[ad_1]
The post Best Tech Stocks Right Now by Shanthi Rexaline appeared first on Benzinga. Visit Benzinga to get more great content like this.
Invest in the best tech stocks today with Webull or Robinhood.
The technology sector is made up of companies that operate in the semiconductor, artificial intelligence (AI), software, computer hardware, and other industries related to information technology. This sector includes some of the world’s most well-known and largest companies, such as Microsoft, Google, Amazon, and Nvidia.
Stocks in the tech sector, which are holistically represented by the Invesco S&P 500® Equal Weight Tech ETF (RYT), have gone down with the rest of the market as RYT has provided investors with a return of -18% over the past 12 months.
Here are the top technology stocks with the highest growth, greatest value, strongest momentum, and most searches on Google.
window.LOAD_MODULE_LAYOUT = true;
Table of contents
[Show]
Best Technology Stocks Right Now
What are Tech Stocks?
From 2007 to 2017, the tech industry zoomed from $65.2 billion to $263.6 billion. However, this phenomenal growth in the tech sector doesn’t come without risks. Innovations constantly cause disruptions within the market. For example, in 2007, the introduction of the iPhone created many new businesses and ruined others. It caused the tech industry to evolve into what it is today.
This sector offers more than just sturdy mega-cap stocks and household brands like Amazon. The tech sector niche includes companies of all sizes, including start-ups. You must do your research to successfully invest in tech stocks.
Best Online Brokers for Tech Stock
A good online broker can make investing and trading tech stocks more efficient and can help you be more successful. Here are some great online brokers you should consider.
window.LOAD_MODULE_PRODUCTS_TABLE = true;
Interactive Brokers is a comprehensive trading platform that gives you access to a massive range of securities at affordable prices. You can buy assets from all around the world from the comfort of your home or office with access to over 150 global markets. Options, futures, forex and fund trading are also available, and most traders won’t pay a commission on any purchase or sale.
IBKR is geared primarily toward experienced traders and investors but now with the availability of free trades with IBKR Lite, casual traders can also acclimate to IBKR’s offerings.
Best For
- Access to international markets
- Active traders
- Detailed mobile app that makes trading simple
- Wide range of available account types and tradeable assets
- IB SmartRouting provides significant price improvement vs. industry
- Fractional trading allows investing regardless of share price
- Industry’s lowest margin rates
- Earn more by lending your fuly-paid shares
- Beginner investors might prefer a broker that offers a bit more hand-holding and educational resources
82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
Plus500 is an online CFD broker focusing on contracts for difference (CFDs). CFDs are similar to binary options in the U.S. where traders take all-or-nothing speculation on the prices of certain securities like indices, commodities or currencies. While not legal to trade in the U.S., CFDs are legal in many jurisdictions across the globe and Plus500 offers a wide array of tradable markets using these instruments.
Plus500 doesn’t charge commission and only profits off the spread, which is the difference between the buy and sell price of a specific security. But Plus500 is not a broker for beginners — the education materials are sparse and CFDs are risky derivatives capable of sapping out all of an investor’s capital. Only trade these instruments if you understand how they operate and the risks involved with buying them.
Best For
- Traders looking for a smooth mobile experience
- Great mobile app
- Low spreads and commissions
- Unlimited demo account
- Only derivatives are available
- Not open to U.S. residents
Public is the only investing platform that lets you trade stocks, ETFs, crypto, bonds, options and alternative assets—like fine art and collectibles—all in one place. Public also provides access to custom company metrics, live shows about the markets, and insights from a community of millions of investors, creators, and analysts.
Today, Public provides more ways to create a diversified portfolio than nearly any other online broker. Members can engage in sophisticated investing strategies and access a wealth of investing insights—from company-specific analysis to live audio shows and town hall-style Q&As. In addition, Public offers a premium membership tier with unique company KPIs, detailed performance metrics, and institutional-grade research.
Best For
- Stock and ETF investors
- Crypto investors
- Investors looking to diversify with alternative assets or bonds and options
- Commission-free stock and ETF trading
- Fractional share investing
- Advanced data, tools, and insights with Public Premium
- You can’t transfer crypto to another wallet
- No mutual funds or precious metals
- At this time, only offers individual brokerage accounts and not IRAs
Robinhood is a popular trading platform known for its commission-free trades and user-friendly mobile app. Ideal for novice investors, Robinhood makes it easy to buy and sell stocks, ETFs and cryptocurrencies. The platform offers a straightforward, no-frills experience, making it accessible for users new to investing. With features like fractional shares and a sleek interface, Robinhood lowers the barriers to entry for investing, allowing users to start with just a few dollars. It lacks the advanced tools and research options that more experienced investors might seek. Overall, Robinhood is a great choice for beginners seeking a simple way to invest.
