Despite a global epidemic, the year 2020 was a good one for the IT stock market. They outperformed the market as a whole, which was up about 40% in the preceding calendar year. Even though no one can promise that these stocks will perform similarly this year, they do represent a terrific opportunity for any interested investor.
Why? Some of the causes of this phenomenon include but are not limited to, the rapid digitalization of retail, new communication and entertainment alternatives, and the pandemic’s rapid pace. After that, let’s look at some of the most promising technology advances to invest in this year.
Virtual reality (VR)
Not long ago, virtual reality (VR) technology was hailed as the “next big thing.” Despite its attractive design, the technology has fallen short of expectations. The expensive cost of headsets, along with a lack of suitable material, has contributed to a decline in interest. However, a huge number of firms have decided to keep focusing on VR and are making substantial progress in its development. They have never had a better chance to capitalize on this opportunity than they have now.
This is especially true because professionals from a wide range of professions are thinking of new ways to incorporate VR into their operations. Real estate agents, for example, are now using this technology to deliver virtual tours of the properties they represent to their clients. Similarly, virtual reality (VR) is increasingly being integrated into a wide range of other fields, including education, industrial manufacturing, and many more. Oculus has been at the forefront of the virtual reality (VR) business since Facebook acquired it in 2014. They intend to work toward improving their VR experience in 2021, putting them ahead of the competition. Qualcomm, Snap, and Sony Corporation are some other firms whose stock should be considered.
The cloud computing environment
Throughout the majority of the last decade, the use of cloud storage has grown in popularity. Technology has had an impact on both individual users and large companies. It’s just that having access to your files whenever and wherever you want simplifies things. As a result of the epidemic, industry expansion is expected to continue beyond 2021. Cloud storage will account for 14 percent of all IT investments by 2024. This is a significant increase over the earlier prediction of 9% in 2020.
This trend will affect all organizations functioning in this field, with some of them looking to be the most successful overall. There are plenty, and Dropbox is unquestionably one of them. In just one year, the company’s paying clients increased from 14 million to 15.25 million. The total user population is 600 million people scattered across 180 countries. Dropbox will perform well despite being in a highly competitive industry; consequently, it is a choice that should be considered when investing in technology stocks.
Environmentally friendly technology
The industry of environmentally friendly technologies has been demonstrating a pattern of remarkable growth for quite some time. The entire globe has concluded that going green is critical, and new environmentally friendly technology is constantly being produced. For firms in environmentally aware industries, the year 2020 was fruitful. We were able to see substantial breakthroughs in the field of electric vehicles thanks to Tesla and Workhorse.
Furthermore, organizations with the main focus on battery supply chains and renewable energy assets have made tremendous strides in recent years. By 2021, the industry will be an even more desirable sector in which to invest. There are still certain issues with environmentally friendly technology, and investors should be aware of them. Green energy is being sold back to the grid, although it is exceedingly difficult to return more than 10% of capacity to it. This year, your greatest choice for a risk-free investment in environmentally friendly technology is to put your money into software solutions that can advance existing green technologies.
Online casino software
People who enjoy gambling have been flocking to playing their games online for some time now. This is because they find it more convenient to gamble online than than visiting land-based casinos. The pandemic has accelerated this migration, and as a result, there are now more people gambling at online casinos than ever before. The entire iGaming industry had a fantastic year in 2020, and there’s no reason to think that won’t continue this year. You’d be mistaken if you thought that was all there was to it; there’s more.
The fact that there are now more enterprises in the sector is just one of several changes that have occurred in recent years. The increased participation in online gambling has prompted service providers in this business to improve their offers in a variety of ways. For example, they are continually attempting to improve the gambling software that they use to provide their customers with a better experience. Similarly, we were able to see the development of brand new slot machines and other online casino games. Customers might continue to bet online even after traditional casinos resume normal operations. As a result, many investors have found online casino software stocks to be an interesting investment possibility.
Medicine-related software
We talked about the COVID-19 epidemic earlier, and we’ll need to talk about it again. The year 2020 made us realize how important it is to find solutions to the difficulties of sanitation and medical care. A considerable amount of these challenges can be resolved with carefully developed software. Consider the recently released program Healthily, which allows users to provide for themselves during the epidemic.
It can help you find reliable and easy-to-understand health information in instances like this. Digital healthcare will continue to be the main focus in 2021. The efforts of emerging enterprises to create technical solutions to these difficulties would tremendously assist the health care and hygiene industries. Even if the epidemic is far from over, it appears that now is an excellent moment to invest in medical software startup stocks. Because an increasing number of people are becoming more health conscious and doing everything they can to maintain a healthy lifestyle, the market for wearable medical devices will continue to rise.
Finish up
The previous year was without a doubt one of the strongest in human history. This has had an impact on the investment industry in a variety of ways. Some sectors of the technology industry have continued to impress, while others have seemingly arisen out of nowhere. If you want to buy technology stocks in 2021, you should consider the five options presented in this article.