Tag: Investing

Best Tech Stocks in 2024: Tech Investing 101

The technology sector is vast, comprising gadget makers, software developers, wireless providers, streaming services, semiconductor companies, and cloud computing providers, to name just a few. Any company that sells a product or service heavily infused with technology likely belongs to the tech sector.

Person working outdoors with laptop, phone, and headphones.

Image source: Getty Images.

What are Tech Stocks?

What are Tech Stocks?

Hardware Companies

These design and build devices such as:

  • Personal computers.
  • Smartphones.
  • Fitness trackers.
  • Smart speakers.
  • Enterprise equipment, such as servers and networking gear.

Software Companies

These design the software that runs on hardware, such as:

  • Operating systems.
  • Databases.
  • Cybersecurity software.
  • Productivity software.

Software companies are increasingly moving to a software-as-a-service model where customers buy a subscription to a program instead of a one-time license. The arrangement generates recurring revenue for the software company.

Semiconductor chips power the hardware. Semiconductor companies design and/or manufacture central processing units, graphics processing units, memory chips, and a wide variety of other chips that help to run today’s devices.

Telecom companies that provide wireless services are part of the tech sector. So are the video streaming companies that provide easy access to high-quality content, and the cloud computing providers that power those streaming services.

The best tech stocks in 2024

The best tech stocks in 2024

Many of the most valuable companies in the world are technology companies. These are some of the most dominant and impressive tech stocks that investors should consider:

  1. Amazon.com (AMZN -0.83%) is the leading online retailer and leading provider of cloud computing infrastructure.
  2. Microsoft (MSFT -0.71%) is a dominant software company known for its Windows PC operating system and Office productivity software. Microsoft is also the second-largest provider of cloud infrastructure.
  3. Apple (AAPL 1.02%) makes the iPhone, iPad, and Mac computers. Intense customer loyalty ensures plenty of repeat
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Warren Buffett’s 35 Best Quotes About Business, Investing, and Life

In this piece, we will take a look at Warren Buffett’s 35 best quotes about business, investing, and life. If you want to skip our introduction to the world’s best known finance professional and his approach towards investing, then you can take a look at Warren Buffett’s 10 Best Quotes About Business, Investing, and Life.

In the finance industry that is made of mega banks the likes of JPMorgan Chase & Co. (NYSE:JPM) and hundreds of hedge funds that include giants that manage hundreds of billions of dollars, few managers manage to gain celebrity like status. In fact, it would be unwise to conclude that when we talk about financial fame, Warren Buffett of the investment conglomerate Berkshire Hathaway isn’t the best known investor in the world. Buffett’s rise to fame in the finance industry is synonymous with the growth of big business in America in the aftermath of the post second world war industrial boom.

This growth has seen Buffett invest in some of the world’s most successful companies, and then just wait patiently over time to see the fruits of his prudent decision making yield the required results. Naturally, the fact that Warren Buffett is so famous is simply because the few companies that have been lucky to experience the Oracle of Omaha’s attention over the course of not years but decades have also grown to be the biggest in their industries worldwide.

While we’ll briefly mention some of Warren Buffett’s latest stock picks in a while, his success on the stock market and a unique approach to life has provided the Oracle with, well, sage like status. Investors and non investors from every walk of life eagerly go over Buffett’s words, and he’s got plenty to say as well. A compendium can be written full of

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Top 11 Stocks to Buy From all 11 Sectors | Investing

In investing, a sector is a broad business category that a given company belongs to. Grouping companies, especially companies that offer stock to the public, by sector is a helpful way of sorting them into convenient groups.

There is no law or regulation that dictates the official names and criteria of sectors, but the financial industry has adopted and generally adheres to a specific set of sector groupings called the Global Industry Classification Standard, or GICS. The GICS was developed in 1999 in a joint effort between Standard & Poor’s Global and Morgan Stanley. It has been a reliable industry standard ever since.

Under the GICS there are 11 sectors. They are as follows:

Knowing a company’s sector is very useful when selecting stocks to buy and hold in an investment portfolio. Because different sectors can perform differently according to their own specific market and economic conditions, diversifying holdings among sectors can reduce the overall risk of a portfolio. In this way, sector diversification is an effective risk reduction strategy.

Unfortunately, with thousands of stocks grouped into 11 sectors, picking the right ones to buy can seem like a daunting task. Here’s a look at one top stock from each of the 11 different sectors:

SHW

Sector: Materials
Industry: Specialty chemicals

With manufacturing, distribution and retail outlets in 120 countries, SHW is a world leader in the development, production and distribution of paints, stains and coatings for retail and commercial customers.

SHW is a large-cap

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9 Best Small-Cap Stocks to Buy in 2024 | Investing

As the old saying goes, past performance doesn’t guarantee future returns. But it’s not uncommon for stocks that are struggling to keep circling the drain and for recent outperformers to continue to ride their momentum even higher going forward.

The following companies are among the best small-cap stocks to buy in 2024, thanks to impressive returns in the prior year and strong outlooks for the future. All have delivered gains of more than 100% since Jan. 1. At the same time, all are still modest in size, with no stock over $10 billion and a few smaller than $1 billion.

