With the third-quarter earnings season about to wind down, one thing is for sure. Despite the individual results of the quarter, the top tech stocks that dominate their specific arenas are most likely poised to continue that domination. In a technology world where size and scope often means the difference when confronting rivals and peers, it is clear that the big players will continue to hold and defend their turf.
In a series of new research reports, Jefferies continues to stay the course on the top technology stocks that the firm has rightly championed for some time. While not all the technology picks blew out third-quarter numbers, they all have a sizable advantage in their niche areas, and investors can continue to add shares. These four technology giants are also rated Buy at Jefferies.
The search giant continues to expand and is even working on a driverless car now. Alphabet Inc. (NASDAQ: GOOGL) provides online advertising services in the United States, the United Kingdom and rest of the world. It offers performance and brand advertising services, and it operates through Google and Other Bets segments. The Google segment includes principal internet products, such as Search, Ads, Commerce, Maps, YouTube, Apps, Cloud, Android, Chrome and Google Play, as well as technical infrastructure and newer efforts, such as virtual reality.
The Google segment also sells hardware products, comprising Chromecast, Chromebooks and Nexus. The Other Bets segment includes businesses such as Access/Google Fiber, Calico, Nest, Verily, GV, Google Capital, X and other initiatives.
The company reported earnings last week against some very tough comparisons from this time last year. Alphabet announced fiscal first quarter results that produced 20% year-on-year growth in revenues to $22.45 billion, in line with most expectations. On a constant-currency basis, revenues grew 23%. Google segment revenues for the quarter were up 20% over the prior year. While Google’s operating profit grew by 16.7%, the operating margin declined by just under 1% basis point.
The Jefferies analysts noted this in the report:
Paid clicks grew 33% year-over-year, beating consensus of 26% and it was the best paid click growth number in years. Mobile search was the #1...