The best tech stocks to invest in are companies that focus on innovations that will change our world for the better. These companies are constantly developing new technologies that can help us live better, healthier lives and save money.
For mature technology companies that produce profits, a P/E ratio is a useful metric for evaluating the value of their stock. But for younger, unprofitable companies, revenue growth matters more than price-to-earnings.
One of the world’s leading tech companies, Apple has a strong brand and supply chain mastery that helps it sell more than two billion iPhones a year. It also offers a host of other products and services, including the Apple Watch, AirPods, and other accessories.
The company’s focus on creating innovations that improve people’s lives gives it an advantage over its rivals. It’s also built an ecosystem of devices and services that keep customers loyal to the brand.
It’s also a value investor’s dream, with high margins and outsized cash flow that helps it pay a dividend. It’s also repurchasing shares regularly and plans to do so for years to come. And its stock is trading at a reasonable 22 times earnings, which means it’s a good investment opportunity.
Microsoft produces a wide range of computer software for desktops, laptops, tablets, and smartphones. It also produces the Xbox gaming console system and the Surface line of touch computers.
The company also provides cloud computing services through its Azure platform. Its enterprise business is a dark horse, but it has the potential to grow fast in the years ahead.
Despite recent worries over economic turbulence, Microsoft’s earnings are projected to grow at a solid double-digit rate in 2022. Its strong balance sheet and track record of dividend growth are encouraging, as are its multiple revenue streams.
Amazon is one of the best tech companies to invest in, with a long track record of growth. The company is a market leader in e-commerce and cloud computing services, and its share price has grown over 2,000% since it went public in 1997.
Founded in 1994 by Jeff Bezos, Amazon specializes in e-commerce, cloud computing, online advertising and digital streaming. It is one of the largest online retailers and sells a wide range of products, including books, electronics and toys.
Amazon is also known for its free two-day shipping service and Prime membership, which provides unlimited streaming access to movies and TV shows. It also offers other services like Amazon Music, Amazon Photos and Audible. It also produces consumer electronics, including the Kindle line of e-readers and tablets.
Google, a subsidiary of Alphabet, is the most popular search engine in the world. Its mission is to organize the world’s information and make it universally accessible and useful.
The company also operates Gmail, Google Maps, Android and YouTube. It is also a major provider of cloud computing services.
Tech investors can take advantage of the fact that Google has a relatively low debt ratio. Its cash balance is also large at $133.9 billion. This means that it’s not at risk of running out of cash to support growth, which is important for tech companies with a lot of investments on their plate.
International Business Machines (NYSE: IBM) is a technology company that makes and sells computer hardware, software, and services. It is known for its innovations and is one of the world’s most well-known companies.
Big Blue is an excellent choice to invest in for long-term investors because it is still a leader in the industry and is keeping up with tech trends like cloud computing and artificial intelligence. Its strategic changes have been working out for the best, with explosive growth in its software and consulting businesses this year.
The company has also stayed away from big, high-priced acquisitions this year, preferring to focus on smaller deals to enhance specific capabilities. This strategy is paying off, as IBM grew revenue and beat earnings estimates this year.