The stock market has been in tears after its massive plunge in March. De S&P 500 has jumped 20% in the last 12 months, and some of that growth is due to technical stocks performing well despite the pandemic and the US recession.
Many technology companies have grown during the pandemic as their services have become more in demand with the increase in domestic workers. Here’s why for investors looking for technical stocks to add to their portfolios Curse (NYSE: FSLY) en Microsoft (NASDAQ: MSFT) must make the cut. The former is a great bet if you are looking for a growth stock, and the latter offers investment stability in uncertain times.
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Fastly’s rapid growth
Fastly’s services help apps and websites to accelerate their content so that they run faster and better. One of Fastly’s customers is Slap, which uses Fastly to provide tools for messaging and collaboration in the workplace to its millions of users.
As more people spend more time at home, companies have been looking to Fastly to provide fast, reliable Internet services and this is accelerating Fastly’s growth. Sales peaked 62% in the second quarter to $ 74.7 million, and the company’s earnings per share of $ 0.02 were a huge improvement from a loss of $ 0.16 in the previous year. Fixed also proved that the company can grow its customer base amid an economic downturn and added 114 new customers in the quarter, an increase of 6%.
Not only did Fastly have a fantastic quarter, but management increased their outlook for the company’s full revenue, from a previous range of $ 280 million to $ 290 million to the current range of $ 290 million to $ 300 million.
Optimism about Fastly’s future is not limited to managing the company – investors have pushed Fastly’s share price up 343% since the beginning of this year. But do not think that the growth days of the company are behind it. Delivering faster content delivery has already been a major selling point for Fastly’s services for the pandemic, and it is even more so now.
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A reinvented technical stalwart
If you are looking for a technology facility that can help you overcome the current recession en boost your portfolio, Microsoft seems like a good bet.
Microsoft impressed investors when it reported 13% growth in the company’s fiscal fourth quarter, which ended June 30, and sales of its “more personal computer” segment increased 14% year-over-year.
Most importantly, Microsoft’s Azure cloud computing business continued to grow during the quarter, with sales from the segment jumping 47%. Cloud computing infrastructure has become an important service for businesses of all sizes that need a cloud platform to develop websites, apps and other services. The cloud computing infrastructure market is expected to grow from $ 73 billion in 2019 to an estimated $ 167 billion in 2024, and the good news for Microsoft investors is that the company already owns 18% of this market, only after Amazon in space.
Microsoft was once synonymous with Office and Windows, but in recent years the company has reinvented itself in a cloud computing. When you combine the company’s position in the cloud with its stability as a long-term technological leader, you get an investment opportunity that not only surpasses the current economic storm, but also benefits from emerging tech markets.
