The Best UK Tech Stocks to Watch
When people think of technology stocks, their mind inevitably turns to US titans of the industry, such as Apple, Microsoft and Amazon. However, on the other side of the Atlantic, London is home to many promising UK tech stocks.
Whilst even the largest UK tech companies may not match the enormity of their US counterparts, it is a British industry which has grown and flourished in recent years. In this article, we will take a look at 2 UK technology stocks to watch in 2024.
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UK Tech Stocks to Watch
The UK technology sector has expanded considerably in recent years and there are now a number of top UK tech companies listed on the London Stock Exchange (LSE).
In the following sections, we will take a look at 2 top UK tech stocks which have attracted considerable attention since their stock market bows.
Wise
Formally known as TransferWise, Wise is a financial services company which specialises in international money transfers. It also allows accountholders to hold their money in 40 different currencies or invest it in a global index fund.
However, despite the name change, Wise’s core business remains international transfers. As well as offering these transfers at a more competitive rate than high street banks, they claim to be 5 times cheaper on average, many of their transfers are considerably quicker as well.
Their services have proved popular, with more than 16 million customers around the world transferring an average of around £9 billion a month across borders.
The international remittance market is incredibly big business, with many migrant workers regularly transferring money back to family members in their native country. In 2022, remittances to low and middle-income countries totalled an estimated $626 billion.
In the year ended 31 March 2023, Wise handled a total volume of £104.5 billion worth of cross-border transfers, an increase of 37% year on year. This increase in transfer volume coupled with considerably higher net interest income helped drive total income up by 73%.
Darktrace
Darktrace is a cybersecurity company that is pioneering the Artificial Intelligence (AI) approach to cyber safety with a product which is “self-learning”.
The software learns to detect abnormal activity in a system which, when identified, is analysed and dealt with. After the threat is resolved, the AI technology will remember how to defeat that type of threat in the future thus growing more capable with each new threat which is vanquished.
Just reading about their product and how it works explains why this UK tech company was one of several high profile listings of UK tech stocks in recent years which generated excitement in the City.
Whilst, some of these listings failed to live up to the hype, Darktrace performed exceedingly well on its stock market debut. Share price soared more than 180% in its first five months on the LSE; however, interest subsequently cooled and share price is currently sitting at around the same level as its first day’s closing price.
The price chart of Darktrace paints a picture of a UK technology stock which is not for the fainthearted.
Nevertheless, the company operates in an exciting sector. As more and more of our daily life moves into the digital world, it stands to reason that we will become more vulnerable to cybercrime. Consequently, cybersecurity is likely to grow to continue to help keep people and businesses safe.
Darktrace currently has around 8,800 customers in over 110 countries. Amongst those customers it counts a number of high-profile organisations, including the NHS, Rolls-Royce and BT. This suggests that Darktrace’s AI technology is not just a gimmick, but actually works and works well enough that big companies are willing to pay for it.
In the six months ended 31 December 2022, revenue jumped 35.8% to $260 million, with operating profit increasing 26% to $32.4 million.
How to Invest in UK Tech Companies
With an Invest.MT5 account from Admiral Markets, investors can buy shares in Wise and many other UK tech stocks. In order to start investing, follow these 4 steps:
- Open an Invest.MT5 account and log into the Dashboard
- Find your account details and click ‘Invest’ to open the MetaTrader Web Terminal
- Search for your stock and open the price chart
- Click ‘Create New Order’ at the bottom of the screen, enter the number of UK tech shares you wish to purchase and press ‘Buy’ to send your order to the market!
Investing with Admiral Markets
An Invest.MT5 account allows you to buy shares in over 4,500 companies from around the world as well as more than 200 Exchange-Traded Funds (ETFs). Click the banner below to open an account today:
UK Tech Shares – FAQ
What Is the UK's Biggest Tech Company?
Sage Group is the largest UK tech company listed on the London Stock Exchange by market capitalisation.
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