Best For
- Beginners looking for simplicity
- Mobile-first investors
- Commission-free trades
- User-friendly mobile app
- Instant double
- Cash management
- Access to cryptocurrencies
- Limited research tools
- No mutual funds available
- Basic customer support options
TradeZero is an online broker and free stock trading platform that provides everything you need to successfully share and trade, including round-the-clock customer support. TradeZero provides four different trading state-of-the-art software programs with its services, a locator for sourcing shares for shorting, commission-free trades, and real-time streaming, to name a few of the features promoted on their website. The software is a unique and (potentially) affordable option for anyone interested in stock trading.
Best For
- Traders seeking high transparency and mobility in a stock trading program
- Those attracted to commission-free trades
- Those seeking a free version of a high-quality trading program
- 24/7 live customer support
- Uses ZeroWeb technology, a powerful level 2 online platform with direct market access
- Mobile app allows users to access stocks and trade in real-time while on the go
- Enforces Pattern Day Trading restrictions (accounts need to maintain a daily equity balance of at least $25k)
- Mobile app could offer more features
Features to Look for in Tech Stocks
Here are the top features investors should look for before investing in technology stocks.
- Profitability: Hands down, the best way to determine whether you should buy a particular stock is to get a firm grasp on whether it can turn a profit. Look at its profitability ratios to find out how it stacks up.
- Total addressable market (TAM): The total addressable market (TAM) reveals the maximum amount of money a company can earn in a select market — provided a company has 100% of the market share.
- Growth capacity: When a company is in the process of releasing a new product, a new customer segment or plans to cross-sell an existing product to customers, you want to evaluate the company’s potential growth capacity.
- Revenue: Look at a company’s operating revenue and nonoperating revenue and what tech companies make from their core business (operating revenue) and one-time business activities (nonoperating revenue). You’ll want to carefully consider both before you pull the trigger on a tech stock.
Things to Consider With Technology Stocks
As you look at a tech company, you should take pause when you run across certain issues. These issues might not prevent you from buying, but you need to know how certain tech startups, artificial intelligence outfits, semiconductor companies, etc operate. If you can’t find good information, you may want to move on. Remember, the stock price is just one step in reading what’s going on with Wall Street. The rest is buried in these little details:
Products
When you invest in a company, it should have products that you can see people or businesses using. Sure, a chatbot or new style of wearables is cool, but do they have potential to grab some marketshare?
Venture Capital
Where is the money coming from? Big tech companies don’t need endless investment, but a new software company has developers and venture investors to satisfy. If the company isn’t performing well, it could burn through its funding. Would it still be a good investment when it’s behind schedule and over-budget?
The Supply Chain
The supply chain hits everyone from semiconductor companies to cloud computing firms and everyone in between. Venture capital investment can pay for the supplies, but if those supplies never come, what next? The parent company may need to put projects on hold, the company could go under or it could be delisted in a worst-case scenario. So, if cars are running low on semiconductors or parts, your favorite tech ventures could be struggling, too.
Putting Tech Stocks in Perspective
The technology sector can attract you with its stability and growth potential. Investigate tech stocks’ potential to expose you to lucrative returns.
To find other top-performing stocks see below:
Compare online brokers, here are some of Benzinga’s favorites:
Frequently Asked Questions
Are tech stocks a good investment?
Tech stocks add more risk to ones portfolio, however, this risk can come along with high returns. Keep in mind tech stocks may be more volatile in a bear market.
Are all tech stocks the same?
No, the tech sector has many segments, and you need to decide which segment is best for your trading strategy.
Should you hold tech stocks?
Many tech stocks could grow so much that you can hold them for many years to come, but that’s not true of every tech stock. Research your tech assets carefully to learn how much they can grow over time.
The post Best Tech Stocks Right Now by Shanthi Rexaline appeared first on Benzinga. Visit Benzinga to get more great content like this.
[ad_2]
Source link
