3 Tech Stocks That Can Soar Despite Inflation
Inflation has picked up pace this year as effects from the pandemic ease and pent-up consumer demand for certain goods and services gets unleashed. For the record, a little inflation is indicative of a healthy or rebounding economy, so there's no need to panic just yet. But if higher inflation is a more prolonged problem, having some money stashed away in some stocks that can still thrive will be a good move. Three that are worth a look right now are PayPal (NASDAQ: PYPL), Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG), and Micron Technology (NASDAQ: MU).
Nicholas Rossolillo (PayPal): I started loading up on digital payments stocks early this year in anticipation of higher consumer spending, and I'm still a buyer now that money is flowing through the economy again at a fast pace and causing some spikes in prices. In fact, as long as higher pricing doesn't continue to rise unabated for years, a little inflation would actually be a positive for payment processors like PayPal.
The reason is the digital payments space collects a percentage fee for processing a transaction. If average transaction values increase, the fees paid to companies like PayPal increase as well. Added to the strong and steady growth already expected this year, this could set up PayPal shares for continued success where other stocks might stumble in such an inflationary environment.
Source Fool.com
