Why these lesser-known tech stocks are ready to shine in 2021, says this money manager

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Investors should start digging a little deeper for younger, hungrier tech companies, this money manager says. Because what happens when those bigger tech stocks start to run out of steam?

Stocks look set to start Tuesday’s session slightly lower as we wind our way toward the long holiday weekend. Investors finally have a U.S. stimulus bill, but a new Covid-19 strain in the U.K that could be more contagious, continues to unsettle.

“We’ve gone through different waves of tech, and you look at some of the mega caps in tech right now, and are they really innovating? Not necessarily at this stage. So we are on the lookout for these up and comers that are category killers, that embrace innovation, that bring some sort of competitive technology like artificial intelligence to the table,” Loukas told MarketWatch in an interview.

As for his stock picks, he points to Okta OKTA, +1.37%, an enterprise-grade, identity management service, which can connect anyone with any device and works in the cloud. Cybertechnology company CrowdStrike CRWD, +3.39% is another, and then there is Zscaler ZS, +1.91%, a security platform that connects users and their apps.

In U.S. economic news expect, a revision to third-quarter growth, a consumer confidence index, and existing home sales data. An unredacted draft lawsuit reportedly said technology groups Facebook FB, -1.31% and Alphabet GOOGL, +0.48% have promised to work together if they ever face an antitrust suit over online advertising.

 

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