Here Are Three Hot Tech Stocks To Watch Today
Needless to say, tech stocks have had a tough year in the stock market in 2022. Though, many investors may still be looking for the best tech stocks to put on their radar. With the most recent CPI and PPI readings this week, investors may have gotten an indication that inflation has finally peaked. If that is the case, this could create positive sentiment around the tech sector.
If inflation has peaked, the Federal Reserve may not have to raise interest rates at their September meeting. Which in turn, could drive tech companies higher. Notably, top tech stocks like Apple, Inc. (NASDAQ: AAPL) and Alphabet (NASDAQ: GOOGL) are currently down year-to-date by over 9%, and 17% respectively. As a result, it would not surprise me if investors are paying close attention to their large-cap tech stocks at these current valuations. With that, let’s look at three hot tech stocks to watch in the stock market today.
Tech Stocks To Invest [Or Avoid] In 2022
- Amazon.com, Inc. (NASDAQ: AMZN)
- Netflix, Inc. (NASDAQ: NFLX)
- Microsoft Corporation (NASDAQ: MSFT)
Amazon.com (AMZN Stock)
First up, we have tech behemoth Amazon.com (AMZN). For the uninitiated, amazon is a multinational tech company that specializes in e-commerce, cloud computing, artificial intelligence, and others. Today, Amazon is widely referred to as one of the most valuable companies in the world. In particular, its Amazon Web Services provides on-demand cloud computing platforms and APIs to individuals, companies, and governments worldwide. Aside from that, the tech firm recently reported its Q2 2022 earnings results.
Diving in, Amazon posted a earnings per share of $0.10 on revenue of $121.2 billion. For context, the wall street consensus estimates were $0.15 per share on revenue of $119.5 billion. Additionally, The company reported upbeat guidance for the third quarter. Specifically, it projects third-quarter revenue of $125.0 billion to $130.0 billion. Meanwhile, analysts’ consensus revenue estimates were $127.8 billion. “Despite continued inflationary pressures in fuel, energy, and transportation costs, we’re making progress on the more controllable costs we referenced last quarter, particularly improving the productivity of our fulfillment network,” stated Andy Jassy, Amazon CEO. Over the last month of trading, shares of AMZN stock are up over 26% and is currently trading Thursday afternoon at $141.62 per share.
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Netflix (NFLX Stock)
Following that, let’s check out Netflix (NFLX). In brief, Netflix is a subscription streaming service and production company. Actually, the streaming giant is still one of the world’s leading entertainment services with over 200 million paid memberships spread out across 190 countries. Its users enjoy TV series, documentaries, feature films, and mobile games across a broad selection of genres and languages as well. Last month, Netflix announced stronger-than-expected Q2 2022 earnings.
In the earnings report, the company reported earnings per share of $3.20, while posting $7.97 billion in sales for the quarter. This is compared to the consensus earnings estimates of $2.95 per share, with sales of $8.03 billion. As a result, these figures represent a year-over-year increase of 8% in earnings. Meanwhile, sales also gained by 9%. This is all despite the company reporting a loss of 970,000 subscribers for the quarter. This came in under estimates of a loss of 2 million subscribers for Q2 2022. The company reported that this is largely because of more competition in the marketplace, and price increases.
Co-CEO of Netflix Reed Hastings commented in his note to shareholders, “Q2 was better than expected on membership growth, and foreign exchange was worse-than-expected (stronger US dollar), resulting in 9% revenue growth (13% constant currency). Our challenge and opportunity is to accelerate our revenue and membership growth by continuing to improve our product, content, and marketing as we’ve done for the last 25 years, and to better monetize our big audience. We’re in a position of strength given our $30 billion-plus in revenue, $6 billion in operating profit last year, growing free cash flow, and a strong balance sheet.“
It’s no surprise that NFLX stock has been hit hard in the first half of 2022, as the stock is still down 58.82% year-to-date. However, in the last month of trading action, NFLX stock has rebounded over 38% and is currently trading at $246.15 a share on Thursday afternoon. All in all, will you be adding NFLX stock to your watchlist right now?
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Microsoft (MSFT Stock)
Topping off the list, we have Microsoft (MSFT). This tech company needs little to no introduction. However, if you’re unfamiliar with Microsoft let’s first talk about what the company does. First, Microsoft is one of the biggest companies by market cap in the stock market. The company develops and supports a broad variety of software products, services, and other solutions. Notably, its Windows Azure is one of the most popular public cloud computing platforms available today. With a number of companies relying on Microsoft’s services, some investors may argue that Microsoft stock could be trading at a discount in the stock market today. As the overall stock market continues to rebound, I’m not surprised if investors will be keeping MSFT stock on their watchlist.
Moving along, last month Microsoft (MSFT) released its Q4 2022 earnings results. In the report, the company posted earnings per share of $2.23 on revenue of $51.9 billion. Wall Street consensus earnings estimate were earnings of $2.28 per share on revenue of $52.9 billion.
“In a dynamic environment we saw strong demand, took share, and increased customer commitment to our cloud platform. Commercial bookings grew 25% and Microsoft Cloud revenue was $25 billion, up 28% year over year,” commented Amy Hood, EVP, and CFO of Microsoft. “As we begin a new fiscal year, we remain committed to balancing operational discipline with continued investments in key strategic areas to drive future growth.” Over the last month of trading, shares of MSFT stock have recovered over 9%, while during Thursday’s lunchtime session, MSFT stock is trading at $288.70 per share.
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