Top stocks to watch in September 2021

Our top stock picks for September 2021, a mix of companies that have benefited from the pandemic and a stock with huge ambition which has recently started to hit success.
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4 min read
Numbers

Over the course of the pandemic, many businesses have had to adapt to the online marketplace and customer behaviour has changed: some people are spending more money online since they are spending less in other areas and people are spending more time entertaining themselves online, be it with gaming, streaming shows or movies.

Here we have picked out some great stocks to watch for September 2021. It includes a mix of companies that have benefited from the pandemic and have lots of potential but also one company in particular with huge ambition which has recently started to prove their business is possible.

Shopify

Since even before COVID-19, Shopify has been doing really well and during the pandemic, businesses have turned to online sales, many of which turned to use Shopify. This company has embedded itself as a gold standard for e-commerce since they make it incredibly easy for businesses to start selling online by providing payment processing, website hosting, stock management, customer management and more. Shopify is an all in one solution for selling online.

There are no doubt businesses will continue to push online sales even further from now on. Before the pandemic online shopping was already the go-to choice for many and as time goes on we can see even more businesses turning to online sales, perhaps even going online only. Shopify is likely to be the platform many of these businesses use, if they don’t already use it that is.

  • Over 1.7 million businesses are on the platform.
  • Q2 revenue: $1.12 billion, up 57% year on year.
  • Q2 profit: $879.1 million.

Activision Blizzard

It is no secret that gaming is a huge industry. It is also quite fair to say Blizzard is one of the biggest names in gaming: they are the creators of the hugely popular MMO known as World Of Warcraft.

Recently Blizzard has had some really bad press around a toxic work culture. However, it is more than likely that this issue will eventually be cleared up and Blizzard will come out stronger.

World Of Warcraft is the biggest income generator for Blizzard. The game is only playable for users who pay the subscription fee. For this reason, WoW brings in way more income than any single charge game and the best part is: the income is recurring. Blizzard doesn’t only have World Of Warcraft though – they have many other games such as the massive hit Overwatch.

Gaming is still a growing industry and it’s also possible due to the pandemic that more people than ever are playing games and spending more time gaming also.

We would say Blizzard is well-positioned to continue their leading position in gaming. Any issues they currently may face will no doubt be overcome and the company can build back better.

  • 408 million active monthly users.
  • Q2 net income: $876 million.
  • Q2 revenue: $2.3 billion.

Virgin Galactic

This stock has gained lots of attention so far this year, with a good reason for it too. Virgin Galactic is aiming to make space tourism a reality: they carry out short trips to space that anyone can embark on (providing you can pay).

Recently they had a successful flight with Sir Richard Branson on board, everything went to plan and the company proved it is capable of taking ordinary passengers to space. However, since the successful flight, the stock price of Virgin Galactic has dropped dramatically.

In May 2021 the stock dropped just below $16, which is the lowest price the stock has dropped to so far this year. Before the flight in July, the price peaked at just below $56. Currently, the price is around $25.

It would seem one reason for the stock dropping in value was due to the annoument that Virgin Galactic would be selling up to $500 million of stock, just the day after the successful flight. This caused the stock to drop 14%.

It is easy to see that Virgin Galactic is currently priced well below the all-time high which it only recently hit. It is no secret that Virgin Galactic has a very ambitious mission and a very long road ahead, however, we do know that space travel is slowly on its way to becoming more normal. If Virgin Galactic can pull off its company mission, while keeping customers interested and eventually reduce the cost of tickets, then it is quite easy to say Virgin Galactic is a good value stock to buy currently (for long term holding).

  • Ticket prices currently start at $450,000 per seat.
  • Loss of $56 million in Q2.
  • $571,000 revenue in Q2.

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