Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our website policy prior to making financial decisions.
Tech stocks have provided some of the best returns in the past two decades. They have also brought some risks, but in general, technology is among the best performing sectors. Just take a look around, and you’ll see that our world is irrevocably changed by technology.
This doesn’t seem like a thing that’s going to change anytime soon. If anything, technology will continue to dominate for many years to come. Its performance will likely only be matched by the biotech sector, which also shows a lot of promise.
Best Stocks to Buy with $500
There are plenty of pickings in the technology sector, which sees new stocks entering at a shockingly fast pace. In the wealth of stocks that are now available, you only need to pick a handful to earn a good return on your capital. Better to invest in a few good stocks than invest left, right, and center.
Not all technology stocks are at prices that are affordable to many investors. In a day and age where many people are living from paycheck to paycheck, $500 is a lot of money. But for the investor capable of setting aside $500 right now, the following stocks hold promise:
By now, everyone should be familiar Zoom Video Communications — or just Zoom, to most people. It has become the most popular teleconferencing solution during the pandemic. Growth has been astounding since countries began entering lockdown modes. It has performed better against competing products from big-name companies and has a presence in many countries.
Video conferencing and working from home looking like the de facto standard of working for the near future. This and the fact that the financial figures point towards great are the reason why Zoom looks like a good buy.
Zoom has roughly 42.8% of the web conferencing market share; its user base has grown 30 times since December 2019.
At the start of 2020, Zoom held a price of roughly $70 — it is now approximately $480; quarterly reports indicate that this could go even higher as business stick to work-from-home routines.
Salesforce is a cloud software company that provides Customer Relationship Management and analytics solutions, among other things, to enterprises. In the past ten years, a strong company ethos and focused vision has led to consistent gains in share prices. It also runs an investment fund called Salesforce Ventures, and has invested over $1.2 billion to date.
Salesforce’s quarterly reports for 2020 show good growth, with various metrics indicating strong business performance. The numbers suggest that the company is well-positioned to handle crises like that of the pandemic.
Salesforce recorded a net income growth of 2,784.6% on a revenue growth of 29% in its Q2 report.
Q3 FY21 revenue guidance is also up 16% year-over-year.
BlackBerry is quite an old company and is mostly known for its once-ubiquitous mobile phones. Things have changed since then, and BlackBerry is now primarily a cybersecurity company. The company began its software-focused journey with a $1.4 billion acquisition of Cylance in 2019.
Cybersecurity is becoming increasingly important in a world where everything is digitized. The cybersecurity field is only just catching up to the rate of tech development — a consequence of security breaches. There is a lot of opportunity here for investors who keep a close eye on the domain. The good performance is a result of the launch of 30 new products and deeper dives into sectors like IoT.
The company reported an EPS of $0.11, beating analysts’ estimates by $0.02.
The Q2 report also showed quarterly revenue up by 6.1% on a year-over-year.
There’s a wealth of opportunity standing before investors in the current market climate. Some tech stocks are sitting at very undervalued prices, or show potential for great returns. Of course, it’s not so simple as just investing in any tech stock. You need to do your own research, as always, but the sector looks promising compared to others.
$500 is a reasonable amount to get started with tech stocks. You won’t be able to invest in all of them, but you’ll be able to buy a share or two of even the bigger names like Microsoft. Or you could consider investing in a company with possible high growth, like the top growth stocks for October 2020.
What do you think are the best tech stock opportunities at the moment? Will the likes of Shopify grow as analysts say it will? Let us know in the comments below.
Disclosure:Tim Fries has no positions in any of the stocks mentioned, and has no plans to initiate any positions within the 72 hours following the publishing of this article. This article expresses the opinions of Tim Fries. Tokenist Media LLC has no position in any of the stocks mentioned, and does not plan to initiate any positions within 72 hours of the publishing of this article. Please consult our website policy for more information.
Tim Fries is the cofounder of The Tokenist. He has a B. Sc. in Mechanical Engineering from the University of Michigan, and an MBA from the University of Chicago Booth School of Business. Tim served as a Senior Associate on the investment team at RW Baird's US Private Equity division, and is also the co-founder of Protective Technologies Capital, an investment firms specializing in sensing, protection and control solutions.