Tech stocks, in particular, have been at the top of investor wish lists as the pandemic has forced people to spend more time at home than ever before, using various tech products and services to get things done. But even tech stocks have seen volatility, as investors sold off some of their stocks in early September.
So where does it all leave the market now? Despite the unpredictability of stocks, investors should not be afraid of the market. Long-term investors understand that buying stocks and holding them for years is always a great way to build wealth, no matter what has happened over the past few months.
And if you’re looking for some great places to invest your money right now, there are plenty of opportunities. here’s why Quickly (NYSE: FSLY), Square (NYSE: SQ), and NVIDIA (NASDAQ: NVDA) should be at the top of your list of potential stocks to buy in October.
1. Quickly: this company is moving at the speed of light
If you’re not familiar with Fastly, know that this tech stock has benefited companies looking to speed up their websites and apps in 2020. For example, one of Fastly’s biggest customers is ByteDance’s TikTok, which youits Fastly services to deliver TikTok videos quickly and efficiently to users.
But while TikTok accounts for around 12% of Fastly’s revenue, the company has many opportunities that go beyond the video sharing app. For example, Fastly added 114 new customers in the second quarter and has high profile customers on its list, including Shopify, Spotify, and Mou.
Fastly’s strong second quarter earnings showed investors how well the company is doing despite the pandemic as year-over-year sales increased by 62%. Also, the company’s adjusted earnings per share (EPS) of $ 0.02 exceeded Wall Street’s consensus estimate of an EPS loss of $ 0.01 for the quarter. And there could be more growth where it’s coming from.
With people spending more time at home than ever, businesses are looking for ways to make the online experiences of users and customers as good as possible. And even when the pandemic is in the past, it is likely that businesses will continue to use Fastly’s services to expand their online entertainment, shopping and communications services.
2. Square: it’s always trendy to be Square
Another fast growing company that investors might be wise to invest in right now is payments solutions company, Square. You’ve probably seen the company’s glossy white point-of-sale terminals in coffee shops and other retailers, but Square is also a game about digital payments and e-commerce.
Square’s online payment processing services and its popular peer-to-peer payment app, called Cash, have benefited from an influx of digital payments during the COVID-10 pandemic. The switch to digital payments helped Square’s revenue increase 64% in the last quarter and boosted its app Cash sales by 140% (excluding Bitcoin transactions).
Square was already benefiting from consumers’ transition to e-commerce before the pandemic, and it’s likely that even after normalcy returns, the business will still see growth in this market. Indeed, e-commerce accounts for only 16% of total retail sales in the United States. The e-commerce market is expected to become a Market of $ 476 billion by 2024, up from $ 374 billion this year. And as it does, Square’s Cash app and its online payment processing services will be able to grow alongside it.
3. NVIDIA: this technological stock collects its chips
And last, but not least, is NVIDIA. Some inventors may already be very familiar with this company, but if you aren’t, just know that NVIDIA is the leader in discrete graphics processing units (GPUs) that power some of the best computer graphics on the market.
NVIDIA has been the GPU manufacturer of choice for years and currently has around 80% of the discrete GPU market. But the company has also found ways to use its GPUs for more than just gaming, and its chips are now powering artificial intelligence processes for some of the world’s biggest tech companies, and being used as image processing brains. for semi-autonomous. Vehicles.
NVIDIA has capitalized on its leadership in chips, and its latest quarterly figures show how well it is doing. Total revenue grew 50% in the second quarter, while the company’s data center sales grew 167%. Additionally, NVIDIA’s earnings per share exploded with a 76% gain from the previous year quarter.
That would all be pretty impressive on its own, but NVIDIA could become an even greater powerhouse of chips once it completes its acquisition of Arm Holdings. NVIDIA has entered into an agreement to purchase Arm from SoftBank Group for $ 40 billion in cash and stock and plans to complete the purchase in 18 months. Why is this deal important to NVIDIA? Because Arm is licensing the chip designs that are found in about 90% of smartphones. Once the deal is done, this will make NVIDIA a key player in the smartphone market in addition to its already prolific role in the GPU space.
Buy and hold, then keep more
The stock market is always a little unpredictable, but it is even more so now as investors try to figure out how to invest during a recession caused by a pandemic. This means that you may need to be prepared to deal with large fluctuations in stock prices in the months to come. The best approach to buying these stocks is to commit to holding them for several years, not months, in order to give them time to get ahead of the market and profit from the moves they are currently making.