Technology stocks provide opportunities for all types of investors. The sector's largest players have recently faced both negative and positive catalysts including new CEOs and acquisition announcements. In this article, I will discuss current investment opportunities with these four major players.
Microsoft (MSFT, Financial) is referred to as a giant in the technology sector.Microsoft has grown by leaps and bounds over the years and its shares truly exhibited its acumen in the wake of the global financial meltdown. It is undoubtedly the leader in global software technologies and solutions, which allows it to have a highly diversified portfolio of well recognized products and innovative technological solution.
According to recent announcements by the company, a new version of the Xbox will not be launched anytime soon. This is probably because of the fact that the earlier model has been able to become so successful in the market that there is no need to change it.
Sales and income have grown significantly since the XBOX was initially launched. The trend is continuing this year which has presented positive pictures for investors. Their earnings are expected to grow further this year as well.
MSFT is going strong and widening its competitive moat by investing in new technologies and markets. This means that Microsoft, which is already in a solid position, is going to grow further and therefore analysts have high expectations for Microsoft.
Considering the fact that the opening months of 2012 have been particularly impressive for the company, financial analysts speculate the company to continue its drive upwards through the year.
The stock is quite stable and offers steady returns to its investors. The yield is higher than that of most competitors in the market with minimum risk involved. This is a huge advantage for Microsoft and also the key reason why this stock is in such high demand.
I've chosen Apple (AAPL, Financial) because it is considered as one of the biggest competitors of Microsoft. It is a share that has appreciated considerably over the past year and individual investors have gone as far as having their portfolios compred solely of Apple stock. There is no doubt that Apple is growing exceptionally and investors have favorable expectations from the stock. However, it is highly risky to overexpose yourself with Apple and this beckons a closer inspection of Apple.
We should take into consideration that the mastermind behind the success of Apple, Steve Jobs, is no longer with us. Apple is currently banking on the products that were the brainchild of Steve Jobs and this is a serious concern. How will Apple manage once they're done with Steve Jobs' revolutionary ideas?
In my opinion, Apple is still an excellent investment along with Microsoft, and the stock is going to experience further appreciation over the year. However, don't make the mistake of overexposing yourself with Apple. Make sure to diversify you risk as there is still an amount of uncertainty involved with Apple after the death of Steve Jobs.
Oracle (ORCL, Financial) is another American multinational which operates in the same industry as Microsoft. It is considered to be one of the largest competitors for Microsoft in the global market. The stock appears to be steady and stable, one main reason why it has become extremely popular.
Returns and earnings for investors have been quite satisfactory allowing the company to hold a significant position in this market. Even in the recent news it was highlighted that the volumes in stock options for Oracle have been picking up before announcement of earnings.
The company has also been able to strengthen itself further by bringing in a new CEO who has an aggressive sales strategy to implement. This did lead to a lot of questioning from investors who were skeptical about this move. However, the plans for future growth that came with this new move have seemed to satisfy the critics.
Google (GOOG, Financial) has managed to grow exponentially during the past two years. In fact, its sales and income have grown by such a margin that they have surprised even the industry leaders like Microsoft. Google stock has become extremely popular because of this reason and the demand has led to a hike in prices as well.
Earnings for investors have been steady with certain situations offering capital gains arising too. Google has been developing a diversified portfolio for itself in the technology industry and has entered into direct competition with Microsoft and Apple.
The company has extensive plans for future growth including the bid for Motorola Mobility Holdings Inc. The bid will undergo scrutiny by the Chinese anti-trust agency and investors are waiting to hear more about these plans. If this deal goes through, Google will be able to widen its competitive moat further and will gain an advantage over its competitors. The stock prices will obviously rise once the deal is final.
A rise in prices means that investors will be able to make capital gains. As the company's sales and income are increasing too, there is a high chance that investors will get higher yields than before. The only problem with this investment in my opinion is that it is highly volatile. The company is relatively new in the stock market and is therefore not as wellestablished as Microsoft.
