The continuation of the COVID-19 pandemic should keep technology trends going next year. That is in part why J.P. Morgan is bullish on tech stocks Uber (UBER), Spotify (NYSE:SPOT), and Twitter (NYSE:TWTR), which possess strong profitability and reasonable valuation. Let’s discuss.With continuing digitization worldwide and advancements in the tech space, experts predict that tech trends will dominate the industry next year. As a corollary to that, as companies across industries invest significantly in tech upgrades, the tech industry should continue to thrive.
According to the J.P. Morgan analyst Doug Anmuth, e-commerce and subscription-based names are preferable to online advertising, given a reacceleration of growth, and "an overall more favorable operating environment." Also, the analyst prefers companies with "strong profitability & reasonable valuation given the rising interest rate environment.”
The investment bank is bullish about Uber Technologies, Inc. (NYSE:UBER), Spotify Technology S.A. (SPOT), and Twitter, Inc. (TWTR). Therefore, we think these stocks could be good additions to your watchlist.