Top technology stocks to watch in 2021

After the initial dip in almost all share prices in February/March, technology stocks went on to become the biggest winners of 2020. Long-established public tech companies including Amazon, Zoom and Alphabet have all reached all-time highs. We’re going to take a look at which tech stocks are the ones to watch in 2021.

Zoom Video Communications (ZM)

Zoom Video rose to the challenge that the coronavirus pandemic presented to businesses across the globe. Zoom was already popular with businesses that have offices in many locations, but the increase in remote work propelled their popularity further.

Zoom had its IPO in April 2019 and has since grown by over 500%. The technology company was one stock that benefitted hugely from the pandemic. Where share prices fell in March 2020, Zoom rallied and reached a yearly and an all-time high in October.

The fact that more companies are becoming fully remote means that products like Zoom are going to be essential in the future. Just this year, Coinbase and Twitter announced that they will allow employees to work remotely on a permanent basis. This is why it’s predicted that Zoom share prices won’t be slowing down, but will accelerate even further in 2021.

Alphabet (GOOGL)

Alphabet is the parent company of Google, YouTube and other subsidiaries in its portfolio. The Alphabet conglomerate formed in 2015, as it made sense for the restructure now that the company wasn’t solely supported by Google’s revenue.

Alphabet is still one of the most resilient tech stocks being traded. Google, like Amazon, also now offers cloud hosting services, which makes sense due to the sheer computing power the company has. This diversification is extremely smart. That’s not all though. YouTube is actually the most visited website in the world, adding to the expansive outreach and influence of the enormous company.

Alphabet stock saw a steep drop back in February/March of this year when there were the first warning signs of the pandemic. But, they’ve managed to put that behind them and in recent weeks have seen all-time highs when it comes to the share price. Unless there are more EU and other government sanctions against Google in 2021, it isn’t likely that the price will slow down.

Amazon (AMZN)

Amazon has grown exponentially since starting as an online book retailer. They now offer ebooks, audiobooks and even cloud hosting services via their Amazon Web Services (AWS) operations. In fact, Amazon is one of the largest cloud partners for corporate businesses now. The company is truly tech-first and that’s why they are one of the strongest stocks out there.

With the pandemic having a positive effect on eCommerce, it’s expected to see year-on-year growth when Amazon’s Q4 revenues are reported in Q1 2021. In September, Amazon saw its share price hit an all-time high, and it’s very possible that a new peak is reached in 2021. 

Shopify (SHOP)

One of Amazon’s eCommerce competitors is Shopify. Shopify was founded back in 2006 and went live on the stock exchange in May 2015. Since then, they’ve been growing annually. Their aim is to help local, independent businesses get off the ground when it comes to their online selling operations.

Shopify has managed to give power to small businesses by creating a robust tech platform to sell products online via their own shops. This makes people less reliant on selling on Amazon who takes a sizeable percentage of every sale. As more businesses have had to shut their doors or move online, Shopify saw an explosion of new customers. With online becoming the new shopping high-street, Shopify looks like a good stock to keep a close eye on in 2021.

Flutter Entertainment (FLTR)

Flutter Entertainment isn’t a typical technology stock. However, the history of the company is deeply tech-focused. Flutter is now made up of many brands, all of which have websites and apps for users to play games.

They are one to watch in 2021 due to the exponential growth of the US gaming market. Starting from New Jersey, a number of US states are approving legislation to support this industry.

The editorial unit