On August 7, 2015 (5 years ago), NVidia stock opened at $22.98 per share, and today (July 31, 2020), it closed at $424.59 per share. If you had invested in NVidia stock (a tech stock) five years ago, you do be sitting on over 1800% growth. An 1800% stock growth over five years summed up in one word: Outstanding.
To put things in perspective, if you had invested $10,000 in NVidia stock 5 years ago, you’d have $184,765 today.
Don’t get too excited just yet.
Juniper Networks’ stock opened at $28.06 per share on August 7, 2015 and closed at $25.38 today (July 31, 2020). Five years just went by and the stock is simply dead in the waters. Needless to say much, investing in Juniper Networks five years ago is a bad investment.
So, are tech stocks a good investment? Well, it depends. Tech stocks are often overvalued, as a result fail to reach expectations down the road, resulting in either stock growth stagnation or worst, stock crash. However, investing in reasonably priced tech stocks with very strong fundamentals have proven to be great investments, like Amazon 20 years ago, and Alphabet 15 years ago.
Over the past decade, institutional and retail investors alike, have witnessed the rise of outstandingly successful tech stocks, that has grown enormous in size and price.
Prominent amongst their peers are the FAANG (Facebook, Apple, Amazon, Netflix and Google) and Microsoft somewhere in-between.
Apple, Amazon and Microsoft currently have a market cap that’s over 1.5 trillion dollars and are tipped to become the first 2 trillion dollars company. These stocks dominates popular indexes like the S&P 500. They are the darling of today’s stock market, where they go, the market goes.
Tech stocks are highly attractive investments, notwithstanding, chances of tech companies failing is incredibly high.
To sum everything up in one sentence, “tech stocks are great investments only when you pick the right ones” and there are not many “right ones” in the market.
3 Good Tech stocks pick for the long term
Zoom Video Communications, Inc. provides a video-first communications platform in the Americas, the Asia Pacific, Europe, the Middle East, and Africa.
The company’s product portfolio includes Zoom Meetings that offers HD video, voice, chat, and content sharing through mobile devices, desktops, laptops, telephones, and conference room systems; Zoom Phone, an enterprise cloud phone system that provides secure call routing, call queuing, call detail reports, call recording, call quality monitoring, voicemail, switch to video, and other services, as well as inbound and outbound calling services; and Zoom Chat enables sharing messages, images, audio files, and content in desktop, laptop, tablet, and mobile devices for meeting and phone customers.
It also offers Zoom Rooms, a software-based conference room system; Zoom Conference Room Connector, a gateway for SIP/H.323 endpoints to join Zoom meetings; and Zoom Video Webinars enables users to conduct large-scale online events, such as town hall meetings, workshops, and marketing presentations.
In addition, the company provides Zoom for Developers that allows developers to integrate its video, phone, chat, and content sharing into other applications, as well as manages Zoom accounts; and Zoom App Marketplace enhance developers to publish their apps.
It serves education, entertainment/media, enterprise infrastructure, finance, government, healthcare, manufacturing, non-profit/not for profit and social impact, retail/consumer products, and software/Internet industries, as well as individuals.
Zoom Video Communications, Inc. has partnership with ServiceNow.
The company was formerly known as Zoom Communications, Inc. and changed its name to Zoom Video Communications, Inc. in May 2012. Zoom Video Communications, Inc. was founded in 2011 and is headquartered in San Jose, California.
Alphabet Inc. provides online advertising services in the United States, Europe, the Middle East, Africa, the Asia-Pacific, Canada, and Latin America.
It offers performance and brand advertising services. The company operates through Google and Other Bets segments.
The Google segment offers products, such as Ads, Android, Chrome, Google Cloud, Google Maps, Google Play, Hardware, Search, and YouTube, as well as technical infrastructure. It also offers digital content, cloud services, hardware devices, and other miscellaneous products and services.
The Other Bets segment includes businesses, including Access, Calico, CapitalG, GV, Verily, Waymo, and X, as well as Internet and television services.
Alphabet Inc. was founded in 1998 and is headquartered in Mountain View, California.
Apple Inc. designs, manufactures, and markets smartphones, personal computers, tablets, wearables, and accessories worldwide.
It also sells various related services. The company offers iPhone, a line of smartphones; Mac, a line of personal computers; iPad, a line of multi-purpose tablets; and wearables, home, and accessories comprising AirPods, Apple TV, Apple Watch, Beats products, HomePod, iPod touch, and other Apple-branded and third-party accessories.
It also provides digital content stores and streaming services; AppleCare support services; and iCloud, a cloud service, which stores music, photos, contacts, calendars, mail, documents, and others.
In addition, the company offers various service, such as Apple Arcade, a game subscription service; Apple Card, a co-branded credit card; Apple News+, a subscription news and magazine service; and Apple Pay, a cashless payment service, as well as licenses its intellectual property, and provides other related services.
The company serves consumers, and small and mid-sized businesses; and the education, enterprise, and government markets.
It sells and delivers third-party applications for its products through the App Store, Mac App Store, and Watch App Store.
The company also sells its products through its retail and online stores, and direct sales force; and third-party cellular network carriers, wholesalers, retailers, and resellers.
Apple Inc. has a collaboration with Google to develop COVID-19 tracking system for Android and iOS devices.
Apple Inc. was founded in 1977 and is headquartered in Cupertino, California.
Henry John is a Stock Portfolio Manager that focuses on companies developing cutting-edge technologies.
Keeping track of cutting-edge techs, companies and stocks is what I do almost everyday. And I love it. Whether it’s artificial intelligence, 5g, or autonomous vehicles; I’m all in.
I’m a self-made millionaire who made most of his money investing in technology companies while working in finance.
Yes! I owe it all to tech and finance.