The tech sector represents companies that develop and sell technology products and services. It includes software developers, hardware manufacturers, internet companies, and semiconductor firms. Tech stocks are shares in these innovative companies traded on public exchanges. The sector is known for its potential for rapid growth and disruptive innovations.
Investing in tech stocks can offer several advantages. Many tech companies are at the forefront of digital transformation trends. They often have scalable business models, allowing for rapid expansion. Some tech giants offer steady dividends, appealing to income-focused investors. However, tech stocks also come with risks. The sector can be volatile, with sharp price swings. Competition is intense, and today’s leader may quickly become obsolete. Regulatory challenges and cybersecurity issues can impact tech companies’ performance.
When considering tech stocks, it’s important to evaluate a company’s competitive position and innovation pipeline. Assess their ability to adapt to emerging technologies and changing consumer preferences. Look at factors like revenue growth, profit margins, and cash flow. Consider the potential impact of regulatory changes on the company’s business model. Be aware that many tech stocks trade at high valuations. This reflects optimistic growth expectations but can lead to significant drops if expectations aren’t met. Having said that, here are two tech stocks to watch in the stock market today.
Tech Stocks To Invest [Or Avoid] In 2024
- Meta Platforms Inc. (NASDAQ: META)
- Netflx Inc. (NASDAQ: NFLX)
Leading off, Meta Platforms Inc. (META), formerly known as Facebook, is a multinational technology company. They operate a portfolio of social media and communication platforms, including Facebook, Instagram, WhatsApp, and Messenger. Meta is also heavily invested in developing virtual, augmented reality, and artificial technologies.
At the end of July, Meta Platforms announced its second quarter of 2024 financial and operating results. The tech giant notched in Q2 2024 earnings of $5.16 per share, with revenue of $39.07 billion. This came in better than analysts’ consensus estimates, which were earnings of $4.70 per share, and revenue estimates of $38.19 billion for the quarter. In addition, Meta Platforms also saw a 22.10% increase in revenue compared to the same period, the previous year.
Looking at the last month of trading, shares of META stocks have gained by 11.11%. Moreover, during Monday’s mid-morning trading session, Meta Platforms stock is trading up another 0.21% on the day, currently trading at $568.48 a share.
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Netflix (NFLX Stock)
Now, let’s look at Netflix Inc (NFLX). The company is a global streaming entertainment service provider. They offer a wide variety of TV series, films, documentaries, and original content across diverse genres and languages. Netflix operates on a subscription-based model, allowing members to watch content on various internet-connected devices.
Earlier this month, Netflix announced when it will be releasing its most recent third-quarter 2024 financial results. Diving right in, the streaming giant will report its Q3 2024 financial results and business outlook on Thursday, October 17, 2024 following the stock market close.
In the last month of trading action, shares of Netflix stock are up 4.71%. Meanwhile, during Monday’s mid-morning trading session, NFLX stock is trading flat on the day so far, currently trading at $708.00 a share.
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