The tech sector made up of a wide range of companies focused on technology and innovation, is a dynamic and rapidly evolving segment of the market. This sector includes businesses specializing in software, hardware, electronics, internet services, and more. The continuous advancement in technology and the increasing reliance on digital solutions drive this sector’s growth. Tech companies range from startups developing cutting-edge technologies to established giants with global footprints.
Investing in tech stocks offers the potential for significant growth, as these companies often lead in innovation and market expansion. The tech sector’s growth is fueled by advancements in areas like artificial intelligence, cloud computing, and the Internet of Things (IoT). However, there are disadvantages. Tech stocks can be highly volatile, with their values often fluctuating based on product cycles, market competition, and regulatory changes. Additionally, the rapid pace of technological change can quickly render products or services obsolete, impacting company performance.
For investors, understanding the tech sector’s unique characteristics is crucial. While the potential for high returns is attractive, the inherent risks and market sensitivity require careful consideration. Staying informed about technological trends and market shifts is also essential for successful investment in tech stocks. If this has you keen on investing in the tech sector, here are two tech stocks to watch in the stock market today.
Tech Stocks To Buy [Or Avoid] Now
- Netflix Inc. (NASDAQ: NFLX)
- Salesforce Inc. (NYSE: CRM)
Netflix (NFLX Stock)
Leading off, Netflix (NFLX) is a prominent streaming entertainment service provider with a global presence. Currently, Netflix is a leading platform for streaming movies and television series, including a wide array of original content. Netflix’s business model revolves around subscription-based streaming services.
Last month, Netflix announced the date and time it will report its fourth quarter 2023 financial results. In detail, the streaming giant is set to report its Q4 2023 financial results today, Tuesday, January 23, 2024, after the U.S. stock market closes.
In the last six months of trading, shares of Netflix stock have surged by 13.64%. Meanwhile, during Tuesday’s mid-morning trading session, NFLX stock is trading green on the day so far by 0.29% at $487.12 a share.
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Salesforce (CRM Stock)
Next, Salesforce (CRM) is a leading provider of customer relationship management (CRM) software and enterprise cloud computing solutions. The company delivers its applications via the Internet, a model known as Software as a Service (SaaS). Salesforce’s offerings enable businesses to manage customer interactions, sales, marketing, customer service, and analytics more efficiently.
At the end of November, Salesforce reported a beat for its third quarter fiscal year 2024 financial results. In detail, the company posted earnings of $2.17 per share, along with revenue of $8.72 billion for the quarter. For context, this is versus analysts’ consensus estimates for the quarter which were an EPS of $2.06 with revenue estimates of $8.73 billion.
In the last six months of trading, shares of CRM stock have increased by 23.94%. While, during Tuesday’s mid-morning trading session, Salesforce stock is trading red on the day by 0.27% at $279.55 a share.
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