3 top tech stocks to watch in May

Moving into May, there are more than a few positive things to look forward to, namely the better weather and vaccinations. Whilst the stock market has had a rocky couple of months, these three companies could be good options for investments in May as the market recovers from its recent volatility.  

This article was originally written by MyWallSt. Read more market-beating insights from the MyWallSt team here.

Snap Inc. 

Snap Inc. (NYSE: SNAP) is most well known as the parent company of Snapchat, the friendly, yellow-colored social media giant. But this company as a whole has done particularly well during the pandemic and is likely to carry its momentum into the future. With plans to drive further growth, it is looking to invest in new opportunities such as e-commerce as well as pushing forward with its AR technology. 

Currently, Snapchat has an average revenue per user (ARPU) of $3.44. However, it is still showcasing large revenue growth overall, with a 62% increase year-over-year (YoY) to $911 million in its most recent quarter. Although its ARPU is low in comparison to Facebook’s huge $32 per user, Snap has in fact increased this number 33% over the last year. Furthermore, growth is expected to continue as the company has signed deals with the New York Times, NYX Professional Makeup, as well as Ralph Lauren to launch augmented reality advertising campaigns. 

2020 was Snap’s first year of profitability with hopes that it will be the first of many. Its range of Snap Games integrated into its live multiplayer platform, its ‘Discover’ channel, as well as its AR features, will keep the company moving forward. Indeed, Snapchat’s popularity increased 22% during the last quarter with active users sitting at 265 million.

Apple

Apple’s (NASDAQ: AAPL) stock has taken a bit of a beating this year, experiencing lows of $116 per share. However, as Apple has easily recovered its value, now might be the time to buy before it continues increasing on the back of its most recent report.

Apple has had immediate success with its range of 5G iPhones and it remains at the top of the list of the most popular smartphones. The iPhone 12 in particular was in such high demand that it is outpaced supplies in the latter months of 2020. Now with its announcement of 5G coming to the new iPad model, consumers will have a wider range of devices that will help facilitate the higher demands of content consumption that the pandemic has encouraged. 

Furthermore, Apple is all about keeping you and your devices safe, which is an intelligent move as concerns surround data privacy and cybersecurity are mounting. With its new iOS update limiting the information that app owners can access outside of their app on your phone, big companies such as Facebook might find their ad revenue affected by this new update. 

Apple is going to continue doing what it does best, bringing out new products, such as its highly anticipated AirTag, and improve its old ones, keeping up to date with current technology trends. This company is one that all savvy investors should have in their portfolio, and with its recent quarterly report, it is one to buy again. 

PayPal

The two top names in the world of payment apps and P2P financial solutions are Square and PayPal (NASDAQ: PYPL). And whilst Square is also a good option right now, its competitor PayPal has recently given its mobile app, Venmo, an update that allows the buying, selling, and holding of several cryptocurrencies in its app. This update will certainly encourage crypto enthusiasts and novices alike to try out its new update for just $1. 

But beyond the crypto trend, PayPal reported 73 million net new active consumers throughout 2020. By the end of the year, it had 29 million merchants and 350 million consumers using its PayPal service alone. Forecasts state that another 50 million net new active accounts will be added again throughout 2021. 

What’s more, as the economy is likely to get a stimulating boost this summer, so too will PayPal. As the high streets re-open, more and more people will use the Venmo app to move their cash around and pay for things in brick-and-mortar stores. PayPal is the main leader in the digital banking revolution and anyone buying the stock now can just sit back and watch as the company continues to grow over the next few years.

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