Technology stocks gadgets manufacturers, software developers, wireless providers, streaming services, semiconductor companies, and cloud computing providers, which some called giant ,. Any company that belongs to Communications sells the possibility tech sector with a product or service heavy technology stocks & Health Care stocks.
Software companies increasingly are moving to a service model as a software, which customers rather than a one-time license purchase a subscription to one program. The software company to generate recurring revenue.
Power are all hardware semiconductor chips. Design and / or manufacture of central processing units for semiconductor companies, graphics processing units, memory chips, and a wide variety of other chips that find their way into today’s devices.
Providing wireless services to telecom companies is part of the technology sector. So are streaming videos that provide easy access to high-quality content for companies; And so are the cloud computing providers that power those streaming services.
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| Hardware Companies These design and build devices such as: |
|---|
| 1. Personal computers |
| 2. Smartphones |
| 3. Fitness trackers |
| 4. Smart speakers |
| 5. Enterprise equipment like servers and networking gear |
| Software Companies These design the software that runs on hardware, such as. |
|---|
| 1. Operating systems |
| 2. Databases |
| 3. Cybersecurity software |
| 4. Productivity software |
Top 8 Best Technology Stocks in 2022
The most valuable companies in the world are many technology companies. These are some of the most prominent and influential tech stocks.
1. Amazon.com
Amazon.com is the leading provider of the leading online retailer and cloud computing infrastructure.
2. Microsoft
Microsoft is a leading software company known for its Windows PC operating system and Office productivity software.
3. Intel
Intel is one of the world’s largest semiconductor companies. Artificial Intelligence has set Intel designs and CPU for PCs and servers to use as well as specialty chips.
4. Apple
Apple ensures rapid customer loyalty of repeat customers. Lots comes in iPhone, iPad and Mac computers.
5. Cisco Systems
Cisco Systems enterprise forms that networking is the leading provider of hardware backbone of the Internet.
6. Alphabet
Alphabet Online’s parent company’s popular Android operating system for search giant Google and smartphone.
7. Netflix
Spending billions of dollars on Netflix content to keep every year buff its growing customer base, video is the top dog in the streaming industry.
8. Facebook
Facebook, Instagram, Messenger, and WhatsApp is the largest social media company, with more than 2 billion daily active users across Facebook.
How to analyze tech stocks
For mature production technology companies that profit, cost-to-income ratio is a useful metric. Price divided by earnings per share of stock and you have more than one that you receive indicates that the importance of the company’s recent earnings and excessive market. High multiple, giving more value to the market’s future earnings growth.
Many technology companies are not profitable; The price-to-income ratio cannot evaluate them. Revenue growth matters more for these small companies – you are making some unproven investment, if you want to make sure it has solid growth prospects.
Unprofitable technology companies, it is also important that being moved from damage to the line profits down. As a company evolves, it should become more efficient, especially when it comes to the costs necessary to close sales and marketing deals. If it is not, or if spending is increasing as a percentage of revenue, that suggests that something may be wrong.
Finally, a good technique is the stock one that trades at a reasonable valuation, given its growth prospects. Clearly it is a difficult part to explore those development possibilities. If you expect earnings to skyrocket in the coming years, then paying a premium for the stock can make sense. But if you are mistaken about those growth prospects, you cannot work out of your investment.
Tech stocks could be risky to invest in, but you can reduce your risk by only investing when you feel justify believe justify their valuation prospects of their development.
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