I believe that it would still be a better option to invest in Microsoft because it is well positioned for future growth and investors will be able to get higher returns than any of its competitors can offer.
Microsoft (MSFT, Financial) is referred to as a giant in the technology sector.Microsoft has grown by leaps and bounds over the years and its shares truly exhibited its acumen in the wake of the global financial meltdown. It is undoubtedly the leader in global software technologies and solutions, which allows it to have a highly diversified portfolio of well recognized products and innovative technological solution.
According to recent announcements by the company, a new version of the Xbox will not be launched anytime soon. This is probably because of the fact that the earlier model has been able to become so successful in the market that there is no need to change it.
Sales and income have grown significantly since the XBOX was initially launched. The trend is continuing this year which has presented positive pictures for investors. Their earnings are expected to grow further this year as well.
MSFT is going strong and widening its competitive moat by investing in new technologies and markets. This means that Microsoft, which is already in a solid position, is going to grow further and therefore analysts have high expectations for Microsoft.
Considering the fact that the opening months of 2012 have been particularly impressive for the company, financial analysts speculate the company to continue its drive upwards through the year.
The stock is quite stable and offers steady returns to its investors. The yield is higher than that of most competitors in the market with minimum risk involved. This is a huge advantage for Microsoft and also the key reason why this stock is in such high demand.
I've chosen Apple (AAPL, Financial) because it is considered as one of the biggest competitors of Microsoft. It is a share that has appreciated considerably over the past year and individual investors have gone as far as having their portfolios compred solely of Apple stock. There is no doubt that Apple is growing exceptionally and investors have favorable expectations from the stock. However, it is highly risky to overexpose yourself with Apple and this beckons a closer inspection of Apple.
We should take into consideration that the mastermind behind the success of Apple, Steve Jobs, is no longer with us. Apple is currently banking on the products that were the brainchild of Steve Jobs and this is a serious concern. How will Apple manage once they're done with Steve Jobs' revolutionary ideas?
In my opinion, Apple is still an excellent investment along with Microsoft, and the stock is going to experience further appreciation over the year. However, don't make the mistake of overexposing yourself with Apple. Make sure to diversify you risk as there is still an amount of uncertainty involved with Apple after the death of Steve Jobs.
Oracle (ORCL, Financial) is another American multinational which operates in the same industry as Microsoft. It is considered to be one of the largest competitors for Microsoft in the global market. The stock appears to be steady and stable, one main reason why it has become extremely popular.
Returns and earnings for investors have been quite satisfactory allowing the company to hold a significant position in this market. Even in the recent news it was highlighted that the volumes in stock options for Oracle have been picking up before announcement of earnings.
The company has also been able to strengthen itself further by bringing in a new CEO who has an aggressive sales strategy to implement. This did lead to a lot of questioning from investors who were skeptical about this move. However, the plans for future growth that came with this new move have seemed to satisfy the critics.
Google (GOOG, Financial) has managed to grow exponentially during the past two years. In fact, its sales and income have grown by such a margin that they have surprised even the industry leaders like Microsoft. Google stock has become extremely popular because of this reason and the demand has led to a hike in prices as well.
Earnings for investors have been steady with certain situations offering capital gains arising too. Google has been developing a diversified portfolio for itself in the technology industry and has entered into direct competition with Microsoft and Apple.
The company has extensive plans for future growth including the bid for Motorola Mobility Holdings Inc. The bid will undergo scrutiny by the Chinese anti-trust agency and investors are waiting to hear more about these plans. If this deal goes through, Google will be able to widen its competitive moat further and will gain an advantage over its competitors. The stock prices will obviously rise once the deal is final.
A rise in prices means that investors will be able to make capital gains. As the company's sales and income are increasing too, there is a high chance that investors will get higher yields than before. The only problem with this investment in my opinion is that it is highly volatile. The company is relatively new in the stock market and is therefore not as wellestablished as Microsoft.
I believe that it would still be a better option to invest in Microsoft because it is well positioned for future growth and investors will be able to get higher returns than any of its competitors can offer.
