5 Best Tech Stocks to Buy in November 2021

US tech stocks have been among the best-performing asset class over the last decade. The sector continued to rally in 2020 despite the COVID-19 pandemic.

Meanwhile, some of the tech stocks have come off their highs and look attractive. While there are concerns over slowing growth, and the monetary policy tightening by the Federal Reserve, the sector still has good investment opportunities. Here are the five best tech stocks that you can buy in November 2021.

1. NIO (NYSE: NIO)

The universe for tech stocks is quite broad and EV (electric vehicle) names are also considered tech stocks. NIO stock has been weak this year and is the worst-performing Chinese EV stock. The company released its earnings earlier this week which were a mixed bag. While its earnings were better than expected, its guidance was below what analysts were expecting.

The company expects to deliver between 23,500-25,500 vehicles in the fourth quarter. It expects to generate revenues between $1.45 billion $1.56 billion in the fourth quarter. In the earnings release, Li said “Despite the continued supply chain volatilities, our teams and partners are working closely together to secure the supply and production for the fourth quarter of 2021.”

Wall Street analysts are bullish on NIO

Wall Street analysts are bullish on NIO stock. Today, Citi raised its target price on NIO from $70 to $87. “Given their strong product offerings, we expect local brands to retain 65%+ market share in China NEV (new energy vehicles) sales in 2022-25E despite increased competition from the continued expansion of Tesla and other foreign brands, which began to grow their electric vehicle divisions in recent years. We expect NIO to gain market share against this backdrop,” it said in its note.

If you are looking at an EV stock with strong tech capabilities, NIO should be on your radar. After the recent underperformance, NIO stock looks attractively valued as compared to some of the other EV stocks.

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2. SoFi (NYSE: SOFI)

SoFi is a play on the digitization of the financial services industry. Fintech names are also tech stocks and within the industry, SoFi looks an attractive bet. SoFi added 377,000 new members in the third quarter which was the second-highest quarterly member growth in its history. While a lot of growth names have been witnessing a slowdown, SoFi’s growth outlook has been largely intact. If anything, the lifting of the moratorium on student loans would help it increase the revenues even further.

SoFi is a good tech stock in the financial services industry

One of the key USP of SoFi’s fintech platform is the massive cross-sell opportunities. During the third quarter, SoFi witnessed an all-time high cross-buying of products by existing customers. It said that SoFi Money, SoFi Invest, and SoFi Credit Card were responsible for 73% of cross-buying opportunities.

SoFi’s long-term forecast looks positive as fintech companies continue to snatch market share from traditional banks. The company is a financial services powerhouse having multiple products under its fold which brings attractive cross-sell opportunities.

Overall, SoFi looks among the best tech stocks to buy in the financial services industry. The stock’s valuations also look reasonable as compared to some of the other fintech companies.

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3. Amazon (NYSE: AMZN)

Amazon is the worst-performing FAANG stock of 2021. While analysts are overwhelmingly bullish on AMZN stock, the price action has disappointed so far. The company has missed revenue estimates for the last two quarters, which is a rarity for the company. Its fourth-quarter guidance on both revenues and operating profits spooked investors and pointed to slowing growth and rising costs.

Amazon is among the best tech stocks to play cloud and e-commerce

Earlier this month, Guggenheim reiterated Amazon stock as a buy. It said “Looking to Q4, we would anticipate that these costs will approach $4 billion in Q4 as Amazon sees a full quarter’s impact of these effects and a higher seasonal unit volume. We see this continuing to pressure Amazon in coming quarters. Global supply chain disruptions have also raised Amazon’s cost of operations, and we expect this pressure to also continue.”

AMZN looks like a good tech stock to buy for the long term and the recent weakness looks like a buying opportunity. The company has a strong market-leading position in both cloud and e-commerce which makes it a must-have tech stock. The company is witnessing a growth slowdown, partially due to the high base year effect. However, the long-term growth trajectory for the company looks positive.

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4. Uber (NYSE: UBER)

Ride-hailing and food delivery company Uber is another good tech stock to buy in November. The company has taken several measures to address its perennial losses and has exited some of the non-core markets, for instance, the food delivery market in India. It has also exited businesses like autonomous driving and flying taxi businesses.

Uber is a good reopening tech stock

Many of the US tech stocks would see a tapering down of their topline growth as the economies reopen. However, Uber’s ride-hailing business would benefit from the reopening. Mark Mahaney, Evercore ISI’s head of Internet Research sees Uber as a top tech stock to buy.

The company has recently increased the prices in the UK to attract more drivers. However, the company faces the risk of the categorization of its contractors. Several jurisdictions have been asking the companies in gig economy to classify the workers as employees instead of independent contractors.

However, that’s more of an industry-specific risk. Overall, if you are looking at a tech stock to play the reopening, Uber would fit the bill.

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5. DiDi (NYSE: DIDI)

Staying within the ride-hailing industry, DiDi looks like another good tech stock to buy. The stock has had a dismal run as a publicly-traded company amid the crackdown in China. However, reportedly things are getting back on track for the company and it plans to relaunch the app in China to address the concerns raised by the government.

DiDi is a high-risk tech stock

Overall, DiDi looks like a good tech stock even as it is riskier. However, if the company manages to come out of the regulatory crisis with minimal damage, it could rise sharply from these levels.

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