There just haven’t been a lot of good investing options this year.
The Federal Reserve is
One safe haven amid all this mess has been the reliable growth and durability of the tech sector. But lately, even some of the big names in technology have seen trouble — including a few rather shaky earnings reports in the past week or two.
So are once-mighty tech names about to roll over and disappoint like the rest of the market? Or should investors see the comparatively modest pullback in these picks as a buying opportunity?
As with so many things in this market, the answer isn’t black or white. The truth is that while there are a lot of opportunities in tech, investors need to be discerning and take a more tactical approach to the sector right now than simply buying every megacap corporation with a Silicon Valley footprint.
Here’s a look at five of the biggest names in tech, ranked from worst to best:
In last place: Amazon
Look, the “worst” tech stock is still pretty good — and honestly, I expect big things from Amazon.com Inc.
At the end of October, Amazon
This is a company with high hopes that is priced for perfection. And while AWS continues to grow impressively on the top line, it’s undeniable that Wall Street is looking for a higher level of profitability after Amazon showed the promise of this cloud arm.
It’s always hard to make the valuation argument against Amazon. However, I think the script has been changed thanks to AWS, and profitability will remain a focus of investors — but not necessarily Jeff Bezos. That may create a lot of volatility and headwinds as we enter 2017.
The also-ran: Alphabet