Technology Stocks

technology-stocksA business born in a garage. That is the picture many see in their mind when thinking about tech stocks these days. Legendary technology stocks like Google, Apple and Amazon were all launched by visionaries working in their suburban garages.

But remember, Hewlett-Packard was started in a garage, too. And it is certainly a technology stock. And even though they may not have been born in a one-bay bungalow, payment processors, security software developers, data providers and even travel companies (think Priceline.com) are all technology stocks.

Technology is more than the Internet

Technology stocks have impacted the American equity market for nearly a century. Long before the market mania of 1998 through March of 2000, the “new economy” and technological advances of the 1920s foreshadowed the tech bubble of modern times. But the high flying technology stocks back then were Eastman Kodak, General Electric, RCA and AT&T.

With technology stocks, investors aren’t necessarily looking for dividend income, but rather are seeking rapid growth. But with that potential upside comes a good deal of price risk. Tech stocks are not for those with digestive problems.

Today, tech has gone mainstream. Technology stocks are not just about the Internet. Apple product announcements are national media events. Media, social and technology hybrid stocks like Netflix, LinkedIn and Facebook are popularly tracked.

Industries within the technology sector include:

Software

This segment contains companies like Trend Micro, Oracle and Broadleaf that design and produce software products for business and personal computing applications. Many of these firms are based in Japan.

IT Services & Consulting

Including stocks like IBM, Fujitsu, and Rakuten, these companies may offer network management systems as well as consulting services. Many also provide e-commerce and Internet service websites.

Semiconductors

This slice of the industry manufactures semiconductors, best known as “microchips” or simply “chips,” as well as testing equipment related to circuit boards, wireless products and hard disk drives.  Companies include Teradyne, Tokyo Electron and Advantest.

Communications Equipment

Motorola, Hitachi and Harris Corp are names you might recognize in this corner of the technology stocks arena.  Products produced include cell phones, two-way radio systems, and wireless network systems.

Hardware

Hewlett-Packard, EMC and TEAC are players in this portion of the industry. Products can include servers, storage systems, personal computers, workstations, notebooks and tablets.

Opportunities in technology stocks seem to be ever-expanding. The sector now includes cloud computing, networking and a multitude of Internet applications. Commercial products and services can tap into government budgets, aerospace, retail financial and consumer innovations.

Should You Quit Facebook?

Facebook shares have tumbled 21% to $155 a share and the company's market cap has lost $80 billion in value. Should investors hang on?

Warren Buffett’s Free Bonus Shares

CNBC reports “Warren Buffett just made a quick $12 billion on a clever Bank of America investment.” Everyone knows that Buffett is the world’s best investor. So, he didn’t simply BUY the stock. Instead,  he used “free bonus shares” to multiply his profits. Right now, there’s an urgent situation for YOU to claim free bonus … Continue reading Warren Buffett’s Free Bonus Shares

IBM Gets Into Legal Weed

IBM has jumped into the legal weed industry with its report on blockchain technology. It says this $100 billion growth market needs blockchain to solve security issues.

Blockchain + Cannabis = 818% Profits

A proposed technology requirement for the legal cannabis industry could create a profit windfall for one tiny stock. Investors will reap the rewards.

The World’s Best Investor: Warren Buffett vs. Carl Icahn (part 1)

Is Warren Buffett really the world's best investor? I classify Buffett as a large-cap growth investor. Let's take a closer look at how his strategy has evolved.

More Recent Technology Stock Articles