The S&P 500 and Nasdaq Composite have rallied between 60% and 75% since their March lows.
And despite cyclical stocks dominating recent headlines, it remains clear that tech stocks are the real pandemic winners. Big-named FANG stocks such as Facebook and Amazon have surged more than 80% in the months following the spread of COVID-19.
This positive trend is unlikely to end anytime soon. Microsoft founder Bill Gates said the novel respiratory disease has fundamentally changed the way consumers live and work.
That means trends like Zoom video meetings, online document management, and binging the latest Netflix shows are here to stay… with or without COVID-19.
That’s why I’m bringing you three new tech stocks to capitalize on new and emerging technology trends that’ll continue even after economic activity returns to “normal.”
No. 3: The Streaming Stock with the Most Growth Potential
Streaming content aggregator Roku (NASDAQ: ROKU) has already made it clear that it’s one of the best ways to profit from the streaming wars.
Unlike companies such as Disney and Netflix, Roku isn’t in direct competition with any of the major names. Roku’s streaming devices allow its users to pick between Amazon Video and other options as a strictly third-party platform.
That means there aren’t any conflicts of interest in comparison to streaming devices from Apple or Amazon that exclusively show their own content.
And as competition heats up between the heavy hitters, consumers can take advantage of Roku’s streaming box to easily watch content… whether it be from Netflix, Amazon, or other services.
Even more, Roku has a series of agreements with television manufacturers such as Sharp, Philips, and Sanyo… though, the list goes on. This enables Roku to stay relevant, as the companies use the streaming aggregator’s software in their own Smart TVs without the need for an external device.
This business model has clearly worked for the company… even through COVID-19. In its most recent earnings report, the company reported an EBITDA of $56.2 million compared to analysts’ estimated loss of $10.7 million.
In the third quarter, Roku’s revenue surged to $451.7 million, also crushing prior expectations of $369.1 million. Total device sales soared by 57% in the same period. And active accounts jumped by 43%.
As direct-to-consumer models continue to become more prevalent, Roku forecasts its next quarter will see a 40% growth in revenue. The company also sees its platform margins being between 50% and 60%.
No. 2: The Top Video Game Stock on the Market
Gaming hardware company Corsair Gaming (NASDAQ: CRSR) has been on a tear recently. The company’s shares have rocketed over 100% since its initial public offering back in August.
And it’s really no surprise why… 2020 has seen an unprecedented amount of demand for the latest videogame-related products and entertainment.
That’s because as cases ebb and flow, consumers are continuing to choose to stay indoors to avoid infection. In order to entertain themselves, many are turning to video games and streaming platforms.
Corsair is known for making high-end video game hardware that capitalizes on both of these fronts. While the company sells pre-made gaming PC behemoths, computer mice, and gaming keyboards, it also sells streaming equipment such as headsets, chairs, and microphones.
This has paid off in spades for the company amid COVID-19, and it’ll likely continue to benefit once it inevitably dies down.
In Corsair’s third quarter, the company reported earnings per share of $0.40 compared to analysts’ projected earnings of $0.26. Corsair’s EBITDA was $63.7 million versus the estimated EBITDA of $44.2 million.
The newly public company’s revenue came in at $457.1 million, beating expectations of $400.3 million.
Corsair expects to report even stronger numbers in the fourth quarter… citing that today’s younger generation is fully immersed in digital culture and likely will be for their entire lives.
That means they’ll continue to build their own PCs, buy pre-made computers, and absorb massive amounts of streamed content both on their desktops and mobile devices.
So, the company anticipates revenue will more than double in the next quarter to $1.62 billion to $1.63 billion. But this is only the beginning of a much larger gaming trend…
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During the consumer robotics boom, he told them to get into a company called iRobot…
Before it shot up 1,696%…
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In 2013, when the smartphone market was still young, he recommended investors get into Universal Display Corporation…
Which rocketed 4,991%…
Turning the same stake into $127,275.
Heck, he even recommended investors get into Bitcoin when it was sitting $30 a coin…
Before it exploded 65,400%…
Transforming every $2,500 into $1.6 million.
Clearly, it pays to listen to his recommendations.
And today, he’s making a new one that he’s confident will return more than iRobot, Universal Display Corporation, and Bitcoin combined.