Wall Street’s Favorite Tech Stocks? 3 Names That Could Make You Filthy Rich


  • Here are Wall Street’s favorite tech stocks that could make you filthy rich.
  • Reddit (RDDT): The social media company is about to hold its IPO.
  • Amazon (AMZN): A top choice among analysts and hedge funds. 
  • ServiceNow (NOW): A lesser known but equally powerful AI stock. 
favorite tech stocks - Wall Street’s Favorite Tech Stocks? 3 Names That Could Make You Filthy Rich

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Technology stocks abound on Wall Street. There is no shortage of tech stocks new and old. And it’s not just artificial intelligence and semiconductors that investors can take positions in. Software, cybersecurity, cloud computing, financial technology, consumer electronics, streaming, online advertising, cryptocurrency exchanges, social media, and more, are available for the choosing. Among professional analysts and traders, certain technology stocks stand out and are favorites. More often than not, these are tech stocks that have a strong track record of outperformance and have made people rich over the years. Here are Wall Street’s favorite tech stocks? Three names that could make you filthy rich.

Reddit (RDDT)

In this photo illustration the Reddit logo seen displayed on a smartphone and on the background. RDDT and the Reddit IPO
Source: rafapress / Shutterstock.com

Social media company Reddit (NYSE:RDDT) is holding its initial public offering (IPO) on March 21, and it might be smart to take a position in the company early on. Media reports claim that the IPO is four to five times oversubscribed amid strong demand for shares. The oversubscription makes it more likely that Reddit will be able to price its stock between $31 and $34 per share and achieve its target valuation of $6.50 billion.

Reddit is one of the largest technology IPOs of the past two years and is the first social media company to go public since Pinterest (NYSE:PINS) in 2019. Reddit runs online message boards, or forums, that facilitate conversations on topics ranging from politics to recipe exchanges. The company claims to have 73 million daily active users on its platform, and its most popular online forum is WallStreetBets. To the moon?

Amazon (AMZN)

Closeup of the Amazon logo at Amazon campus in Palo Alto, California. The Palo Alto location hosts A9 Search, Amazon Web Services, and Amazon Game Studios teams. AMZN stock
Source: Tada Images / Shutterstock.com

E-commerce giant Amazon (NASDAQ:AMZN) is definitely one of Wall Street’s favorite tech stocks right now. Analysts at Deutsch Bank (NYSE:DB) are one of many to name AMZN stock a top pick, and hedge funds have been buying up shares since the end of last year on expectations of big gains. So far this year, Amazon’s stock has gained 17%, bringing its 12-month increase to 80%.

The raised ratings and hedge fund buys come as AMZN stock has been added to the Dow Jones Industrial Average, a move that’s been applauded up and down Wall Street. Other reasons for being bullish on Amazon include much improved earnings, success in streaming, a new partnership with Eli Lilly (NYSE:LLY) to deliver its red hot weight loss drugs, and an upcoming spring sales event that is highly anticipated among consumers.

ServiceNow (NOW)

ServiceNow office building in Silicon Valley;
Source: Sundry Photography / Shutterstock.com

Software company ServiceNow (NYSE:NOW) continues to be a favorite of both professional investors on Wall Street and retail investors on Main Street. In 2024, NOW stock is up 10%. Over the last year, the company’s share price has risen 75%. Analysts at Oppenheimer (NYSE:OPY) raised their price target on the stock to $800 a share, implying a 6% upside from current, post-earnings levels.

ServiceNow is viewed as a one of the best ways for enterprises software companies to adopt AI. Demand for its AI products has driven ServiceNow’s financial results and share price higher over the last year. The company that specializes in workflow-management reported earnings per share (EPS) of $3.11 for the final quarter of 2023, which beat analyst expectations of $2.78. Revenue of $2.4 billion also beat estimates.

ServiceNow has adopted 15 generative AI tools and is achieving 40% productivity gains as a result.

On the date of publication, Joel Baglole held a long position in LLY. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Joel Baglole has been a business journalist for 20 years. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia.

Article printed from InvestorPlace Media, https://investorplace.com/2024/03/wall-streets-favorite-tech-stocks-3-names-that-could-make-you-filthy-rich/.

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