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7 technical stocks that could be the future FAANG
A few months ago, I started thinking about the idea of, “What are the future FAANG stocks?” We’ve seen Apple (NASDAQ: AAPL), Amazon (NASDAQ: AMZN) and other tech stocks swell from modest winners to world champions. These shares rose from $ 100 billion to $ 1 trillion in market capitalization. So many people are talking about what it would be like if we bought Apple in the 1980s or Amazon in 1999. While someone who has done this so far and has been able to hold on is ridiculously rich, they have also put up a lot of volatility. InvestorPlace – stock market news, advice on advice and trading – investors could have waited longer until after Apple’s iPhone moment or Amazon’s clear dominance over e-commerce and still made a 10x or more return on their investment. Do not believe me? Apple has risen more than 1,000% over the past decade, while Amazon has risen 1,760%. Just over the past five years – when it became absurdly clear that these were two established leaders – Apple and Amazon have risen by 463% and 442% respectively. It made me think, what are the next technological stocks that could become new FAANG leaders? I am specifically looking for companies in the market capitalization area of $ 50 billion to $ 300 billion that can amount to $ 400 billion to $ 1 trillion or more. Admittedly, it’s a wide variety, but who cares – these winners are right under our noses. Let’s look at seven technology stocks: 7 safe stocks to buy for solid returns in Tumultuous 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) Tech Shares to Buy for Future Profits: PayPal (PYPL) Source: JHVEPhoto / Shutterstock.com Current Market Value: $ 295 billion. Many investors still underestimated PayPal. As for FAANG technology stocks in their younger years, it also seems to be an important observation of them. However, PayPal has found a way to become a payment juggernaut. While it’s free and easy to send money to friends and family, it’s simply one part of the ecosystem. The company also makes some sales if it involves another business or dealer. It has become a safe, reliable and easy way for businesses to sell online or to make subscriptions a piece of cake. PayPal’s acquisition of Venmo and Honey has only contributed to the low levels of engagement, while e-commerce will still be the main catalyst behind its growth. For those looking at technological stocks, the power and trend of e-commerce need not be explained. Finally, PayPal is now in the cryptocurrency game, enabling customers to buy and sell Bitcoin, Bitcoin Cash, Etherium and Litecoin. PayPal may not be able to collect its current ‘fee’ – read: commission – forever on these transactions, based on how stock commissions disappeared into the brokerage industry almost overnight. For now, however, it should be an additional growth catalyst. Bonus: at a market capitalization of $ 100 billion, Square (NYSE: SQ) could also be a consideration as a member of new FAANG technology stocks in this regard. Salesforce (CRM) Source: Bjorn Bakstad / Shutterstock.com Current market capitalization: $ 206 billion. It goes without saying that the ideal scenario is a significant correction for several of the stocks on this list, given the tremendous gains the stock market has registered over the past nine months. However, this does not apply to everyone. Take Salesforce, for example. This company continues to push money as revenue continues to rise. Despite the doubts that Salesforce has endured over the years, it has done pretty well. Nor does it seem like management is planning to quit. For example, management wants to generate $ 60 billion in revenue by 2034. Recently, it has been aiming to increase Slack (NYSE: WORK), increase its workstation presence and sharpen its fight against Microsoft (NASDAQ: MSFT). 8 Cheap Stocks To Buy With Your Next Stimulus Test Since we’re talking about refunds, Salesforce is an excellent example. At the recent low, equities were 25% lower than the highs. This seems like a great opportunity for a company that is constantly growing 20% more revenue. Nvidia (NVDA) Source: Sundry Photography / Shutterstock.com Current market capitalization: $ 335 billion. It may be a little bigger than what we were looking for, but Nvidia should be included on this list. Almost every major technological trend is increasing. More internet traffic creates tension in the cloud, which increases the demand for edge-cloud computers. More data creates more need for data centers. Increasing self-management capability requires more computing power. Better computers demand better graphics. The list goes on and on and Nvidia is there around every turn. The company’s products cover several end markets with impressive secular growth. Therefore, despite the pandemic, Nvidia has seen such an extreme acceleration in earnings and revenue. Its clever M&A strategy has enabled it to add high quality names like Mellanox at reasonable valuations. Now Nvidia is going after Arm, a huge $ 40 billion deal. Nvidia is already approaching an unstoppable state, but with Arm it would be a juggernaut. From a purely antitrust perspective, Nvidia should be good. However, this “juggernaut” position can cause brackets. Either way, it’s a high quality name that will only grow in size over time. Advanced Micro Devices (AMD) Source: Sundry Photography / Shutterstock.com Current market value: $ 111.5 billion For Nvidia’s smaller sibling, we have Advanced Micro Devices. About one-third of the size, AMD quickly climbed the ladder and drastically improved its finances. CEO Lisa Su has orchestrated one of the most impressive stock market backlinks. After dying, AMD traded firmly below the $ 2 mark in 2016. The leadership was now a 52-week high of $ 99 and changing. Like Nvidia, AMD is situated in several secular growth themes as the increasing demand for technology results in an increasing demand for AMD. Like Nvidia, AMD saw a huge increase in revenue and profits during the pandemic. In a final final comparison with Nvidia, AMD is also working to close a major acquisition. In October, the company agreed to acquire Xilinx for $ 35 billion. 