Goldman Sachs analysts continue to track the strong growth of US technology companies. CNBC wrote that the following is a list of technology stocks that are buying in the fall.
Analyst Kash Rangan wrote: “We have gradually increased expectations for the software industry at the beginning of the fall.” He pointed out that the demand for different types of software services has increased.
Part of the reason is the increasing demand for new digital solutions, and part of the reason is that the profit margins of e-commerce are growing. On the Nasdaq Stock Exchange, software stocks recorded an average increase in the first half of the year.
Top three
Goldman Sachs predicts that the gains of the three technology stocks will be particularly large. They are Microsoft, Salesforce, and ServiceNow.
Microsoft
Microsoft is in a good position in the stock market with its cloud services (including Office 265 and LinkedIn). The company will increase the price of its Office 365 licenses, which will increase profitability. “Microsoft stands out in the tech world through its strong influence in all cloud service layers,” Goldman Sachs wrote. The bank believes that profits will grow by 14% in the next three years and revenue will grow by 17%.
Sales force
SalesForce is a company that will profit from the e-commerce growth predicted by Goldman Sachs.
The bank wrote: “The company has established a strategic and strong product portfolio covering sales, marketing, e-commerce, analytics, artificial intelligence, customer applications, integration and collaboration services.”
The company was particularly anxious after acquiring the messaging app Slack.
Serve immediately
ServiceNow is a company that provides IT support and is emphasized as a promise. Analysts said that the company may have a very large potential market. Goldman Sachs expects sales of $175 billion in 2024.
Five other important shares
Working dayThose who make human resource software will benefit from the online personnel management system and other routine procedures. Goldmans Sachs predicts that stocks will rise sharply. As more and more people are vaccinated, the bank believes that companies will begin to dare to invest in such systems to a greater extent than before.
on MondayIt is another work management software that is the market leader in its market segment and will “make full use of the increasing demand for collaboration tools and increased productivity in the workplace.
AdobeThe software giant will benefit from digital transformation and has developed Acrobat and Document Cloud.
Goldman Sachs also pointed out that the percentage of subscription renewals has increased since before the pandemic. The analyst wrote: “The unparalleled growth rate that underpins the digital transformation of the digital experience industry, the continuous transition from paper to digital document management, and the ever-increasing content production make us believe in its potential.”
SnowflakeThe data warehouse also got a buying model from Goldman Sachs. The company has “strong competitive positioning”, “first-class growth” and new customers-as many as 42% of the most important companies on the Fortune 500 list. Cloud-based software services continue to replace other technologies, making Snowflake hot.
Zoom information It is a company that helps marketing teams reach customers (not to be confused with the company behind the conference app Zoom Video). It was one of the first companies to go public after the outbreak of the coronavirus pandemic. The company’s operating profit margin exceeded 40%, with a year-on-year growth of 57% in the second quarter.
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