After a major selloff in the technology sector, tech stocks are beginning to rally…
Last month, Wall Street money managers shifted their attention from the high-flying technology sector to more cyclical shares. In fact, these financial gurus effectively cut their exposure to the tech industry to their lowest levels since 2009.
The move was primarily due to the fact that broader economic activity has recently increased. According to the ISM Manufacturing Purchasing Managers’ Index, March saw manufacturing activity hit a 37-year high. At the same time, prices for a range of products surged as well.
This meant that industries that largely struggled over the past twelve months had begun to see a pickup in previously suppressed demand. As a result, Wall Street rotated into cyclical sectors like energy as well as “reopening stocks,” which consisted of restaurants, among other businesses.
And with this, growth stocks, including those in the technology sector, saw downward pressure…
But even this has begun to fade. Now, the tech industry is seeing signs of a rebound. The S&P 500 Information Technology Index is up 14% since its tumble in March. Meanwhile, the Nasdaq-100 Technology Sector Index has risen by nearly 16% in the same period.
So, even with the market’s focus on other industries, technology still has plenty of growth ahead. And it just may be on the cusp of roaring back to record highs.
But even if the recovery isn’t immediate, the shift in focus from growth to value may merely be a near-term headwind rather than a long-term problem for technology shares.
That’s exactly why we’re bringing you our No. 1 Software-as-a-Service (SaaS) tech stock with plenty of long-term tailwinds ahead…
The Best SaaS Tech Stock To Buy Now
You’ve likely heard of Oracle (ORCL) before. It’s a massive American multinational computer technology company that focuses on providing cloud-based services through a SaaS business model. This means the firm’s customers pay a monthly fee to use its products, giving Oracle a consistent revenue stream while also drastically reducing the upfront costs for businesses.
And this continues to be a tailwind for the company, even with tech falling out of favor…
In March, ORCL reported its third-quarter results. The company said its earnings per share were $1.16 compared to the anticipated $1.11. The SaaS vendor’s revenue was $10.09 billion, beating the expected $10.07 billion.
Meanwhile, sales for ORCL’s NetSuite and Fusion services surged by 24% and 30%, respectively. Subscriptions now account for 72% of ORCL’s revenue as well.
As more people continue to work remotely, and businesses further transition to digital services, demand for ORCL’s products could continue to rise.
Whitney Tilson: Here’s My #1 TaaS Pick (Free)
While it's getting very little attention in the mainstream press…
Wall Street legend Whitney Tilson, says “an absolute stock market frenzy” is erupting in one small corner of the new technology space… “TaaS”
- An Ohio company working on this tech soared roughly 500% in two months.
- A California company considered the leader in this space is up as much as 360% since the start of this year.
- A New York company entering this space shot up 71% in just two days.
- A Phoenix company working on this breakthrough recently shot up 104% in a single day.
- And a Vancouver company shot up as much as a whopping 1,000% since the start of 2020.
Tilson says the returns in this space are only going to escalate from here, as it enters the next phase.
Tilson – a former hedge fund manager who's twice appeared on 60 Minutes to break big financial stories – says…
“The best thing you can do as an investor is position yourself in front of a massive, inevitable, and booming trend… and that's what we're looking at right here.”
That's why Whitney Tilson and his research team have put together a full analysis, which explains everything you need to know about this new, skyrocketing tech sector.
His analysis also includes the stock name and ticker symbol of their favorite stock pick in this space.
You can access their recent analysis, including the charts, photos, and videos that accompany it, on the Empire Financial Research website, totally free of charge, right here.
There’s NO subscription, NO credit card, and NO e-mail address required to get Tilson’s #1 top stock pick in this booming new sector. Click here to access to Tilson's full analysis and #1 “TaaS” stock pick.