There’s risk in smaller stocks, as they are not as well capitalized as big-name blue chips. There’s also a chance that prior gains and enthusiasm will fade away in the new year if things go sideways for the broader economy, or for these stocks in particular.

That said, the following nine companies all clearly have something to offer, and each is worth considering if you’re looking for the top small-cap stocks to buy in 2024:

Stock Sector Market Cap* YTD Gain*
Applied Optoelectronics Inc. (ticker: AAOI) Technology $692 million 882%
Bitfarms Ltd. (BITF) Finance $731 million 415.9%
Carvana Co. (CVNA) Consumer discretionary $6.8 billion 740.3%
Carrols Restaurant Group Inc. (TAST) Consumer discretionary $435 billion 491.9%
Duolingo Inc. (DUOL) Technology $9.3 billion 203.9%
e.l.f. Beauty Inc. (ELF) Consumer staples $7.1 billion 132.6%
Forestar Group Inc. (FOR) Real estate $1.6 billion 103.2%
Simpson Manufacturing Co. Inc. (SSD) Materials $7.7 billion 106.9%
Talkspace Inc. (TALK) Health care $391 million 290.2%

Applied Optoelectronics Inc. (AAOI)

Sector: Technology
Market cap: $692 million
2023 performance: +882%

Manufacturer Applied Optoelectronics produces fiber optic equipment, lasers and other high-tech gear. It’s a small, niche player, but like many of the best small-cap stocks to buy now, its unique

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7 Best Marijuana Stocks to Buy Now | Investing

Earlier this year, the U.S. Department of Health and Human Services said it recommends reclassifying marijuana from a Schedule 1 drug to Schedule 3, a development greeted with enthusiasm by the legal marijuana industry.

If the rescheduling happens, then the industry would be able to come out from under the shadow of Internal Revenue Service Code Section 280E, which prohibits marijuana companies from taking certain tax deductions and credits that federally legal businesses enjoy.

That would remove a huge impediment to profitability, and in September marijuana stocks rallied to the year’s high point on the news.

Now, they have resumed a years-long slump, with the New Cannabis Ventures Global Cannabis Stock Index hitting a record low this week.

The sell-off may be rooted in worries that upcoming earnings reports might not be as strong as hoped, fears about a new House speaker who has historically opposed bills that supported the cannabis industry, and general market malaise, New Cannabis Ventures said in a note to investors.

“While 280E might get wiped out, which would be a huge benefit for cannabis companies, the sector remains under pressure,” according to New Cannabis Ventures.

In addition to tax issues, oversupply and competition within the legal market have depressed prices, and the cheaper illegal market lures customers who would otherwise spend on legal products.

Meanwhile, in the U.S., marijuana companies have found it harder to secure loans after the regional banking crisis earlier this year, which brought a chill to an already difficult financing market. Banking laws are set federally, and most lenders don’t want to deal with the onerous paperwork that comes with lending to marijuana companies.

These factors have led to a broad pullback in cannabis shares, creating bargain opportunities for those who are willing to hold shares for a long time.

“With

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7 Best Psychedelic Stocks to Watch | Investing

The U.S. psychedelics industry is expanding in late 2023, with heavy private investment and with the blessing of the chief U.S. drug-approval agency.

In late June, the U.S. Food and Drug Administration issued its first-ever draft guidance on psychedelic drug clinical trials in key areas like psychedelic therapy and high-end herbal medicine, providing industry companies with a glimpse at a regulatory roadmap for drug development.

In addition, the psychedelic drugs market is expected to grow from $4.9 billion in 2022 to $11.8 billion by 2029, according to U.K.-based Brandessence Market Research. That’s a compound annual growth rate of about 13.5%.

Starting in 2022, two U.S. states – Oregon and Colorado – established dates to legalize specific psychedelic substances. On Jan. 1, 2023, Oregon became the first state to legalize the adult use of psilocybin (psychedelic mushrooms) via the Oregon Psilocybin Services Act. The legislation creates a licensure process for manufacturers and service centers but requires that a state-certified facilitator be present during psilocybin consumption and does not allow retail sales.

Later in 2023, more U.S. states, including Arizona, Minnesota, Nevada and Washington, have passed legislation to open a path to legalization for so-called psilocybin services. Most psychedelics are still classified as Schedule 1 substances by the federal government, however, so it remains to be seen how federal law will comingle with state allowances for psychedelics.

Regardless, the industry appears to be a year or two away from getting enough private funding for research and development to make significant moves forward, and the opportunity for ground-floor investment in psychedelic drugs exists right now.

What stocks will prosper the most in that time frame? Many of these investments are very cheap now and are risky just because that’s the nature of the beast, so it’s important to do your due diligence

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6 Best Small-Cap Stocks to Buy in 2023 | Investing

An underappreciated edge individual investors possess? The agility to delve into small-cap stocks without influencing market dynamics – an impossible feat for the largest and brightest funds on Wall Street.

Traditional financial wisdom, however, champions mega-caps as the path to stock market returns.

