Just imagine, if you didn’t have advanced technology, you’d probably still be milking cows and digging wells in some small village in the middle of nowhere. With the power of technology, you have migrated from that village to the global village.
2019 is going to be an exciting year for tech stocks as companies look for ways to use technology to become more innovative, efficient, agile, and competitive.
After more than a profitable run in the market during the period of spiking tech stocks back in 2017, these prominent stocks have seen a downfall in form of a batter of negative trends that arrived with the mere beginning of 2018.
The previous profitable run of tech stocks was led by Alphabet (GOOGL), Amazon (AMZN), Facebook (FB), Apple (APPL) and Netflix (NFLX), while the tech sector was down for a major fall with the beginning of October 2018.
Besides from Facebook’s infamous data sales scandal that most probably caused a major loss of -15% during 2018, the entire sector was affected by a case of unfavorable levels of volatility. However, this case might only mean that tech stocks can be bought as a bargain, as technology will always be in demand, especially with accelerated development of new transformational technologies.
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Top Profitable Tech Stocks to Consider Owning in 2019
Nvidia (NVDA) surprised most of investors by gaining nearly 800% in the period between 2016 and October 2018 when the tech market started to experience negative trends, when Nvidia’s gains by far were almost halved.
Nvidia’s profits might have gone down with the fall of the cryptocurrency market as the company was selling mining equipment, however, the company’s major focus is set on video games, which includes AI applications, still making it a favorable tech stock.
Workday (WDAY) on the other hand is not a famous name unlike tech giants like Google’s Alphabet, however, Wall Street watchers are predicting 25% of fiscal growth for 2019, having the company already reporting 30% of increase in sales for the past year, predicting increases in sales for 2019.
Investors who are willing to stick with tech giants such as Microsoft, can rely on the rising popularity of cloud-based software and services as Azure is preparing to take over the well-established large userbase and Microsoft users who are willing to take a switch to cloud-based Office software that is said to take over 2019.
Best Tech Stocks to Buy for 2019
Twitter (TWTR)
For the cultural lynchpin it is, Twitter doesn’t get a proportionate amount of love. At this writing, its market value of $24 billion was about one-seventeenth Facebook’s. While Twitter is objectively smaller and less valuable than FB, CEO Jack Dorsey’s efforts to clean up the social media platform are paying off: The culling of millions of fake accounts is landing with advertisers, and revenue growth unexpectedly hit 29 percent in the third quarter as profits more than doubled. Twitter’s price-earnings-growth ratio sits at 1, an attractive number rarely seen in high-growth companies. Analysts only expect 13 percent revenue growth in 2019, a conservative figure likely to be eclipsed.
Apple (AAPL)
Just because Apple is one of the most valuable companies on the planet doesn’t automatically mean it’s one of the best tech stocks to buy for 2019. But it does de-risk shares significantly: Apple’s gargantuan size gives it economies of scale and negotiating leverage with suppliers. Apple’s strong brand – which translates to pricing power with consumers – plus over $237 billion in cash, virtually guarantee AAPL’s long-term survival. Apple’s late 2018 sell-off gives investors the opportunity to buy the iPhone-maker on a pullback, an opportunity that has historically worked quite well. Apple’s decision to go to a recurring revenue model, in which consumers pay in monthly installments gives it even further stability.
Amazon.com (AMZN)
E-commerce’s most dominant name, Amazon shares have pummeled the broader market for years now, racking up extraordinary gains. During October’s tech sell-off shareholders saw the flip side of that relationship, as AMZN fell 25 percent in a month. For investors willing to bear the short-term volatility of a long-term winner, Amazon’s definitely one of the best tech stocks to buy for 2019 (and hold for decades). Its high-profile new HQ2 locations will add 50,000 high-level jobs as Amazon doubles down on investing in its long-term growth. After years of foregoing profits, Amazon Web Services is bringing hyper-fast earnings growth to AMZN: profit margins soared from 0.6 percent to 5.1 percent last quarter.
Alibaba Group Holding (BABA)
While not the only stock to fall over fears of trade wars and China’s slowing economy, Alibaba stock was arguably the most prominent casualty of Wall Street’s pessimism on Asia. Down roughly 30 percent from 2018 highs, it’s certainly not BABA’s business that caused the sell-off. In fact, Alibaba is growing more quickly than even Amazon was when Amazon was Alibaba’s size. In 2011, Amazon revenue grew 40 percent from $34.2 billion to $48.1 billion. This year, analysts expect Alibaba to grow 54 percent, from $36.1 billion to $55.6 billion. With “China’s Amazon” selling at a discount, BABA is easily one of the best tech stocks to buy for 2019.
Facebook (FB)
As one of U.S. News’ 10 best stocks to buy for 2019, it’s no surprise Facebook also goes down as one of the top tech stocks to buy for the year ahead. Sure, 2018 was no cakewalk for FB, but at just 20 times earnings, Facebook’s high growth – analysts expect revenue to double from $40 billion to $80 billion between 2017 and 2020 – is too great to ignore. Though earnings growth will decelerate due to lower-margin video ads and much-needed investments in cybersecurity and news-vetting, billion-user-plus platforms WhatsApp and Facebook Messenger represent huge monetization opportunities. Alphabet (GOOG, GOOGL), by contrast, sells for 40 times earnings despite much slower top-line growth.
Baidu (BIDU)
Colloquially known by many investors as the “Google of China,” BIDU was once a Wall Street darling. But 2018 wasn’t so kind to the Asian search engine giant, and unlike many large-cap tech stocks, Baidu trades at extremely modest multiples – shares go for just 13 times earnings. Steadily growing revenue around 20 percent or so annually, Volvo recently chose Baidu’s autonomous driving software to power its future fleet of Chinese robotaxis. More immediate catalysts for BIDU include iQiyi (IQ), a leading Chinese streaming video company of which Baidu owns a majority stake, and a virtual assistant install base that grew 41 percent to 141 million between July and September.
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