7 tech stocks that could be the future FAANG
A few months ago I started thinking about the idea: « What are the future FAANG stocks? » We’ve seen Apple (NASDAQ: AAPL), Amazon (NASDAQ: AMZN), and other tech stocks rise from humble winners to global giants. Those stocks rose from $ 100 billion to $ 1 trillion in market capitalization. So many people talk about what it would be like if we bought Apple in the 1980s or Amazon in 1999. While anyone who did this and was able to keep themselves off is ridiculously rich, they have also been through a lot of volatility. InvestorPlace – Stock Market News, Stock Advice & amp; Trading Tips In addition, investors could have waited until after the iPhone moment from Apple or the clear dominance of Amazon in e-commerce and still got a return on investment 10 times or more. Do not you believe me? Apple is up over 1,000% over the past decade, while Amazon is up 1,760%. Over the past five years – when it was absurdly clear that these two were well-established companies – Apple and Amazon were up 463% and 442%, respectively. That got me thinking about what are the next technology stocks that could become new FAANG leaders. Specifically, I’m looking for companies with a market cap of $ 50 billion to $ 300 billion that can range from $ 400 billion to $ 1 trillion or more. There’s a lot to choose from, but who cares – these winners are right under our noses. Let’s look at seven tech stocks: 7 Safe Stocks to Buy for Solid Returns in Turbulent Times PayPal (NASDAQ: PYPL) Salesforce (NYSE: CRM) Nvidia (NASDAQ: NVDA) Advanced Micro Devices (NASDAQ: AMD) Roku (NASDAQ: ROKU) Shopify (NYSE: SHOP) Adobe Systems (NASDAQ: ADBE) technical stocks available for purchase for future profits: PayPal (PYPL) Source: JHVEPhoto / Shutterstock.com Current Market Cap: $ 295 Billion Many investors continued to underestimate PayPal. When it comes to FAANG technology stocks in the recent past, this seems like a fundamental observation too. However, PayPal has found a way to become a payment juggernaut. Sending money to friends and family is free and convenient, it’s just part of the ecosystem. The company also generates increases in sales when it involves another company or dealer. It’s a safe, trusted, and convenient way for businesses to sell online or make subscriptions a breeze. PayPal’s acquisition of Venmo and Honey has only added to these commitments, while e-commerce will continue to be the main catalyst for growth. For those involved in technology stocks, there is no need to explain the power and trend of e-commerce. After all, PayPal is now in the cryptocurrency game that allows customers to buy and sell Bitcoin, Bitcoin Cash, Etherium, and Litecoin. PayPal may not be able to collect its current « fee » – that is, commission – for these transactions forever, based on how stock commissions have disappeared almost overnight in the brokerage industry. For now, however, it should act as an additional growth catalyst. Bonus: With a market cap of $ 100 billion, Square (NYSE: SQ) could also be considered a member of new FAANG technology stocks in this regard. Salesforce (CRM) Source: Björn Bakstad / Shutterstock.com Current market capitalization: 206 billion US dollars. It goes without saying that, given the massive gains the stock market has seen over the past nine months, the ideal scenario would be a sizable correction for some of the stocks on this list. However, this does not apply to everyone. N Take Salesforce, for example. This company continues to print money as revenue continues to grow. Despite all of the doubts Salesforce has had over the years, it has done reasonably well. It doesn’t seem like management plans to stop either. For example, management aims to have sales of $ 60 billion by 2034. Finally, Slack (NYSE: WORK) is to be expanded, the presence on workstations expanded and the fight against Microsoft (NASDAQ: MSFT) intensified. 8 Cheap Stocks To Buy On Your Next Stimulus Check Since pullbacks are involved, Salesforce is a great example of e. At the recent lows, stocks were 25% below their highs. This seems like a great opportunity for a company that has consistently achieved over 20% revenue growth. Nvidia (NVDA) Source: Diverse Fotografie / Shutterstock.com Current market capitalization: 335 billion US dollars Admittedly slightly larger than we were looking for, Nvidia has to be included in this list. Almost every major technological trend is growing in demand. More internet traffic puts a strain on the cloud and increases the demand for edge cloud computing. More data requires more data centers. Increasing the capabilities of self-driving vehicles requires more computing power. Better computers require better graphics. The list goes on and on and Nvidia is there every step of the way. The company’s products serve multiple end markets with impressive worldly growth. This is why Nvidia has seen such an extreme acceleration in both revenue and revenue despite the pandemic. His savvy M&A strategy has enabled him to add high quality names like Mellanox to reasonable ratings. Now Nvidia Arm is pursuing a massive $ 40 billion deal. Nvidia is already approaching an unstoppable state, but with Poor it would be a juggernaut. From a purely antitrust perspective, Nvidia should be fine. However, this « juggernaut » position can lead to hiccups. Either way, it is a high-quality name that will keep growing in size over time. Advanced Micro Devices (AMD) Source: Diverse Fotografie / Shutterstock.com Current market capitalization: 111.5 billion US dollars We have Advanced Micro Devices for Nvidia’s smaller siblings. At roughly a third the size, AMD has climbed the ladder quickly while improving its finances dramatically. CEO Lisa Su has staged one of the most impressive comeback stories on the stock market. After AMD was declared dead, it traded well below the $ 2 mark in 2016. With a 52-week high of $ 99 and change, the lead was excellent. Like Nvidia, AMD is in several secular growth themes as the demand for technology outcomes increases ts rising demand for AMD. Like Nvidia, AMD saw massive spikes in sales and profits during the pandemic. In one final final settlement with Nvidia, AMD is also working on closing a major acquisition. In October, the company agreed to acquire Xilinx for $ 35 billion. 