9 shares currently being sold at a discount, although it would require more years of growth, it is not difficult to imagine that AMD will become as big as Nvidia ($ 300 billion). Eventually, this level can be removed at the bottom of the FAANG status, in terms of its size. Roku (ROKU) Source: jejim / Shutterstock.com Current market capitalization: $ 53 billion Roku is difficult because it is definitely the smallest name on this list (many) and has just gone on a massive rally. Shares have risen 90% over the past three months as Roku has climbed from a market capitalization of just $ 28 billion to where it is today. In addition, investors just do not understand this company. They still think it’s going head to head with Amazon with its stick players. While this is true, the story behind Roku is not the hardware – it’s the platform. Roku does not care if it makes money on the hardware. Instead, it focuses on the platform, where it collects fees from content providers and on advertising revenue from its free Roku channel. In that respect, growth continues to grow. Analysts expect about 50% growth in revenue this year, followed by 40% growth in 2021 and 36% growth in 2022. I believe this could be conservative. Bulls will admit that a setback could be okay (and a potentially big one at that). However, I do not think the top is for Roku. For AMD, I mentioned the ‘bottom of the FAANG status’, which would be Netflix (NASDAQ: NFLX). Currently, it has a market capitalization of $ 250 billion and remember, NFLX is at a new high. I could see a scenario where Roku pulls back 20% to 25% – giving a market capitalization of about $ 40 billion – and eventually expands to a $ 200 billion entity. Shopify (STORE) Source: justplay1412 / Shutterstock.com Current market value: $ 145 billion There is one problem with Shopify and several other names on this list: the rallies. While the big marches are ideal for long-term investors, it also makes the stock prone to major downturns. If and when we get the declines, it’s investors’ chance to jump. For Shopify, the positive reasoning is multiple. First, Shopify is undergoing a huge trend – e-commerce – and will therefore continue to benefit from strong growth. When the coronavirus struck, sales were not negatively affected. Instead, retailers flocked to its platform, increasing Shopify’s revenue. Second, it expands the anti-Amazon business platform, giving merchants large and small power and control over the customer experience. The rewards here are great now, as Shopify is expanding various business segments such as delivery, credit, Shopify Pay and others. However, the risk is also present. Can it be said that these companies that the customer depends on can experience independence from Amazon delivery quality? Ultimately, businesses and retailers are at least willing to give it a try. In December 2019, I said investors can buy Shopify despite its high valuation. My argument was about valuing it and saying that this name could go from a $ 40 billion market capitalization to a $ 100 billion to $ 120 billion market capitalization in a decade. 7 Secure shares to buy for solid returns in turbulent times It was not obvious that the more than tripling of the value would take place within a few months. In the long, long term, it’s not hard to imagine that this name is significantly higher. Adobe Systems (ADBE) Source: r.classen / Shutterstock.com Current market value: $ 228 billion Last but certainly not least is Adobe. This company does much more than just Flash or Photoshop. It has become a mainstay in e-commerce and also become a beacon in the graphic, digital and creative landscape. Find me a freelance graphic designer who does not use Adobe. The stock also quietly made huge profits. Adobe has risen 140% over the past three years and 430% over the past five years. Over the past decade, the stock has risen more than 1,300% since market capitalization was around $ 16 billion just ten years ago. This is an impressive action and Adobe does not show many signs of disappointment. Analysts expect to make double-digit revenue growth this year and next, while the company’s gross margins remain firmly above 85%. While its top margins were steady, profit margins rose to the bottom. Adobe is fast, but quietly, becoming a technological juggernaut right in front of us. Like some others on this list, the stock has consolidated well over the past six months. Let’s see if this name can be the best. At the date of publication, Bret Kenwell holds a long position 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 invests in 5G. ALL WRONG Top Stock Voters Reveal His Next 1,000% Winner. It does not matter if you are saving $ 500 or $ 5 million. Do it now. The report 7 Tech Stocks That Could Be the Future FAANGÂ appears for the first time on InvestorPlace.