The tech sector is a dynamic and innovative part of the stock market. It includes companies that develop and sell technology products and services. These range from software and hardware to internet services and artificial intelligence. Tech stocks represent ownership in these companies. They are known for their potential for rapid growth and innovation.
Investing in tech stocks can offer several advantages. Many tech companies are at the forefront of technological advancements. This can lead to strong revenue growth and potentially high returns. Tech stocks often benefit from societal trends towards digitalization. However, they also come with risks. The tech sector can be volatile, with rapid changes in consumer preferences. Competition is intense, and today’s leader can quickly become tomorrow’s laggard.
When considering tech stocks, investors should research thoroughly. Look at a company’s financial health, market position, and growth prospects. Be aware of the company’s competitive landscape and potential regulatory challenges. Tech stocks can be more expensive than other sectors. This is due to high growth expectations. Stay informed about technological trends and their potential impact on the market. That said, let’s now look at two tech stocks to keep an eye on in the stock market right now.
Tech Stocks To Invest In [Or Avoid] Today
- Netflix Inc. (NASDAQ: NFLX)
- Microsoft Corporation (NASDAQ: MSFT)
Netflix (NFLX Stock)
First up, Netflix Inc. (NFLX) is a global streaming entertainment service provider. It offers 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 its most recent second quarter of 2024 financial results. The streaming giant reported Q2 2024 earnings of $4.88 per share, with revenue for the quarter of $9.56 billion. This came in versus Wall Street’s estimates for the quarter which were earnings of $4.70 per share, on revenue estimates of $9.53 billion. Additionally, revenue for the quarter increased by 16.76% compared to the same period of the prior year.
Year-to-date, shares of Netflix stock have rose by 36.33% so far. Moreover, during Friday morning’s trading session, NFLX stock opened slightly higher up 0.77%, trading at $639.28 a share.
[Read More] 2 Semiconductor Stocks For Your Late July 2024 Watchlist
Microsoft (MSFT Stock)
Following that, Microsoft Corporation (MSFT) is a global leader in software and technology solutions. Their products range from widely-used operating systems to productivity tools and gaming platforms. Microsoft’s cloud services, including Azure, have become a major part of their business. The company has also invested heavily in emerging technologies like AI and mixed reality.
Just this month, Microsoft announced when it will report its most recent Q4 2024 financial and operating results. In detail, the tech giant is set to announce its fiscal year 2024 fourth-quarter financial results on Tuesday, July 30, 2024, after the U.S. stock market closes. During the company’s conference call from last quarter, Q3 2024, Microsoft said it expects fourth-quarter revenue to come in between $62.80 billion to $64.50 billion.
In 2024 so far, shares of MSFT stock are up 14.12% year-to-date. Meanwhile, on Friday morning, Microsoft stock is trading higher during the morning trading session, up 1.21% on the day, trading at $423.48 a 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!!
