The UK leaving the EU doesn't change the fundamental picture for these stocks
Well, the so-called “Brexit” vote is in and the “Leave” vote was the surprising winner. That means the UK leaves the European Union and the markets have been a mess. And they will continue to be a mess until everyone can figure out what the implications are now.
Source: magicatwork via Flickr
The current government will resign, which will bring a melee of hopeful candidates. The Bank of England will have to boost liquidity, just to keep the markets functioning as normally as possible. But from there, it’s anyone’s guess how this unfolds.
This is a great example of the difference between a trader and an investor. Right now, traders see huge opportunities. Investors look for the stability to ride out this newest twist in the road to recovery.
Here are seven of the best-of-the-best tech stocks that will continue to endure as the markets have their fits and starts over “Brexit.” They are all great investments — and they’ll be even cheaper in coming days.
Look at any downside price movements as great entry points, not signs of danger.
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Tech Stocks to Buy: Facebook Inc (FB)
Industry: Social Media
Facebook (FB) is usually front and center when it comes to a list of top tech stocks. Much of the reason is this social media giant has an enormous base of monthly users. At last count, more than 1.65 billion of them. And its newest platform for the younger demographic, Instagram, just passed the 500 million mark. That’s 25% growth since last September.
But the most compelling statistic is the fact that of the FB users, 54% only access the site on their mobile devices.
You see, mobile advertising is where technology is heading. Alphabet Inc (GOOGL, GOOG) already dominates the market. Facebook is hot on its trail. And now that FB has billions of users across a number of platforms, it can deploy mobile advertising in segmented, targeted ways that few other companies can match.
To that end, Instagram just announced it will be adding automatic in-message translation to the service. Now, not even language is a barrier to the social media juggernaut.
Tech Stocks to Buy: NetGear, Inc. (NTGR)
Industry: Broadcasting Equipment
NetGear (NTGR) is up 17% in the past three months and has beaten earnings expectations for the past four straight quarters (through Q1 2016). It’s no wonder the stock is at 52-week highs.
But the point is, while the economy has been waffling, NTGR has been soaring. And much of the boost comes from the consumer side of the business, which flies in the face of what other retail sectors are experiencing.
A large amount of NTGR growth comes from the Americas and Asia. Both regions are continuing to “get wired” or upgrade to newer, faster systems. Both regions are also fairly stable right now, so continued growth is attainable.
Another bonus to NTGR is its integrated product line. Because it has built out a platform that provides, security, high-speed WiFi, cloud storage and even mobile WiFi, it’s very easy to plug and play the various components. Consumers like easy when it comes to tech and NTGR has been working on precisely that.
Tech Stocks to Buy: MeetMe Inc (MEET)
Industry: Social Media
MeetMe (MEET) is a company born in a post-Facebook world. It’s a social media — or as the company describes it, a social discovery site that is used almost entirely on mobile devices.
This is the hot market for advertisers and to build out a successful platform on mobile that combines the millennial demographic with a relationship app means big potential.
According to quantcast, MEET has 3.2 million users, 45% of which (1.3 million) live in the U.S. But the site is available in more than 11 languages, so the potential to grow this business is a global proposition.
It’s in the right niche at the right time. And its latest quarterly numbers prove that: mobile revenue up 42%; total revenue up 15%; net income increased 226%.
Right now, MEET has around a $230 million market cap. It’s up 65% in the past three months. This company is growing and other bigger firms are taking notice. MEET has the potential to get acquired at a huge premium by a bigger player looking to get into this space.
Tech Stocks to Buy: Planet Payment Inc (PLPM)
Industry: Payment Services
Planet Payment (PLPM) is a small fish in a very lucrative pond. It provides global payment solutions to merchants and banks (118,000 of them) in 21 countries around the world.
It used to be that merchants really had little choice who the wanted to handle their transactions, Visa Inc (V) or MasterCard Inc (MA), or both. Then Paypal Holdings Inc (PYPL) revolutionized the payment processing space and upgraded to the digital age.
That has allowed an opening for PLPM and companies like it.
There’s no doubt that PLPM is not going to breathing down the neck of PYPL or V any time soon — its market cap is a mere $220 million compared to PYPL’s $44 billion or V’s $184 billion.
But as long as it continues to grow, it means the big fish in this pond will be more and more interested in eating PLPM. That’s why it’s no surprise PLPM is up 50% in the past six months. And even after this rise, some analysts are giving it a 2016 price target 20% higher than it is now.
Tech Stocks to Buy: Norsat International Inc (USA) (NSAT)
Industry: Communication Equipment
Norsat International (NSAT) is a communications company that provides specialized equipment for remote and challenging applications.
Basically, that means NSAT sells a lot of its equipment to the military. Remote usually means the open sea or a valley in Afghanistan.
Given the modernization and automation of the military, reliable communications equipment is crucial. For example, a drone flying over a disputed area has to relay information (video, etc) to the boots on the ground, the command base that may be thousands of miles away, the CIA, and say, a warship sitting just offshore.
All these signals have to be secure and reliable. Any kind of failure puts the entire operation — and people’s lives — at risk.
The point is, NSAT has found a niche. And since it’s been around since 1977, it is very good at what it does. It has a market cap of a mere $38 million, yet it’s surrounded by massive defense contractors and remains a viable player. That’s rare. And it’s worth your attention.
Tech Stocks to Buy: Nvidia Corporation (NVDA)
Industry: Semiconductors
Nvidia Corporation (NVDA) is in one of the most explosive sectors in the tech world — graphic chips and processors.
If you’ve played a video game recently or seen an ad for one, you have noticed that video games these days are incredibly detailed and move like reality. This wouldn’t be possible without graphic chip sets. And Nvidia makes the best in the market.
Gamers seek out machines with high-end NVDA chips already installed or buy top-of-the-line Nvidia graphics cards to slot their PC with.
But it doesn’t end there. Now, as we progress in the digital age, we’re connected everywhere. Surgeons can operate remotely, mapping systems and other onboard systems in modern cars are now graphics dependent. Also, self-driving cars is going to be another area where NVDA will be sought out.
For a while, there were concerns that NVDA was going to lose business to other chipmakers with broader portfolios. But that hasn’t panned out and now NVDA is getting the credit it deserves. The stock is up 121% in the past year with plenty of headroom.
Tech Stocks to Buy: Adobe Systems Incorporated (ADBE)
Industry: Software
Adobe (ADBE) is an online content management titan. Saying “pdf” for a picture or a document is almost as common as saying “Xerox” for making a copy, or “Kleenex” for a tissue. Photoshop has become synonymous with manipulating a digital image. Both are Adobe products.
The point is, ADBE is an integral part of the way we interface with all the technology we manage today. It’s current array of software and tools continue to find new and renewing customers. It released earnings for Q2 this week and beat estimates on the earnings and revenue front. Revenue was up 20% compared to the same quarter last year.
But ADBE lowered guidance for the year and that scared analysts. But their fear is our gain. After moving up 20% in the past year, you can buy in at a discount.
There’s a lot to like about ADBE and a lot to look forward to, especially some of the major strides it’s making in 3D printing (aka rapid prototyping).
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