On today’s episode of Full Court Finance at Zacks we explore the market’s bullish outlook for 2021. The episode then dives into
Apple
AAPL
and
Microsoft
MSFT
to see if investors should consider buying either of the tech titans as we get closer to 2021.
Stocks fell early on Monday morning amid news that countries were racing to ban travel from the U.K. The moves are being made in an effort to prevent a highly infectious new strain of the coronavirus from spreading across more of Europe. But the downturn improved by mid-day.
The reason for the comeback likely stems from broader positivity as we head into 2021. Last week, healthcare workers in the U.S. began to receive Pfizer’s Covid-19 vaccine, and the FDA advisory panel recommended that Moderna’s vaccine be cleared for broad use. And federal officials expect that around 100 million Americans will get vaccinated by February or March.
Meanwhile, the second stimulus bill is ready for a final vote in Congress. This could prove key as many of the hardest-hit areas of the economy face a harsh winter, with another round of restrictions. Alongside the vaccine progress and another likely round of coronavirus aid, the earnings picture and interest rate environment both help further set up a bullish picture for 2021.
Despite the positivity, it might not be the best idea to dive into stocks that require tons of person-to-person contact just yet. And even though beaten-down spaces and cyclicals have made a comeback recently, technology is set to dominate the market and our lives.
With this in mind, we explore why investors might want to consider Apple and Microsoft stock as they rest below their highs.
The iPhone giant is poised to continue to grow its high-end consumer tech segment. Plus, its services unit that helps it compete against Netflix
NFLX
, Spotify
SPOT
, and others has amassed hundreds of millions of paid subscribers. And that’s just the start.
Microsoft stock jumped roughly 2% on Monday amid the broader downturn. The climb came after Citigroup analysts provided one of the most bullish MSFT targets on Wall Street. The call focused on the company’s growing cloud business that’s ready to help it expand for years alongside Amazon
AMZN
and others.
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