The technology sector is rapidly growing as investors seek to discover the latest tech stocks and look to add value to their portfolios.
The tech sector is comprised of companies that invest in goods and services (such as computers and software), artificial intelligence, and information technology. Some of the largest tech stocks fall under the umbrella term FAANG.
These companies include Facebook (FB), Amazon (AMZN), Apple (AAPL), Netflix (NFLX), and Google (GOOGL). They are categorized under the communications, information technology, and retail sectors.
Tech stocks worth looking at in 2021
I’ve had a look at three of the largest tech stocks considered to be good long-term investments and they may be worth your while.
These companies are well established and have been around for many years. As a result, they have been able to diversify and expand their products and services within the technology sector.
If you’re seeking to acquire tech stocks as a long-term investment venture; here’s a quick breakdown of the three of the largest tech stocks.
Microsoft (NASDAQ: MSFT)
Microsoft (NASDAQ: MSFT) is one of the largest companies in the tech space specializing in software. Infrastructure software is a large growth area with new apps and computer programs constantly being introduced into the market.
Besides regular software, Microsoft’s product range includes video games and productivity tools.
These products require cloud infrastructure meaning Microsoft has to constantly build on it. They are currently working on offering a cloud-streaming model through Xbox.
If successful, the streaming platform could further drive the expansion and growth of Microsoft into new markets.
For this reason, the growth of the company is almost inevitable and could be lucrative if you buy the company’s stock.
Here’s a graph showing the stock’s growth since 2016.
Facebook (NASDAQ: FB)
Facebook is a social media site with the largest followings globally. As a tech company, the stock can be compared to telecommunication services, media, and entertainment services.
Facebook has had its ups and downs in share price and like any investment, there must be due diligence research done before investing.
Quantitative research of revenue, income, and earnings and qualitative research about their management can help in making a more informed decision.
Reviewing features and metrics such as ads growth and product innovation can offer data on the performance of the company in the future.
Apple (NASDAQ: AAPL)
Apple is responsible for the iPhone, laptops, and PCs. They also hold a huge chunk of the smartwatch market.
The company is also doing quite well with a fast-growing digital content streaming business which comprises Apple TV and Apple Music.
The fact that Apple customers usually purchase more than one of these products at any given point in time signals the further growth of the company over the next few years.
We could start with this information before looking more into more details in regards to the Apple stock before diving in.
Alternative Investment options
If you don’t want the risk of investing in one asset, you may want to invest in portfolio securities known as Exchange Traded Funds (ETFs).
For instance, a popular ETF that has a bundle of securities in the tech industry is the Vanguard Information Technology Index Fund (VGT).
VGT is just one of the many ETF options available to gain access to the market. Some of the larger security holdings within the portfolio include Apple and Microsoft.
The technology sector is fast growing with high competition and large investments into research and development. For this reason, buying stock in the sector may be a worthwhile investment.
Nevertheless, always remember that buying stocks comes with the usual risk of losing all your capital. Due diligence is necessary before buying any stock.
Also, remember to find out more about the available online trading platforms and brokers that will meet your trading needs.
The information provided above is general in nature and does not constitute financial advice nor does it consider your personal circumstances. For financial advice, please talk to a professional financial advisor.
About the author
Lucas Hawke writes for Wage Investor, a platform seeking to empower individual investors in their quest for financial independence. Whether you are just starting, or well on your way to financial freedom, Wage Investor is a knowledge base and community that encourages all investors to make informed investment decisions for long-term growth.