The rotation out of technology stocks appears to have been short-lived. With second-quarter earnings season underway and the mega-cap technology companies reporting their results, we’re reminded yet again why tech stocks lead the market and are the best growth securities that investors can own.
Whether it’s artificial intelligence (AI), cryptocurrencies, cloud computing, streaming, or e-commerce and fintech, technology and innovation continue to drive both society and the stock market forward. Leading tech stocks are a good bet for continued outperformance as we move through the year’s second half.
Here are three tech stocks to bet on for market-crushing returns.
Coinbase Global (COIN)
Analysts at U.S. bank Citigroup (NYSE:C) just upgraded the stock of cryptocurrency exchange Coinbase Global (NASDAQ:COIN) to a buy rating from neutral. Citigroup also raised its price target on Coinbase stock to $345 a share from $260. The analysts said in a note to clients that Coinbase is likely to benefit moving forward from an improving regulatory environment in the U.S. as well as from trading activity related to new cryptocurrency exchange-traded funds (ETFs).
Coinbase stock upgraded on the day when spot Ethereum (ETH-USD) ETFs began trading on U.S. exchanges. The arrival of spot Ethereum ETFs could give a boost to Coinbase Global, the largest crypto exchange in the U.S., which relies on trading activity for its revenue and profits. Citigroup also said that the increased adoption of cryptocurrencies could provide a tailwind to Coinbase stock, which has risen 160% over the last 12 months.
Amazon (AMZN)
Amazon (NASDAQ:AMZN) is riding high after its latest “Prime Day” sales event generated a record $14.2 billion in online spending. Sales during the two-day extravaganza were up 11% from last summer’s event and topped the estimates of Wall Street analysts, according to data from Adobe Analytics. The results even topped Amazon’s forecasts that had called for $14 billion in online sales during the summer sales event.
Back-to-school shopping and purchases of electronics such as tablets and TV sets drove record sales. Other top selling items included household essentials and apparel and shoes. Adobe Analytics noted that shoppers spent more per order at this summer’s Prime Day event, with an average order size of $57.97, up from $54.05 a year ago.
Amazon holds Prime Day sales events twice a year, and they have become a big revenue driver for the company. It reports its latest financial results on August 1. The stock of Amazon has increased 45% over the last 12 months.
Netflix (NFLX)
Streaming giant Netflix (NASDAQ:NFLX) just reported second-quarter financial results that exceeded Wall Street forecasts on the top and bottom lines due largely to a 34% increase in its number of ad-supported memberships. The company announced EPS of $4.88 versus $4.74 that was expected among analysts who track the company’s progress. Revenue reached $9.56 billion, exceeding the $9.53 billion expected on Wall Street. Sales were up 17% from a year earlier.
Total memberships at Netflix rose 16.5% year-over-year to 277.65 million worldwide at the end of June. That number was better than the 274.4 million expected among analysts. Executives stressed that the company is getting a boost from advertising revenue on its streaming platform and subscriber growth for its cheapest ad-supported tier. Netflix subscribers to its lowest priced monthly plan that includes advertisements now account for nearly half of all new sign-ups.
NFLX stock has increased 50% in the last 12 months, including a 37% gain so far this year.
On the date of publication, Joel Baglole did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, the responsible editor did not have (either directly or
indirectly) any positions in the securities mentioned in this article.