Investing in tech stocks has become a popular option for investors looking to diversify their portfolios and capitalize on the rapidly growing technology sector. But what exactly are tech stocks, and why is it important to understand them? Let’s dive in and take a look at what tech stocks are and how they can be a valuable part of your investment portfolio.
What Are Tech Stocks?
Tech stocks are any company shares related to the production of technology goods or services. This includes companies that develop, manufacture, and/or sell products such as computers, software, semiconductors, networking equipment, and more. Tech stocks also include companies related to internet services such as Amazon (NASDAQ: AMZN) or Alphabet (NASDAQ: GOOGL).
Investing in tech stocks provides investors with several benefits. First, tech stocks tend to be very innovative and forward-thinking, so there is potential for growth with these investments. Additionally, the technology industry is constantly changing and evolving due to new innovations so investing in tech stocks can provide investors with a diverse portfolio that stands out from other investments. Keeping this in mind, let’s look at two tech stocks for your watchlist in the stock market now.
Tech Stocks To Watch Today
- Microsoft Corporation (NASDAQ: MSFT)
- Snowflake Inc. (NYSE: SNOW)
Microsoft (MSFT Stock)
Kicking off our list today is Microsoft Corporation (MSFT). Microsoft Corporation is one of the world’s largest technology companies, offering products and services in over 190 countries. Its main offerings include software, hardware, services, and cloud computing. In October, Microsoft reported its Q1 2023 financial results.
Diving in, the tech giant reported 1st Quarter 2023 earnings of $2.35 per share and revenue of $50.1 billion. For clarity, analysts’ consensus estimates for the 1st quarter of 2023, were earnings of $2.29 per share on revenue of $50.1 billion. Additionally, Microsoft also announced revenue grew by 10.6% versus the same period, the previous year.
In 2022 so far, shares of Microsoft stock have fallen by 26.62%. Though, in the last month of trading action, MSFT stock has rebounded by 7.80%. On Wednesday, shares of MSFT stock are trading higher off the open by 0.21%, at $245.64 a share.
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Snowflake (SNOW Stock)
Next, Snowflake (SNOW) is an American cloud computing company. The company offers an enterprise data platform that allows customers to store and manage their data securely in the cloud, while also providing powerful analytics tools that enable customers to analyze their data quickly and accurately. Moving along, at the end of November, Snowflake reported its financial results for Q3 FY 2023.
In the report, the company announced a Q3 2023 loss of $0.10 per share and revenue of $557.0 million for the quarter. In addition, Snowflake also reported that revenue increased by 66.6% versus the same period, a year prior. Next, the company also said it now estimates the fiscal year 2023 product revenue to be in the range of $1.91 billion to $1.92 billion.
Shares of SNOW stock have been beaten down by 58.63% so far year-to-date. Meanwhile, in the last month of trading action, SNOW stock has started to recover by 6.39%. During Wednesday’s mid-morning trading session, Snowflake stock is trading modestly higher by 0.45% at $137.35 a share.
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