Now that the U.S. economy is healing and entering a stage of expansion, it is time to feel confident in stocks again. The Federal Reserve has revised its U.S. GDP forecast to show growth at an annualized rate of 6.5% in 2021. A sizeable leap from the 4.2% forecast at the end of last year.
As we saw with the recent US Private Payrolls increase, people have more in their pocket than before and importantly, they are spending too. Essential in an economy that is two-thirds consumer spending driven. Whilst last year was a big year for tech stocks which saw some big names experience double, triple, and more growth. so far this year has been consolidatory.
However, that doesn’t mean the success and high-growth stories are over. With global economic growth, a new digital-first era is emerging, and summer just around the corner, there are some stocks that should be watched this Summer. Here are 3 of those Tech Stocks to watch this Summer:
Square Inc (NYSE: SQ)
Square, Inc. the US financial services and digital payments company based in San Francisco, California was founded in 2009 by Jack Dorsey and Jim McKelvey is in an enviable upward trend since the start of 2020.
The rise of Square Inc. has quite a lot of attention due to its large Bitcoin holdings and surging Bitcoin revenue from trading on Cash App (a Square subsidiary). Despite crashing over 40% from April’s $64k all-time highs, Bitcoin is still up nearly 450% since the start of 2020. It is therefore not surprising that Square Inc (NYSE: SQ) stock has risen around 250% since then. Cash App revenue (excluding Bitcoin-related income) was up 201% to $529 million in the first quarter of this year. and the record number of new users into the Square ecosystem bodes well for the future.
Although Square isn’t profitable at the moment, it will be highly profitable eventually. Gross profit margin was 57% in Q1, up from 49% the same time a year ago.
It is not unthinkable that Square can double in value again in 2021 from its current market cap of $101 billion,
PayPal Holdings Inc. (NASDAQ: PYPL)
PayPal Holdings Inc. (NASDAQ: PYPL) continues to impress, the online payment’s giant has benefited greatly from the digitization of the payments world during the pandemic and will continue to do so for the remainder of the year and beyond.
Its open digital payments platform has over 325 million active account holders. In April, PayPal Holdings announced the launch of crypto on Venmo allowing for Venmo’s 70 million customers to buy, hold, and sell cryptocurrency directly within the Venmo app.
With more people trading crypto than ever before, PayPal’s embracement of the crypto world makes this a good investment.
Alphabet (NASDAQ:GOOGL, NASDAQ:GOOG)
Alphabet remains one of the best investments out there. The company enjoys solid top- and bottom-line growth and its balance is one of the strongest found anywhere.
With a $1.6 trillion market capitalization, Google is seeing a return to growth in the online advertising world and analysts are forecasting revenue to increase 30% this year, alongside 50% earnings growth.
Owners of the two biggest websites in the world, Google.com and YouTube.com, there is still much more growth potential to be realized here.
As the nights get longer and Summer draws upon us, now is a good time to have a refresh of your stock portfolio with these three tech stocks to be strongly considered.
