Imagine if you could buy a piece of the companies that make your favorite smartphone apps, video games, or even your computer’s operating system. Well, that’s precisely what investing in tech stocks is all about. The technology sector comprises companies that are involved in the creation, development, and distribution of technological products and services.
You’ve probably heard the phrase ‘tech is the future’, right? Well, it’s not just a catchy saying. In the stock market, technology companies are often the ones pushing the boundaries and driving significant growth. They’re creating and improving things like artificial intelligence, cloud computing, and data storage. These technologies are changing the way we live and work, and in doing so, are creating substantial financial value. This makes the tech sector a popular choice for investors looking for ‘growth stocks’—companies expected to grow at an above-average rate compared to other companies in the market.
However, like any investment, tech stocks come with their own set of risks. The technology sector is highly competitive and fast-paced, meaning companies have to continuously innovate to stay relevant. Also, because a lot of the value in tech companies is based on future growth, these stocks can be more sensitive to market changes and speculation. But despite these risks, many investors are drawn to the tech sector due to its significant growth potential and its role in shaping the future. With that, here are two tech stocks to watch in the stock market this week.
Tech Stocks To Invest In [Or Avoid] Right Now
- Apple Inc. (NASDAQ: AAPL)
- Microsoft Corporation (NASDAQ: MSFT)
Apple (AAPL Stock)
Leading off, Apple (AAPL) is one of the most influential tech companies globally. Known for its broad range of consumer electronics and services. Best known for the iPhone, Apple also produces devices like the iPad, Mac computers, and wearable tech like the Apple Watch. Additionally, they provide services such as the App Store, Apple Music, and iCloud.
Earlier this month, Apple announced better-than-expected second-quarter 2023 financial results. In detail, the company revealed earnings of $1.52 per share, surpassing the predicted estimate of $1.44 per share, on total revenue of $94.8 billion, which exceeded anticipated revenues of $92.9 billion. However, this represented a 2.5% drop in revenue from the same quarter the previous year. Looking forward to the third quarter, the company anticipates a similar decline in revenue to the second quarter, expecting roughly $80.88 billion. Factoring in predicted gross margins of between 44.0% and 44.5%.
Meanwhile, over the last month of trading action, shares of AAPL stock have advanced by 3.44%. Additionally, as of this past Friday’s closing bell, Apple stock is trading at $175.43 a share.
[Read More] 3 Cyclical Stocks To Watch In May 2023
Microsoft (MSFT Stock)
Finally, Microsoft (MSFT) is a global tech giant that has been at the forefront of technology for decades. They are primarily known for their Windows operating system and productivity software suite, Office, which includes Word, Excel, and PowerPoint.
At the end of last month, Microsoft announced its earnings for the third quarter of 2023. In detail, the company posted earnings of $2.45 per share on total revenue of $52.9 billion. This performance exceeded consensus estimates, which anticipated earnings of $2.22 per share and revenue of $51.0 billion. On a year-over-year basis, the company managed to boost its revenue by 7.1%. In its conference call, Microsoft provided projections for the fourth quarter, expecting revenue to be between $54.85 billion and $55.85 billion.
Moreover, over the last month of trading, shares of Microsoft stock have increased by 8.94%. With that, as of this past Friday’s closing bell, MSFT stock is trading at around $332.89 per share.
If you enjoyed this article and you’re interested in learning how to trade so you can have the best chance to profit consistently then you need to checkout this YouTube channel. CLICK HERE RIGHT NOW!!
