This week, the S&P 500 erased all its 2020 losses as investors continued bullishly buying up stocks on optimism that more states are easing lockdown restrictions and reopening their economies.
The index has now rallied 45% since its March lows. But it’s still not back to the all-time high’s it made back in February…
Between then and now, a lot has changed in the world…
As nearly 2 million cases of COVID-19 have been confirmed here in the U.S., 42.6 million Americans have had to file for unemployment benefits. The 13.3% unemployment rate we’re currently at is the highest since The Great Depression.
This has forced the Fed to print $3 trillion, most of which was spent handing out “loans” and buying junk bond ETFs to prop up companies that rely on people physically being there and spending money to stay in business. Cruises, airlines, and retail stores are just a few examples.
If not for the Fed’s interjection, these businesses would likely go bankrupt in just a few short quarters. And the job losses would become permanent…
But one sector has clearly excelled throughout this whole pandemic: technology.
That’s why I'm bringing you three of the best tech stocks that both consumers and businesses have been using more since the start of the pandemic. And more importantly, they’ll likely continue using them once we’re back to normal.
Not only have they fundamentally been some of the top performing stocks throughout the recent market correction… Technical indicators show current momentum should take each pick to new all-time highs…
Tech Stock to Buy No. 3: DocuSign Inc. (NASDAQ: DOCU)
Since its inception in 2003, DocuSign has been on a mission to speed up business and simplify life for companies and people around the world.
In case you’re unaware, this firm developed some of the first electronic signature technology that helps organizations connect and automate how they prepare, sign, act on, and manage agreements.
Simply put, this company saves other businesses precious time and money. All you need is an Internet connection and an email address…
Instead of mailing a paper document back and forth (which would take days or weeks), DocuSign subscribers can send it to their customers via email to sign electronically in a matter of minutes. And the DocuSign users don’t have to worry about storing the paperwork somewhere safe when they can save the electronic document to the encrypted DocuSign cloud.
Companies that have been reluctant to switch from the “old-fashioned” way were forced to use DocuSign during the lockdown to get business done.
And now investors are betting that the new companies who signed up over the past couple months won’t be switching back after realizing all the time and money they’re saving using DocuSign.
After dropping 23% from $90 to $69 per share during the depths of the pandemic, shares of DOCU started rebounding based on the above hypothesis.
Since then, the stock has reported year-over-year Q2 revenue increases of 39% and shares have rocketed 103% higher to $140, outperforming the S&P 500 by 58%.
Since DOCU recently broke thorough its 50-day moving average with no signs of slowing down in sight, I expect the stock to continue its positive momentum and breach $200 per share by the end of 2020. This represents an additional 43% return from current levels.
Tech Stock to Buy No. 2: Square Inc. (NYSE: SQ)
Since its inception in 2009, CEO Jack Dorsey and his team at Square have been on a mission to help all 7.8 billion people on Earth participate and thrive in the economy.
The company makes commerce easy with their in-store credit card readers. And it makes the economy more inclusive for everyone with its in-house payments and investing platform, the Cash App – introduced in 2015.
Cash App is the fastest growing digital wallet in the U.S. In just two years, from 2017 to 2019, monthly active users more than tripled from 7 million to 24 million.
Not only does the Cash App conveniently allow people to virtually send money to each other through their connected bank accounts for free, it also acts a commission free brokerage platform for trading full or fractional shares of stocks and Bitcoin.
If you can’t afford to buy one share of Amazon.com Inc. (NASDAQ: AMZN) for approximately $2,600 or one Bitcoin for $9,700, then you can use the Cash App to buy as little as $1 worth at a time – completely for free.
Cash App makes money by charging businesses to use their application and individual users transaction fees to access additional services. And in fiscal 2019, Cash App revenues jumped 157% year-over-year to $1.1 billion.
After falling 55% with the market during the recent coronavirus correction, SQ stock has significantly outperformed.
Its run from $38 in mid-March to $90 today represents a gain of 137%, bringing it higher than its pre-COVID-19 levels.
The fundamentals with Square are strong as analysts are expecting Cash App users to top 40 million by the end of the 2020.
Combine that with the recent technical momentum, and it’s reasonable to assign a $150 price target to the stock. That represents potential gains of 67%.
Could This New Tech Be a “5G Killer?”
Everywhere you go these days, you hear about the big promises of 5G…
CNN says 5G will be “the lifeblood of the new economy”…
And The Wall Street Journal declares its impact will be “felt around the world.”
But before you buy into the 5G hype, there’s something you should know…
This breakthrough new tech could be a “5G Killer”…
Making 5G obsolete before it starts…
And it could all begin with a shocking announcement expected on June 22nd.
Be sure to get the full story before then.
>>Click here NOW to learn more about this shocking market prediction.
Tech Stock to Buy No. 1: Shopify Inc. (NYSE: SHOP)
If you’re ordering something online and it’s not coming from Amazon, odds are it’s coming from Shopify (and you don’t even know it).
That’s because, even though you won’t see its name on the packaging, Shopify has 31% market share in the U.S. for websites using ecommerce technologies.
You see, Shopify fulfills online orders for over 1.2 million live websites around the globe. And it’s rapidly expanding in France, Germany, Spain, Italy, Brazil, and Japan.
One of the best ways to think of Shopify is as a cheaper, smaller version of Amazon. With a market cap of only $80 billion (compared to Amazon’s $1.3 trillion), Shopify clearly has a lot of room to grow.
Even if Shopify just grew to half the size of Amazon, that’d represent a 712.5% return.
With SHOP stock already rising 131% from its coronavirus bottom of $320 in mid-March to $740 today, I expect technical buying momentum will continue fueling this company for the remainder of the year. My price target for SHOP is $1,500 per share – representing a 103% gain from its current price.
