MGK - 3 Top Mega-Cap Stocks to Own in 2021
Who says mega-cap stocks -- those with a valuation of over $200 billion -- can't provide huge returns? The Vanguard Mega-Cap Growth ETF (NYSEMKT: MGK) increased 40% in 2020 due to its slant toward technology. With the world hastened into a new digital age because of the pandemic, 2021 could be another great year for big tech stocks. Three Fool.com contributors think salesforce.com (NYSE: CRM) , Intel (NASDAQ: INTC) , and Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) will be well worth your while.
Nicholas Rossolillo (Salesforce): Shares of cloud computing pioneer Salesforce were up over 60% at one point in 2020 as the company continued to grow even though many of its customers have been deeply impacted by the pandemic. Far from the days when this was a niche developer of customer relationship management software, Salesforce has become an integral part of daily operations for a growing list of organizations around the world.
Not surprisingly, returns moderated and the stock will finish out 2020 up "only" 37% on the year. What I do find surprising is how negative some investors have gotten on the company after its announced intention to acquire work collaboration tool Slack (NYSE: WORK) . Salesforce is highly acquisitive, and CEO Marc Benioff and company often use its soaring stock price as a type of currency to acquire other high-growth technology names. Slack is no exception here, with about 40% of the deal to be funded with Salesforce stock . And while many investors aren't comfortable with acquisitions, Salesforce has a history of making deals like this work -- bolting on other software services to its core customer relationship platform to enhance its offering.
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3 Top Mega-Cap Stocks to Own in 2021