It’s impossible to know exactly how things will turn out in 2021, but the tech sector will likely continue to fuel the market with profits over the coming decades, as Upwork, PayPal and Zoom have what it takes to be among the big winners of the future.
The global shift towards employment to work from home is still at the beginning, and the economy based on micro-services is now changing the shape of the market for large and small businesses, and Upwork represents an important tool to facilitate keeping pace with and benefiting from this revolutionary wave, as 30% of companies classified according to the 100 Fortune list have used Upwork, which has a market capitalization of nearly $4.5 billion.
Paypal and Square have become major beneficiaries of the growing tech-financial space, and according to research, the economic tech industry’s compound annual growth (CAGR) is expected to reach 24% by 2025.
According to the data of 2020, PayPal’s stock increased by 120%, while Square’s share enjoyed a growth of 260%, and according to statistics for the last quarter, total PayPal payments increased by 38% compared to the same quarter the previous year, while Square’s total payments increased by only 12% during same period.
On the other hand, PayPal’s adjusted earnings per share rose 41%, vastly outpacing Square’s net income growth of just 17%.
Zoom Video Communications Platform:
In conjunction with the huge numbers of companies and schools facing forced closure due to the epidemic, hundreds of millions of people went to the Zoom cloud platform that provides communication tools via video, voice and conversation, which led to a crazy rise in its shares, as the company’s revenues increased by 367% year on year to reach $777 million in the third quarter, its adjusted net revenue increased more than 11-fold to $297 million, and its share price has been quoted 400% higher in 2020 than its previous price.
But in fact, Zoom shares fell 40% from their highest value in October, and some investors say they are concerned about vaccines that may lead to the end of the epidemic crisis, which will be reflected in a decrease in demand for the services provided by Zoom, while some expect the company will reach record numbers in 2021.