2020 has been another strong year for U.S. stocks overall, and with fiscal stimulus, loose monetary policy and the introduction of vaccines helping to alleviate concerns over the coronavirus health crisis, all of Wall Street’s leading indices are set to conclude the year with surprisingly strong gains.
The technology-heavy NASDAQ Composite rose 43% since the beginning of the year, while the benchmark S&P 500 climbed 15.4% and the Dow 30 increased 6%.
While there are still many reasons to worry about the stock market in 2021, the three proven names below will likely continue to offer impressive returns to their shareholders in the coming year.
Apple (NASDAQ: AAPL) shares rose tremendously in 2020, and they are in a good position to continue this rise in 2021. The iPhone manufacturer’s share, which gained nearly 84% this year, is preparing to close the year at a level close to its historical high.
Starting 2020 at $ 74.06, the AAPL stock closed the day at $ 134.87 after reaching a new historic high of $ 138.78 on Tuesday.
Cupertino, California-based technology giant, which made a one-to-one share split in August, is the most valuable company traded on the US stock exchange with a market value of $ 2.27 trillion.
What was behind the stock rally in 2020? It marks the explosion in demand for the new iPhone 12 models, which the company launched in October and quickly became the world’s best-selling 5G-enabled smartphone.
Additionally, the expansion of wearable device segments such as AirPods and Apple Watch as well as subscription-based services such as iTunes Music, Apple TV + and Apple Arcade have also encouraged Wall Street.
Looking at 2021, Apple is expected to continue its momentum thanks to strong iPhone sales. According to reports, the company plans to increase its smartphone production by 20-30% in the next year.
The tech and consumer products giant will also support an increase in speculation that it plans to produce an electric vehicle by 2024.
Taking all this into consideration, we expect Apple stock to continue its strong uptrend over the next 12 months.
Considered by many as one of the biggest winners of 2019, Shopify (NYSE: SHOP) stock also made huge gains in 2020. As the e-commerce software platform saw an above-average activity during the coronavirus crisis, the shares gained close to 195%.
Starting the year at $ 403.99, the SHOP reached a historic high of $ 1,285.00 on December 22. With the share closing yesterday at $ 1,171.61, the Ottawa-based e-commerce company has a market value of about $ 136.7 billion.
The Canadian-based company, which helps sellers open their own stores and manage their brands on the Internet, was able to easily surpass Wall Street’s profit and sales expectations by posting positive surprises for all quarters of this year.
Revenue increased by 82% in the first nine months of 2020 compared to the same period last year, a sign of how well Shopify performed during the epidemic.
Additionally, total transaction volume (GMV), an important metric used to measure transaction volumes in the e-commerce industry, rose 46% in the first quarter, 119% in the second quarter and 109% in the third quarter.
With consumers largely shopping online during the COVID-19 pandemic, we expect the positive trend in Shopify to continue in the new year thanks to the company’s status as one of the leading names in the e-commerce industry.
Shares of the content delivery network and web security company Cloudflare (NYSE: NET) rose by a full 347% in 2020 to mark the market.
The San Francisco, California-based technology company benefited from the strong demand for cloud-based network and cyber security services, with the leap in internet traffic during the epidemic.
Net stock started the year at $ 17.24 and reached a record high of $ 88.75 on December 22. The stock, which closed yesterday at $ 76.40, gave a market value of $ 22.6 billion to the cloud network and security solutions company.
Cloudflare surpassed revenue and profit expectations in all of this year’s quarterly reports, reflecting growth in demand for web security, content delivery, and enterprise network services and solutions.
The company stated that by the end of the third quarter, it had over 3.2 million customers, of which more than 100 thousand paid customers. Even more impressive is the number of large customers who spend at least $ 100,000 a year to 736. The company also earned its first $ 10 million annual customer in its history.
Despite its dramatic rise this year, we expect Cloudflare stock to continue its impressive performance in 2021, thanks to the fact that it is one of the leading names in the rapidly growing cloud computing industry.