When it comes to finding new stocks to invest in, tech stocks are not always at the top of a trader’s list. In fact, many investors are intimidated by technology-based stocks for several reasons. Consider a few of the most common reasons people shy away from these stocks.
First, it’s a hard sector to have a deep understanding of if you don’t work within the tech industry. From the terminology to the many different segments of the market, it can be downright confusing.
Second, the tech field changes so rapidly, investors oftentimes find it challenging to feel confident investing large sums of money into a perceived ‘gamble.’ For example, consider how quickly the livestreaming app Periscope became popular, and then how fast people lost interest in it.
Third, tech stocks can be expensive. Consider the high prices that stocks such as Apple, Amazon and Google demand.
However, for as many reasons there are for investors to feel intimidated about investing in tech stocks, there are even more reasons why it’s a smart, strategic idea to do so. First, let’s explore the current, impressive state of tech stocks. Then, discover four technology stocks to consider investing in this year. Let’s get started.
The Current State of Tech Stocks
For stocks that are often given a bad rep as being undependable, tech stocks are currently performing incredibly well for investors as 2018 comes to an end. According to CNBC, tech shares as a whole are currently up 14 percent year to date on the S&P 500. Additionally, companies like Google, Alibaba Group Holding Ltd, and others are experiencing record breaking stock prices.
From 2007 when Google initially went public until today, their stock has increased 1,780%. Just this year alone, Google’s stock rose 30%, with a single share costing $900. And they’re not the only ones experiencing major success.
Alibaba stock rose 93% in 2017, and currently costs $158 per share. China International Capital projects a potential profit of 27.54% by the start of 2019.
4 Tech Stocks to Consider Investing In
From the low prices seen in 2009, tech stocks have come a long way. As traders enter 2019, it will be more important than ever to pay attention to some of the big players in the tech industry and capitalize on their continual success. Let’s explore 4 tech stocks to consider investing in for 2019.
#1. Amazon (AMZN)
Investors take note: Amazon isn’t slowing down any time soon. This ecommerce giant continues to see astounding profits and massive success (even after their dip in October). Traders willing to stick it out through occasional dips and shakeups will be greatly rewarded in the long run.
Consider the tech giant’s plans to expand to multiple new HQ2 locations throughout the United States and create upwards of 50,000 new job opportunities. Coupled with their impressive profit margins, AMZN stock is a smart move for anyone looking to enter the tech sector.
#2. Apple (AAPL)
It should come as no surprise that AAPL stock is still considered a winning bet. If you’re looking to invest in tech stocks without major risk, this is a great option for you. Considered to be one of the most successful companies on the planet, Apple will continue to reign as a leading tech giant throughout 2019 and many years to come.
As of August 2018, Apple stock hit a $1 trillion market cap. This was after the company experienced an 18% increase in the initial 9 months of this year. In terms of the future, it wouldn’t be a stretch for the company to acquire or merge with other successful companies in the tech market, as they’ve done in the past. The pricey stock is well worth the reward when it comes to Apple.
#3. Alibaba Group Holding (BABA)
Although you may not have heard of Alibaba before, we’ve been predicting the rise in this stock for a while now. Often referred to as ‘China’s Amazon,’ BABA stock is predicted to increase by approximately 50% in 2019, moving from roughly $36 billion to $54 billion.
One of the reasons BABA stock is a great buy is the sheer opportunity the company current has, and will continue to have. China’s retail profits have jumped 900% over the past 18 years. It’s said the Chinese spend roughly 1 trillion in ecommerce every year, which far surpasses what US shoppers do.
Consider that Alibaba stock was trading for $69 in 2016 and is now $158 per share. This number is expected to drastically increase over the next 12 months.
#4. Twitter (TWTR)
Twitter is more than the popular social media app you may be guilty of spending too much time on. It’s considered among the technology giants yet it’s commonly overlooked when it comes to considering tech stocks.
Twitter has taken massive steps recently to continue to evolve as a company and invest in its platform. Consider the initiative to clean up thousands of fake bot accounts. Advertisers are taking note, as demonstrated by the almost 30% increase in ad profits in the third quarter of 2018. Although many tech investors are quick to go after Facebook stock, don’t make the mistake of forgetting about its smaller yet powerful social media competitor, Twitter.
Consider Investing in Tech Stocks Today
Tech stocks can be a great asset for traders heading into the end of 2018, and looking forward to 2019. Although they’ve traditionally been seen as more risky investments, times have changed, as demonstrated by the successes of many tech giants.
Consider the profit margins and astounding revenues of tech leaders such as Amazon, Apple, Alibaba, and Twitter. As these companies continue to evolve, grow, and rake in profit, they remain sound investments. For investors willing to hold out through the occasional dips of tech stocks, they will be rewarded in the long-term.
Read more about trading, the latest news and happenings in the stock market, our predictions, and much more at Nova X Report.