9 stocks are currently selling at a discount Although it would take years to see more growth, it’s not hard to imagine AMD growing to the size of Nvidia ($ 300 billion). Eventually clearing this level could bring it to the lower end of the FAANG status in terms of size. Roku (ROKU) Source: jejim / Shutterstock.com Current Market Cap: $ 53 billion Roku is a tough question as it’s by far the smallest name on this list and has just had a massive rally. Shares are up 90% in the past three months as Roku is off a market cap from just $ 28 billion to its current level. In addition, investors simply do not understand this company. They still think that Amazon is going head to head with its stick players. That’s true, but the story behind Roku isn’t the hardware, it’s the platform. Roku doesn’t care if he makes money with the hardware. Instead, the focus is on the platform that charges content providers and ad revenue from the free Roku channel. In this regard, growth continues to explode. Analysts expect revenue to grow around 50% this year, followed by 40% growth in 2021 and 36% growth in 2022. I respectfully believe this can be conservative. Bulls will recognize that a pullback may be appropriate (and potentially a big one at that). I don’t think Roku is at the top, however. For AMD, I mentioned the « low end of FAANG status » which is Netflix (NASDAQ: NFLX). This currently equates to a market capitalization of $ 250 billion. Remember, NFLX has hit a new high. I was able to see a scenario where Roku pulls back 20% to 25% – which equates to a market cap of around $ 40 billion – and ultimately grows to a company of more than $ 200 billion. Shopify (SHOP) Source: justplay1412 / Shutterstock.com Current Market Cap: $ 145 Billion There’s one problem with Shopify and several other names on this list: the rallies. While the massive rallies are great for long-term investors, they also make stocks prone to large pullbacks. If and when we get these declines, this is an opportunity for investors to take a dive. For Shopify, the bullish reasoning is diverse. First, Shopify is following a very big trend – ecom merce – and will therefore continue to benefit from robust growth. When the coronavirus hit, sales were not negatively affected. Instead, merchants flocked to the platform, increasing Shopify’s sales. Second, the anti-Amazon business platform is being expanded, giving merchants great and small power and control over the customer experience. Now the rewards are huge here as Shopify is building multiple lines of business like Shipping, Credit, Shopify Pay, and others. However, the risk is also there. That said, can these companies crave independence from Amazon delivery quality experiences for the customer? In the end, companies and retailers are at least willing to try. In December 2019, I said investors could buy Shopify despite its high valuation. My argument centered on the valuation that this name could go from a $ 40 billion market cap to a $ 100 billion to $ 120 billion market cap in a decade. 7 Safe Stocks to Buy for Solid Returns in Turbulent Times It wasn’t clear that the value would more than triple in just a few months. In the long run, it’s not hard to imagine this name being significantly higher. Adobe Systems (ADBE) Source: r.classen / Shutterstock.com Current market capitalization: 228 billion US dollars Last but not least is Adobe. This company does a lot more than just Flash or Photoshop. It is becoming a supporting pillar in e-commerce and at the same time a beacon in the graphic, digital and creative landscape. Find me a freelance graphic designer who doesn’t use Adobe. The stock has also quietly made huge gains. Adobe is up 140% in the last three years and 430% in the last five years. Over the past decade, the stock has gained more than 1,300% as its market cap was around $ 16 just 10 years ago Billion USD. It’s a formidable move, and Adobe isn’t showing much sign of easing. Analysts expect double-digit earnings and revenue growth this year and next, while the company’s gross margin remains solidly above 85%. While profit margins were stable, the bottom line was that profit margins rose sharply. Adobe is quickly and quietly becoming a technology juggernaut right in front of us. Like several others on this list, the stock has consolidated well over the past six months. Let’s see if this name can be resolved upwards. At the time of publication, Bret Kenwell was long in AAPL, ROKU, CRM and NVDA. Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. More From InvestorPlace Why Everyone Is Investing In 5G All FALSE Top Stock Pickers Reveal Their Next 1,000% Winner It doesn’t matter if you save $ 500 or $ 5 million. Do this now. 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