The Crypto market has not done well recently, and investors are worried. If you are wary about investing in cryptocurrency, consider investing in other companies with a lot of growth potential. Some examples of these kinds of companies are tech stocks.
Tech stocks are shares of companies that make technology products or services. Here are three tech stocks that might be worth considering as you build your portfolio.
Amazon (AMZN)
Amazon is a leading e-commerce company that sells a wide range of products and services, including books and electronics, through its online platform. The company has achieved significant success in various markets, with a dominant position in the U.S. e-commerce market and a leadership position in the cloud computing industry.
Amazon has shown itself to be a company that can handle challenges, as demonstrated by its increasing annual revenue (164% increase over the past five years), earnings (1,000% increase over the past five years), and cash flow from operations (152% increase over the past five years).
Moreover, with a healthy cash position and $35 billion in cash on its balance sheet, Amazon is well-positioned to continue performing well and could be a good investment opportunity for long-term investors.
Microsoft (MSFT)
Microsoft is a leading tech company with diverse products and services, including office productivity software and cloud computing. The company controls 50% of the office productivity software market and has a 21% market share in the cloud computing industry through Microsoft Azure.
The cloud computing market is expected to experience strong growth in the coming years, with a compound annual growth rate of 16% between 2022 and 2030 and a projected valuation of $1.6 trillion by 2030.
In the past decade, Microsoft’s growth has been steady, with a total return of nearly 1,000% for shareholders and a 200% increase in dividends.
In the most recent quarter, Microsoft’s revenue rose 11% year-over-year to $50 billion, driven by a 24% increase in Microsoft Cloud revenue; this could see Microsoft’s diverse portfolio provide wins for investors.
Alphabet (GOOGL) (GOOG)
Alphabet, the multinational technology company also the parent company of Google, is well-known for its search engine and advertising business. It controls approximately 30% of the global digital ad spend. However, the company’s portfolio extends beyond advertising, as it has Google Cloud, the third-largest player in the cloud-computing market.
In the third quarter of 2022, Alphabet’s advertising & cloud businesses contributed a combined revenue of $61 billion to the company’s total revenue of $69 billion. Although growth has slowed in recent quarters, Alphabet’s third-quarter revenue saw a 6% year-over-year increase.
Moreover, the company had a net income of $14 billion for the three months. With a sturdy financial position, including $116B in cash & investments on its balance sheet, Alphabet may be a good investment.