Tech Stock Analysis: Top Tech Trends of 2020; Part 1

Tech Stock Analysis: Top Tech Trends of 2020Tech Trends in 2020

What will be the biggest tech stock trends in 2020? The top technologies that could disrupt the markets in 2020 include artificial intelligence (AI), 5G, Internet of Things (IoT), cloud computing, cybersecurity, and automation.

Despite the rapidly changing face of technology, these trends may already sound familiar to you. That’s mostly because it takes time for trending technologies to mature and gain long-term, sustained momentum.

That also means investors still have time to delve into any of the following top tech trends of 2020 and find tomorrow’s big winners.

Trending Tech Stocks to Watch in 2020

There are a lot of great tech stocks that get overshadowed by flashier stocks like Facebook, Inc. (NASDAQ:FB). Sure, Facebook deserves attention—it’s an industry juggernaut—but it’s hard to beat the market when you are the market.

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Case in point: in 2019, Microsoft Corporation (NASDAQ:MSFT) and Apple Inc. (NASDAQ:AAPL) saw their share prices rise 86% and 55% respectively and accounted for roughly 15% of the S&P 500’s annual gains.

Strong gains indeed, but there are overlooked stocks out there doing even better. Investors looking for market-trouncing stocks should keep an eye on the following tech stocks in 2020.

Docusign

Docusign Inc (NASDAQ:DOCU) continues to be one of the most interesting tech stocks out there. The electronic-signature company went public in April 2018 at $29.00 per share and closed out 2019 at $74.11, for a cumulative gain of 155.5% and a yearly gain of 88.7%.

That strong momentum has carried into 2020 and should continue.

In its December 2019 filing, the company delivered another strong quarter of year-over-year revenue growth, significant growth in its global customer base, and its eighth quarter of non-generally accepted accounting principles (GAAP) profitability. (Source: “DocuSign Announces Third Quarter Fiscal 2020 Financial Results,” Docusign Inc, December 5, 2019.)

The company also provided strong guidance.

Digital Turbine

Digital Turbine Inc (NASDAQ:APPS) was another big winner in 2019 that should be able to replicate its success in 2020. A provider of media and mobile communication solutions, the company’s share price advanced 304% in 2019.

As one would expect with these kinds of gains, Digital Turbine has been reporting strong financial results and has been expanding its platform internationally. (Source: “Digital Turbine Reports Fiscal 2020 Second Quarter Results,” Digital Turbine Inc, November 4, 2019.)

Cardlytics

Cardlytics Inc (NASDAQ:CDLX) investors had a great 2019, with the company’s stock rising 500%.

Cardlytics partners with financial institutions and takes debit, credit, and bill-payment data from banking customer accounts. It then uses this data to create personalized banking reward programs.

Despite the stock’s huge gains in 2019, Wall Street expects Cardlytics to continue expanding in the U.S. and internationally.

EverQuote Inc

EverQuote Inc (NASDAQ:EVER) could be the best tech stock you’ve never heard of. The company operates the largest online marketplace for insurance in the U.S., connecting consumers with insurance providers.

That may not sound like fun, but thanks to a string of strong financial results, the company’s share price soared 725% in 2019.

In EverQuote’s November 2019 filing, its revenue jumped, marking the company’s first quarter of profitability. It also raised its full-year guidance. (Source: “EverQuote Announces Third Quarter 2019 Financial Results,” EverQuote Inc, November 4, 2019.)

Tech Industries That Could Boom in 2020

Artificial Intelligence: Best AI Stocks in 2020

Artificial intelligence (AI) has finally evolved to a point where it is making a significant impact on our lives. It’s hard to find an industry where AI isn’t being used. Banking, software, Internet, automobiles, and healthcare are just a few sectors that have adopted AI technology.

AI uses complex computer algorithms and large amounts of data to find patterns, learn, and make predictions like humans. It’s going to be interesting to see where AI takes us over the next 10 years.

It’s tough to find overlooked stocks in the AI arena. Most of the big players are already well known. The kind of infrastructure needed to be a leader in the AI field is not something you’ll find in someone’s basement.

Still, there are some AI stocks that are not getting discussed at the office water cooler.

Nvidia

Nvidia Corporation (NASDAQ:NVDA) is foundational to AI.

Nvidia is ahead of the curve and has all of the AI bases covered. Nvidia’s graphics processing unit (GPU) is expected to provide a 1,000-times speedup by 2025. At the core of this speedup process is Nvidia’s “Cuda” platform.

Cuda can help speed up virtually any type of computing application, putting Nvidia at the front of the pack. It can be used in data centers, autonomous machines, self-driving cars, healthcare, deep learning, and more.

Alphabet

Alphabet Inc (NASDAQ:GOOG), also known as Google, has cornered 92.7% of the global search-engine market. (Source: “Search Engine Market Share Worldwide,” StatCounter, last accessed January 7, 2020.)

