You might not know how profitable tech stocks can be, until someone tells you. Yes, and that is what I shall be doing in this article today.
We shall be discussing;
What tech stocks are
Benefits of buying a tech stock.
The u.s and world reports on best stocks— We shall be discussing 5 out of 10 in this article.
What is Tech stock?
It is very simple. Tech stocks are technology related stocks. Tech stocks are growing day by day. Ranging from semiconductors producers to software providers.
According to Motleyfool, tech stocks have become a leading indicator for the economy and the stock market at large. You know how technology has dominated the world.
Investment opportunities are no longer one sided as there are different sectors you can opt for when it comes to investment. The technological sector is one of such, and the best way to do that is to invest in technology by buying stocks of technology related companies, which is what we refer to as tech stock. People all over the world have come to realize the benefits of investing in tech stocks. The business magnate Warren buffet has tech stocks that he has added to his portfolio and also some he is willing to sell.
Technology stocks are vast, ranging from stocks that are involved with research, creation, and distribution of technology related goods or services. This includes everything from computers to software, televisions to websites. Truth be told, anything technology stock is actually a big investment.
If you are ready to invest in tech stocks, then you are ready to secure a good financial state for your future.
Technology stocks create opportunities for anyone who is willing to invest in it. Infact, the sector offered the highest returns of all ranked market sectors at 34.28% in 2017.
Technology is a vast space that accommodates innovations from artificial intelligence (AI), to smartphones, blockchain, self driving technologies, streaming media services, and more
One wonderful thing about tech stocks is that it is open for both the experienced and inexperienced investors.
Benefits of investing in tech stocks
Unlike some other forms of stock investment opportunities, tech stock is highly beneficial to;
1. Experienced and inexperienced investors
This investment platform accommodates even people who do not know much about stock investment. For experienced investors, it is a way of adding more financial value to their portfolio.
There are a lot of tech stocks that you should consider buying. Companies Such as; Facebook, Apple etc provide tech stocks investment opportunities.
2. It offers opportunities for both growth and income investors
By growth investment, we refer to the process of buying shares in companies that you expect will grow a lot in the future.
Growth investment is like a long term investment. You are more concerned with the future than the present.
While income investment provides opportunities for investors in well established companies that offer income in the form of dividends—This is simply the distribution of a portion of a company's profits to its shareholders.
Yes, once you buy stock of any tech company, you stand a much better chance of sharing from their profits in the form of dividends.
Mind you, whichever type of investment you want to buy, make sure you buy it early. As soon as their initial public offering is out, that is the best time to buy as this price can change in seconds. Buying tech stocks quickly, guarantees huge returns.
Whether you are interested in growth investment or income investment, it is readily available in tech stocks.
5 of the world's best stocks of 2021
Ok, let's quickly look at five out of the ten listed by the world's report.
Tech 1: Apple(AAPL)
This is the largest publicly traded company in the world. Apple is estimated to be worth $2.2 trillion.
Apple has been reported to be the most profitable, raking in $57.4 billion in profit in the last 12 months.
Buying stock from Apple is actually good financial security.
Aside from the iPhone as one of its highest revenue generators, it has other sources to generate revenue.
Tech 2: Sonos (SONO)
According to u.s and world reports on the best tech stocks, Sonos happens to be one of the companies. Sonos is a home electronic company which earned an automatic position among the list of the best tech stocks.
Sonos is the smallest on the list though with a valuation around $2.7 billion.
Ever since this company was established in 2002, it has experienced tremendous growth. Analysts expect its sales to grow to an estimate of 10% in fiscal 2021.
Tech 3: Facebook (FB)
Facebook is one of the best stocks on the list.
The social media king has become so relevant for investors to ignore– With an estimated 3.21 billion monthly active people across its family of apps, which includes; messenger, Instagram, and WhatsApp.
So, you do not need someone to convince you with this high number of traffic that makes use of this platform. It's easier for them to generate revenue, and buying stock from them will be a great idea.
Tech 4: Alibaba group (BABA)
Another tech stock that appeared on the list of best stocks of the world, is Alibaba.
Alibaba is a huge e-commerce and flourishing cloud division, that is almost equivalent to Amazon. Alibaba trades for more than 20 times forward earnings.
Baba has grown sales by 46.2% annually compared with the 25.8% compound sales growth at Amazon over the period.
Tech 5: Spotify technology (SPOT)
Spotify technology is a music streaming platform otherwise known as spotify.
Spotify has successfully turned music into a place of social gathering since friends can connect to listen to music together and interchange playlists among themselves.
Due to its fast growth pace, it has been listed as one of the world's best stocks.
Closing Thought
The list of 5 here is in no order of hierarchy or importance. They have been reported as the best stocks of the world.
You are free to share with us what you think about this article. Also, your contributions are highly welcomed.
Source:
All the data and reports on the 5 world tech stocks are extracted from https://money.usnews.com/investing/stock-market-news/slideshows/best-tech-stocks-to-buy-this-year?slide=2
