The 20 best tech stocks of 2020
Could one of these technology darlings be the next FAANG stock?
Internet companies have dominated global stock markets in the last decade and none more so than the tech giants of the US.
Although Australia's tech sector is still in its adolescence, we have our own success stories. The WAAAX stocks – Wisetech, Afterpay, Appen, Altium and Xero, have seen extraordinary capital growth in the last five years.
Since 2015, Appen has risen by more than 3,800%, Afterpay by 1,450%, Altium by 660% and Xero by 400%. Among the FAANGs the standout performers have been Amazon and Netflix, rising by 494% and 350% over the same period.
But COVID-19 has given the industry a shake-up. As new digital and lifestyle trends emerge, once little-known technology stocks are stealing the spotlight from the bigger players.
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The rise of WFH stocks
Working from home (WFH) stocks like Zoom, Wix and Slack have seen their stock prices hit new highs since the pandemic began, while cloud Internet security companies are having their moment as companies grapple with out-of-office staff.
The FAANG stocks have also seen a solid rebound since global markets crashed in late February to March, but none appear on the best performing list of the last six months.
Taking the cake at number one in the US is online gambling platform DraftKings (which merged in April with Diamond Eagle Acquisition Corp), followed by everyone's favourite new stock, Zoom Video.
A number of Australian tech stocks have also seen success this year, headed by payment tech companies Afterpay and Pushpay, followed by another betting app PointsBet.
The following is a list of the best performing mid-large cap tech stocks in the US and Australia so far this year (to 10 June). Only stocks with a market cap of more than $1 billion have been included in the list, which is partly why so few ASX stocks are among the best performers.
These are not recommendations, they are intended as investment ideas only.
Best performing tech stocks of 2020
Image source: Getty