Alphabet is hoping to be the same kind of leader when it comes to AI. It has a big head start on the competition.

AI is a predictive technology that evolves as relevant data is added, researched, analysed, and incorporated into a system. Suffice it to say, few businesses have more access to information than Alphabet.

The company has been snapping up AI firms and promoting its “AI first” vision, which means making major investments in non-core ventures like healthcare, finance, insurance, cybersecurity, transport, IoT, and robotics.

Microsoft

Microsoft Corporation has been developing AI software since the concept was a twinkle in the tech industry’s eye. In 2016, it created an AI and research group, which today is made up of more than 8,000 people.

In March 2018, Microsoft announced that it was restructuring its business into three major divisions, giving even more attention to its cloud and AI offerings.

Like Alphabet, Microsoft has been acquiring AI companies to help it further its agenda.

LivePerson

LivePerson, Inc. (NASDAQ:LPSN) was one of the best-performing AI stocks in 2019 and continues to be one of the most compelling AI stocks in 2020.

The company’s real-time messaging platforms for web site and social media accounts make it easier for customers to communicate with their favorite brands.

And the way people communicate is just as important as what they have to say. For example, in 2002, customers communicated primarily through voice calls, with some messaging. In 2020, consumers primarily communicate through messaging and social media, with some voice.

Through “LiveEngage,” businesses can sell their products and answer questions using the world’s most popular messaging channels, including live, AI-powered bots, and call-to-message.

LivePerson has been achieving record revenue growth and has revised its guidance higher.

Aptive PLC

A whopping 94% of all motor vehicle accidents are caused by human error. Aptiv PLC (NYSE:APTV) hopes that its AI technology will make human error a thing of the past.

Aptiv is an automotive technology company whose AI tech is helping usher in the next generation of autonomous vehicles. It is also actively working on the next generation of smart cities and connectivity.

Thanks to strong financial results, a strategic acquisition, a joint venture with Hyundai Motor Co (OTCMKTS: HYMTF, KRX: 005380), and a strong long-term outlook, Aptiv is an AI stock that investors should keep on their radar.

Cloud Computing: Best Cloud Stocks in 2020

Cloud computing is about providing on-demand computing services (storage, servers, databases, software, analytics, software, etc.) over the Internet.

Because cloud computing services are usually provided on a pay-as-you-go basis, businesses save money by avoiding upfront costs of owning and maintaining their own IT infrastructure.

The goal of cloud computing is to make operations faster and more efficient, allowing businesses to scale as needed.

Most people use the cloud on a daily basis without knowing it. This includes activities like using “Gmail,” backing up photos on smartphones, and streaming videos on “Netflix.”

Because the world is increasingly connected, more and more businesses are switching to the cloud.

Key players in cloud computing include Alphabet, Microsoft, IBM (NYSE:IBM), Hewlett Packard Enterprise Co (NYSE:HPE), salesforce.com, inc. (NYSE:CRM), and VMware, Inc. (NYSE:VMW).

There are also a number of lesser-known cloud companies that could do well in 2020.

RingCentral Inc.

RingCentral Inc (NYSE:RNG) is a cloud-based software application company that provides all-in-one phone, team messaging, and video conferencing solutions to businesses around the world. (Source: “Why RingCentral,” RingCentral Inc., last accessed January 7, 2020.)

The company has made a number of strategic acquisitions, including Dimelo, a cloud-based digital customer engagement platform that serves the telecom, financial services, insurance, and retail industries. (Source: “RingCentral Completes Acquisition of Dimelo, a Leading Digital Customer Engagement Platform,” RingCentral Inc, October 24, 2018.)

RingCentral has also entered into an exclusive partnership with Avaya Holdings Corp. The arrangement has RingCentral providing unified communications as a service (UCaaS) solutions and Avaya reselling RingCentral’s services. (Source: “RingCentral to Become Exclusive Provider of UCaaS Solutions to Avaya in Strategic Partnership,” RingCentral Inc, October 3, 2019.)

Upland Software, Inc.

Upland Software Inc (NASDAQ:UPLD) provides cloud-based enterprise work management software to businesses around the world, including many Fortune 2000 companies.

Its customers operate in financial services, retail, technology, manufacturing, consumer goods, media, telecommunications, government, healthcare, and life sciences.

An important part of Upland Software’s growth strategy is to build its family of cloud-based enterprise work management (EWM) applications through strategic acquisitions.

Qualys

Qualys Inc (NASDAQ:QLYS) provides cloud-based security and compliance platform solutions to businesses around the world, including a majority of the Forbes Global 50 and Forbes Global 100. (Source: “About Qualys,” Qualys Inc, last accessed January 7, 2020.)

The company’s scalable business model has resulted in strong and consistent financial performances. (Source: “Investor Presentation,” Qualys Inc, October 30, 2019.)

Continued in “Tech Stock Analysis: Top Tech Trends of 2020; Part 2.