and robot surgery.”
Amazon – AMZN
It wouldn’t be a top tech list for stock investing during the pandemic if Amazon wasn’t mentioned.
AMZN has positioned itself positively in the robotics space by deploying thousands of Kiva robots at its distribution centers.
Plans for the future include utilizing these robots even more, which should help provide higher efficiency for operations.
The area of AI and voice recognition is also an interesting space where Amazon is participating.
As the technology for voice-recognition improves, Amazon should benefit.
Adobe – ADBE
Adobe is still a leader in its industry and has seen its share price blast higher into mid-2020.
It’s had close to a 25 percent annualized earnings-per-share growth rate during the last three years, which makes it the leader in the desktop software industry.
Analysts continue to give high marks for the stellar growth that the company higher periodically, it would not be surprising to see their stock price continue to has been able to achieve.
If they continue to impress the market and guide estimates surge.
Best Tech Stock Investments
Buying on dips or breakouts in any of these five tech stocks may help your portfolio blossom in 2020 and beyond.
The sector continues to spotlight innovations, such as AI, autonomous-driving and robotics, which should help fuel growth.
Top image source: Mediamodifier on Pixabay; modified in Canva.
Originally published 7/29/21; edited 3/15/21 to add infographic.
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