Whether you follow the New York Stock Exchange (NYSE) or the NASDAQ, you’ve likely noticed tech stocks have had their ups and downs over the years. The reasons why tech stocks are down or on the rise depend on a variety of factors outside of the stock market. This only enforces the need for sound information and wise investing advice to guide you into the future of tech stocks.
The truth is that tech stocks have a shaky past if you look at the U.S. dot-com bubble burst of the early 2000s. Many investors thought they were going to make millions or even billions from the stock market on new tech companies, but they ended up losing just as much in some cases. While today’s tech companies have seen some ups and downs, overall, they are more stable than those of decades past.
Let’s take a look at how tech stocks performed on the stock market or the New York Stock Exchange (NYSE) in 2017 and 2018, and what you can expect for 2019 and beyond with the future of tech stocks.
How Tech Stocks Performed in 2017
In 2017, Goldman Sachs analyst Robert Boroujerdi looked at five of the leading tech stocks and compared their performance to that of the best tech stocks of the early 2000s. He discovered that the giant tech companies of today are cheaper than their counterparts from nearly two decades ago. The top five tech stocks make up 13% of the overall market value, though they are only 1% of the companies that are in the index. In 2000, the top five tech stocks made up 16%, which is not far off from today.
After hearing this news, investors started scrambling. Apple fell 4%, Google, Amazon, and Facebook fell by about 3%, and Microsoft was down 2%.
There were some hiccups at individual tech companies, but overall the research released by Boroujerdi was the major cause for tech stocks being down. This goes to show how an outside factor could influence the reason why tech stocks are down.
How Tech Stocks Performed in 2018
Facebook is a tech giant and has been in the news over the years for a variety of reasons. Many of these events can explain why their tech stock went down. In November of 2018, Facebook hit its lowest stock price since April of 2017 by falling 2.4%. While other companies like Apple and Amazon also fell, Facebook had been seeing a downward trend for the past year or so. Over 12 months, they lost 21% of their value due to the platform’s privacy concerns, a security breach that impacted 30 million users, and its spreading of harmful and misinformed content. At the same time, the platform also experienced an outage, so users were not able to log on.
In October of 2018, tech stocks went down with an overall global decline. In that month, tech stocks were down nearly $1 trillion because of trade tensions between the United States and China. Slowing global demand and concerns about wrong valuations also contributed to the decline.
Tech Stocks in 2019
So far, there has been no major tech stock on the New York Stock Exchange (NYSE) declines in 2019. However, the hype surrounding tech stocks on Wall Street in 2019 is not up to those same levels in 2017.
A reduction in capital investment, as well as weaker consumer spending and higher income demands, have all taken a toll on the tech industry in 2019, leading them to be more conservative with spending. Congress and the Trump administration seem to be tightening up on privacy and security, which could affect tech companies as well. In 2019, aggregate earnings for tech stocks are predicted to fall by 1.8%. However, at the same time, one analyst said that the winners of 2019 are going to be Apple, Mastercard, Microsoft, PayPal, and Genpact.
Unfortunately, when you invest in anything, there is no guarantee you’ll make a solid return. Tech stocks are no different on the New York Stock Exchange (NYSE) or the NASDAQ. What you have to do to be profitable in tech stocks in 2019 and beyond is to pick the right winners.
Future Tech Stocks that Will Skyrocket
Now that you know the answer to “Why are tech stocks down?” you see that overall, they are still performing well. Investors are being more conservative to avoid the catastrophes of years past.
If you want to invest in tech stocks, you need to find future tech stocks that will make you profits. Analysts say that the following stocks and tech giants are going to be doing well in 2019 and beyond.
- Workday: Workday, which is used by the financial and human resources industry, is impressive. Its revenue is set to increase more than 30% in the current fiscal year. Pre-sharing profits are expected to jump from $1.03 last year to $1.61 in the next fiscal year.
- Microsoft: Microsoft is huge in the cloud industry, which is rapidly gaining profits. There is a current “cloud arms race” happening, and Microsoft is leading it.
- Apple: While Apple fell 8% in 2018, it is expected to grow in the future because the company has a captive audience that needs their services.
- Square: The payment processing system has been doing well, and the opportunities are there for them to expand into markets like HR and payroll processing.
- Salesforce: It is a company with a great reputation that serves enterprises businesses in need of data and cloud management. As the cloud and data revolutions continue to become mainstream, Salesforce’s stock is expected to rise.
Learning More About Future Tech Stocks with Nova-X Report
If you want to continue your education on tech stocks, sign up for Nova-X Report, a subscription-based newsletter that will deliver the latest tech stock news to you and ensure you’re on the ground floor of all the latest happenings in the tech industry, on the New York Stock Exchange (NYSE), and the NASDAQ. You’ll discover future tech stocks to invest in, and when the market is plummeting, you can learn the answer to why tech stocks down right away.
Michael Robinson, who was there for early meetings about the now-booming cloud industry and was there when McAfee was acquired for $7.8 billion. He knows tech stocks and Wall Street in and out. His experience working along the tech giants in Silicon Valley has set him up to give out valuable advice to his thousands of newsletter subscribers. When you’re a subscriber, you’ll hear about big data, the cloud, security, privacy, emerging technologies, and many other topic topics in the U.S. and tech world today. All you have to do is open up your email, read it over, and make the bold investing moves that Robinson recommends to win big.
It’s time to invest in the right emerging tech stocks that are about to take off. If you want to be part of the tech revolution, make sure you subscribe to Nova-X Report today. When your stocks start making you record returns, you’ll be glad you signed up.