The tech sector has been on a rollercoaster for the last few months. But with the release of new products, announcements by key players, and more, now may be the time to invest in tech stocks again. Apple’s stock price is down 8.6% since its release of iPhone SE, but its recent acquisition of Beats will increase revenue. Google’s Pixel phone is another good buy because it will pave the way for future Android devices. As for Microsoft, its stock price is up 18% from a year ago, and this is due to their solid line-up of products and services on offer.
Why tech stocks are a good buy now
Of course, you’re also talking about investing in great companies. These are global giants that generate more than $1 billion a quarter, and in some cases $10 billion a quarter. These companies are large enough to provide an entry point for long-term investors. Companies in the S&P 500 now trade at a trailing price-to-earnings ratio of about 21. Their average return on equity is an impressive 15%. Their average return on invested capital is 10%. And their return on assets is 7%. In addition, the best tech stocks to buy have a strong balance sheet, which means they have the financial capacity to invest in research and development. And this is important because it provides them with a competitive advantage in the marketplace.
Investing in the tech industry
If you are new to tech stocks, you need to take a different approach than the average investor. First of all, I suggest investing in companies that you can easily invest in as a direct investor. Investing through a mutual fund means that your broker will take the direct route by selecting the stocks. However, when it comes to tech stocks, the best approach is to invest in the company itself and it’s stock. Then, once you find the company you are interested in, open a free brokerage account and trade its stock. This is the only way to reap the maximum benefit from the internet economy. Just search online and you will find dozens of different brokerage companies. There is no need to open an account with a broker.
The products and services that made Microsoft stocks rise
Demand for Azure has been significant. The growth in 2016 was just one quarter behind Amazon Web Services (AWS) and in 2016, Microsoft’s intelligent cloud business revenues were the third largest in the company’s history. Currently, Microsoft has Azure deployed in 34 different countries and regions with 83 million active users and the opportunity for growth in Europe.
The best tech stock to invest in
But which one should you buy? Let’s look at the 10 best tech stocks that have increased in price the most in the last 6 months. This is the case for Facebook, Inc. (NASDAQ: FB ), which is up 23.3% from August 5, 2017 to May 10, 2018. The stock’s 52-week high of $218.62 was hit just a few weeks ago on May 18. Aside from being a game-changer for social media and advertising, one of the main reasons for FB’s gain is the tech giant’s agreement to buy Instagram and the rise of augmented reality technology. On June 11, Apple announced that it was launching the ARKit 2.
Click to Enlarge (Source: StockCharts) Apple just announced that it is teaming up with Inventec, one of the world’s biggest tech companies, to produce a new iMac and MacBook that are smaller, more versatile and easier to carry around. This will allow Apple to better compete with the new 13-inch MacBook Pro. The iMac will allow users to access the Apple ecosystem, while the MacBook will be more portable. But their most popular products are undoubtedly the iPhone and iPad. So Apple recently announced updates to these products, including the iPhone SE, the 5th-generation iPad (Pro) and the iPad Mini 4. The iPhone SE is the cheapest Apple smartphone at just $399, and the iPad Mini 4 is the most affordable tablet in the company’s tablet lineup at $329.
Possibly the most talked about tech stocks are Google’s and Amazon’s. The former is down 16% in the last year, and this is due to increased competition in their core search business. But it has other strong franchises, such as Gmail and Google Maps, that will continue to drive sales. Amazon’s stock price is up 44% since the summer of 2015, but it has its fingers in many pies, with online retail and cloud storage dominant. This has given the company a big moat, and is likely to drive them both forward. Many more tech stocks to buy now will give their investors a good chance of capitalising on the second half of 2016. Benjamin Graham, author of The Intelligent Investor, has said that buy and hold investing is risky.
So, if you’re considering making an investment in tech stocks now, consider these stocks for the long term.