Technology stocks are usually very profitable. While many companies suffered during the pandemic, the tech sector flourished. Some companies even skyrocketed, gaining exorbitant amounts, as people began using various technologies during the lockdowns and restrictions.
Meanwhile, some stocks declined, but they still have a strong potential to rally in 2021. Here are three companies, which may rebound over the coming year.
Uber Technologies, Inc.
This company has posted an excellent 75% return in 2020. It was trading at an all-time high at the end of December. However, the ride-share firm isn’t close to reaching its revenue potential as customers hesitate to book rides due to fears of Covid-19. However, the UberEats delivery service has picked up some of the slack. Even though it’s massively successful, the balance sheet is still in the red, waiting for the return of full passenger loads.
Still, with coronavirus vaccines rounding the world in the first half of 2021, Uber has a good chance to recover losses and rally again.
The social media giant managed to shook off political headwinds in 2020. It avoided the intense scrutiny which its rival Facebook faced. Besides, the company and its CEO Jack Dorsey are engaged in the renovation needed to increase profits. They are working on a new advertising system which is set to come online in 2021.
Twitter came public in the mid-$40s in 2013, posting an all-time high at $74.73 a few weeks later. The stock fluctuated after that, facing many ups and downs. However, it has recently successfully tested new support and established a trading floor that should support low-risk entries.
The Covid-19 pandemic triggered huge forward progress in the digital payments industry. However, Visa stock is highly dependent on the total payment volume. It has suffered due to high unemployment rates, as well as the collapse of travel revenue. Still, both headwinds should dissipate in 2021. In such a case, the financial giant will outperform the past year’s modest 11% return.
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