In recent years, disruptive stocks have taken off. New tech innovations are advancing the pace of change. And that means the door is open for some potentially great investment opportunities.

What Are Disruptive Stocks?

Disruptive stocks go along with disruptive technology. Disruptive, for our purposes according to Oxford Languages, means radical change to an existing industry or market due to technological innovation.

At the Investment U 2021 Conference, Quantitative Expert Nicholas Vardy quoted Clayton Christensen about the disruptive technology theory, saying…

The theory describes the way a new product or service transforms the existing market—and eventually replaces and redefines the status quo—by bringing new simplicity, convenience and affordability.

Chief Investing Strategist Alex Green also spoke about disruptive stocks at the conference. He stated…

Commercial disruption is always positive for consumers. It hurts certain businesses, certain houses, but it’s better for everyone overall.

Who could have predicted the phone, the automobile or the internet? We can’t predict disruption, but we can invest in the disruptive stocks of today. Here’s some of the top disruptive technologies and how you can get in on the action.

Disruptive Stocks and Technologies

Data Analytics

One of the biggest sectors with disruptive stocks is data analytics. Modern enterprises generate a tremendous amount of data as the world switches to online information. Information from data is crucial in giving businesses insights. Despite this, extracting insights from data spread across several applications and infrastructures can be challenging.

Integrating and analyzing siloed data is made easier by data analytics platforms. This provides companies with valuable information. As a result, these companies can take action based on this information.

Palantir Technologies (NYSE: PLTR) is an analytics software provider. The company helps clients integrate and make sense of siloed data sets. In addition, Palantir works with the U.S. intelligence community. It’s software helps U.S. special forces detect roadside bombs and help track terrorists. It also works with numerous other government agencies, including the U.S. Army, Air Force and Coast Guard.

Alteryx (NYSE: AYX) delivers end-to-end analytics solutions to data analytics and scientists globally. The company’s products help make advanced analytics accessible to any data worker. Its Analytic Process Automation (APA) platform helps to automate analytics and data science. In addition, users can embed intelligent decisioning and deliver faster, better outcomes.

Cloud Computing

Another sector known for disruptive stocks is cloud computing. Due to the pandemic and quarantines, companies turned to remote working for employees, a trend that could likely continue in the future.

Cloud computing refers to services delivered on-demand to the customer via the internet. The cloud is an off-site storage center for data. This gets rid of the need for internal infrastructure and hardware.

Salesforce (NYSE: CRM) is a household name in the industry. It was the first cloud-computing company to reach $1 billion in annual revenue in 2009. And after Apple’s 2020 stock split, the Dow Jones rebalanced by adding Salesforce stock alongside Amgen (Nasdaq: AMGN) and Honeywell International (NYSE: HON).

Microsoft (Nasdaq: MSFT) is one of the most well-known names in technology. Founded in 1975 by Bill Gates, this disruptive stock is also considered a blue-chip stock. It does it all from manufacturing and licensing to selling electronics and services. The company’s cloud computing software, Microsoft Azure, is often named one of the top cloud computing services.

Snowflake (NYSE: SNOW) is a leading data warehouse provider. It goes head-to-head with industry giants like Microsoft’s Azure and Alphabet’s (Nasdaq: GOOG) Google Cloud. However, the company has an industry advantage: neutrality. The platform was built on top of public cloud infrastructure. As a result, it can deliver a unified data experience across multiple clouds and regions.

Blockchain

Are you interested in cryptocurrency? Blockchain technology plays a huge part in the crypto game, and that makes it the next technology in our disruptive stocks list. More and more companies are learning how they can use blockchain technology, and the industry is only expected to grow.

IBM (NYSE: IBM) is one of the top blockchain stocks. It’s a leader in the field and offers one of the leading open-source platforms. Companies in industries like healthcare, supply chain and oil and gas already use IBM’s technology. Founded in 1911, IBM is no stranger to adapting to the times.

Square (NYSE: SQ) is another popular disruptive stock. It’s a payment processing company focusing on mobile payments. Familiar with Cash App? These are the guys behind it. In 2018, Square added Bitcoin to its services. It also created Square Crypto, a team dedicated to bitcoin open-source work. Square stock is newer to the market than some of these other names, but it presents a unique investing opportunity.

Electric Vehicles

If you stayed up-to-date on the IPO market in 2020 and 2021, it’s no surprise electric vehicles (EV) are listed as a disruptive stock. It was the year of EV SPAC IPOs, and the industry is here to stay. Moreover, many automakers are turning towards EV manufacturing as the markets show optimism and demand for an eco-friendly option.

Tesla (Nasdaq: TSLA) is one of, if not the most, popular EV stocks on the market. Known for its autonomous driving, futuristic designs and an eccentric founder, Tesla has dominated the market. Although competition is growing, many investors remain bullish on this household name. And investors expect Musk’s other endeavors, such as SpaceX and Starlink, to be as successful.

Nio (NYSE: NIO) is a Chinese EV manufacturer. The company is head-to-head with top Tesla competitor. In November 2020, Nio delivered 5,291 vehicles, up 109% from the year before. In addition, Nio doesn’t only manufacture EVs. Furthermore, it’s also started making progress in battery technology.