Those looking to make a killing in the stock market need look no further than tech stocks. Yes, tech still tops the stock charts, but the industries of the new crop of tech stocks may surprise you.
The suggestions discussed in this article provide current starting points. Spot your own winners by looking for the following:
- growth markets
- companies using cutting edge technologies.
It helps if the company is established and has a decent sized customer base.
Virtual payments have ample room for growth. Industry pioneer, Paypal Holdings Inc (NASDAQ: PYPL), consistently upgrades its tech, adds new features and boasts 197 million current users. Globally, 70 to 80 percent of transactions still use cash, so it has plenty of market growth opportunity.
Casino technology continues its rapid development in presentation and security. The advent of live dealer online gaming brings a new level of realism to users’ online experiences while cutting edge security measures like SSL encryption and Iovation’s ReputationManager 360 that checks IP address and other details against a database of known cheaters, keep profits safe. Bricks and mortar casinos also upgraded security tech with in-shoe scanners for dealers that check each card for authenticity and license plate scanners to watch for known cheaters. Casino leaders in gambling tech include Penn Gaming (NASDAQ: PENN), Melco Crown Entertainment (NASDAQ: MLCO) and Wynn Resorts (NASDAQ: WYNN).
If it helps businesses or individuals do something everyday more easily, it fills a need. Benefitfocus (NASDAQ: BNFT) provides a scalable platform for processing insurance premiums. It boasts a 99.9 percent uptime and has processed premiums valued at more than $47 billion to date. Health care may restructure, but insurance is here to stay.
The cloud help desk solution, ServiceNow Inc (NYSE: NOW), helps the IT industry answer tough questions. Since its founding in 2003, NOW has gone from startup to earning revenues of $1.8 billion in 2016. More than 700 of its customers appear on the Forbes Global 2000 list. As IT continues to grow, so does the need for its customer service.
Sunny Gupta’s upstart, Apptio (NASDAQ: APTI), solves big business’ biggest problems by helping companies manage their digital assets in the cloud. The system also provides insights into IT system optimization, security, risk management and big data. APTI serves 360 customers currently and generated 2016 revenues of $160 million. Gupta wants to land the entirety of the Forbes Global 2000 list as clients, so there’s room for growth.
Not all the great tech stocks have moved out of the computer field. Red Hat (NYSE: RHT), best known for its Linux builds and server software, continues its reign as a leading tech stock. Since the early 1990s, the company has provided free, open source software in the retail market and to businesses. It makes its money from related value-added services.
Although its IPO wasn’t as impressive as expected, Facebook, Inc. (NASDAQ: FB) keeps gaining strength. The massive social media firm currently hosts 1.23 billion daily active users plus 1.15 billion mobile daily active users. It brought in an impressive $27.6 billion in revenue last year. It continually snaps up smaller companies, then integrates them. For Facebook, smaller means Instagram and WhatsApp, two well-known tech successes in their own right. It continually finds new ways to monetize and has as its market the world.
The dot com bubble burst may have hit Silicon Valley hard, but mighty tech stocks still exist. Every industry remains ripe for innovation. Finding strong stocks remains a matter of identifying business savvy innovators.