The technology sector encompasses a broad range of companies focused on the development, production, and distribution of technology-based goods and services. This sector includes industries like software, hardware, electronics, and internet services. It’s a dynamic and fast-evolving sector, often leading the way in innovation and influencing various aspects of daily life and business operations. Tech companies range from startups to well-established giants, each contributing uniquely to technological advancements.
Investing in tech stocks can offer substantial advantages. The sector is known for its high growth potential, as technology becomes increasingly integral to both consumer and business markets. Tech stocks often lead in market rallies and can provide significant returns. However, there are also inherent disadvantages. The tech sector is highly competitive and subject to rapid changes in consumer preferences and technological advancements. This can lead to volatility and unpredictability in stock prices.
For investors, the tech sector requires a keen understanding of market trends and technological innovations. While tech stocks can be lucrative, they also demand careful analysis and a long-term perspective. Investors should also be aware of regulatory changes and global economic factors that can impact the tech market. Taking this into consideration, here are two blue-chip tech stocks to watch in the stock market now.
Tech Stocks To Invest In [Or Avoid] Right Now
- Netflix Inc. (NASDAQ: NFLX)
- Amazon.com, Inc. (NASDAQ: AMZN)
Netflix (NFLX Stock)
First up, Netflix Inc. (NFLX) is a leading global entertainment service company, primarily known for its streaming services that offer a wide array of television series, documentaries, and feature films across various genres and languages. Netflix has grown into a dominant player in the streaming content industry, producing and distributing content both produced in-house and by other content creators.
Earlier this month, Netflix announced plans to release its financial results for the fourth quarter of 2023. The report, including the company’s business outlook, will be posted on Netflix’s investor relations website on January 23, 2024, around 1:00 p.m. Pacific Time.
Year-to-date, shares of Netflix stock have advanced by 65.89% so far. Meanwhile, during Tuesday morning’s trading action, NFLX stock is trading slightly higher on the day by 0.60% at $489.05 a share.
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Amazon (AMZN Stock)
Next, Amazon.com, Inc. (AMZN) is a multinational technology company primarily recognized for its e-commerce platform, which has reshaped the global retail industry. Amazon has expanded its business scope to include cloud computing services (AWS), digital streaming, artificial intelligence, and more.
Back in October, Amazon announced better-than-expected third-quarter 2023 financial results. In detail, Amazon notched in Q3 2023 earnings of $0.85 per share, along with revenue of $143.08 billion. This is versus Wall Street’s consensus estimates for the quarter which was earnings of $0.58 per share on revenue estimates of $141.47 billion. Additionally, revenue advanced by 12.57% compared to the same period, the previous year.
In 2023 so far, shares of Amazon stock have jumped by 78.93%. With that, on Tuesday morning, AMZN stock is trading modestly lower on the day thus far by 0.34%, at $153.54 a share.
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