A deeper dive reveals that small caps can match their mega-cap counterparts when it comes to stability. The small-cap universe has stocks of all criteria: growth, dividend, value, turnarounds – you name it.

Historically, small-cap stocks tend to outperform large-cap stocks. Scholars have labeled this phenomenon the “size-effect,” tracing its origins to more modest attention from the press, Wall Street analysts and large investment funds. This dynamic often results in a delayed or dulled market response to news or operational improvements for small-cap stocks, sometimes allowing individual investors to perform information arbitrage.

While the world of small-caps offers additional risk, the right investor can also achieve superior returns. For those keen to exploit the small-cap anomaly, these six stocks are worthy of your consideration. Whether you’re tapping into the hot artificial intelligence industry or looking to play a turnaround, this curated list caters to a diverse range of investment appetites:

Stock Sector Market cap YTD Gain (as of Sept. 7 close)
WW International Inc. (ticker: WW) Consumer cyclical $840 million 190.9%
Shutterstock Inc. (SSTK) Communication services $1.4 billion -22.5%
Intapp Inc. (INTA) Technology $2.4 billion 42.7%
International Seaways Inc. (INSW) Energy $2.1 billion 21.7%
Xponential Fitness Inc. (XPOF) Consumer cyclical $950 million -16.1%
Winnebago Industries Inc. (WGO) Consumer cyclical $1.9 billion 19.3%

WW International Inc. (WW)

Sector: Consumer cyclical
Market value: $840 million
YTD return: 190.9%

WW International, better known as WeightWatchers, is a poster story for digital disruption. With competitors releasing free apps like MyFitnessPal and easily accessible internet weight loss information, the company’s core business

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9 Best Recent and Upcoming IPOs in 2023 | Investing

The U.S. IPO space is in acceleration mode going into the last quarter of 2023, as a rush of new initial public offerings stirs up the market.

Eighty-four new IPOs have already been priced in 2023. That’s a 31.3% gain compared with 2022, according to Renaissance Capital. And those IPOs account for $16.7 billion raised to date, a 156.9% gain from 2022.

Formal IPO filings are up in 2023, as well, with 139 IPOs filed through Oct. 10, Renaissance notes. That’s up 21.9% from 2022.

Those numbers still reflect a dramatically lower rate than in 2021, however, when 416 companies issued traditional IPOs valued at $155.8 billion on U.S. exchanges, Ernst & Young reports.

Despite the massive gap, market experts believe the worst days for the IPO market are in the rearview mirror. That case continues to be made as inflation recedes, equities rebound, commodity prices stabilize and interest rate increases look as if they may be hitting a peak.

Geopolitical upheaval in the Middle East aside, “recent improvements in market sentiment and the uptick in follow-on activity could be a harbinger of brighter days in the IPO market later this year or next year,” says Mark Schwartz, EY Americas IPO and SPAC advisory leader.

Even share-price performance is showing signs of life for IPOs. In September, the entire U.S. IPO market fared better than the S&P 500, concluding the month down 2.8% versus a 4.9% tumble for the benchmark stock market index.

In the meantime, there are a few burgeoning IPO stories bubbling to the surface in the autumn of 2023, with these four up-and-comers and five recent IPOs at the top of investors’ minds:

Upcoming/Recent IPO IPO Valuation*
Birkenstock Holding Ltd. (ticker: BIRK) $9.2 billion to $10 billion
Chime Financial Inc. $25 billion
Stripe Inc.  $50
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Artificial Intelligence Stocks: The 10 Best AI Companies | Investing

Virtually every industry is being disrupted by artificial intelligence, automation and robotics in some way. The world got a firsthand look at remarkable advances in AI technology recently, including OpenAI’s ChatGPT AI chatbot, Google’s Bard AI chatbot and Microsoft’s Copilot AI assistant.

Whether it be machine learning, large language models, smart applications and appliances, digital assistants, synthetic media software, or autonomous vehicles, companies that aren’t investing in AI products and services risk becoming obsolete. Countless companies stand to benefit from AI, but a handful of stocks have AI and automation as a central part of their businesses.

Here are 10 of the best AI stocks to buy, according to Bank of America:

Stock Implied upside from Oct. 3 closing price
Microsoft Corp. (ticker: MSFT) 29.2%
Alphabet Inc. (GOOG, GOOGL) 10.2%
Nvidia Corp. (NVDA) 49.4%
Meta Platforms Inc. (META) 24.6%
Taiwan Semiconductor Manufacturing Co. Ltd. (TSM) 46.4%
ASML Holding NV (ASML) 42%
SAP SE (SAP) 21.9%
RELX PLC (RELX) 16.5%
Arista Networks Inc. (ANET) 21.7%
Baidu Inc. (BIDU) 71.9%

Software giant Microsoft invested $1 billion in OpenAI in 2019 as part of a partnership that made Microsoft Azure OpenAI’s exclusive cloud provider, and it announced a new multiyear, multibillion-dollar investment in OpenAI in January 2023. Microsoft integrated ChatGPT into its Bing search engine in February. In September, Microsoft announced that it is integrating its AI assistants into a single AI experience called Microsoft Copilot. Analyst Brad Sills says heavy investments in AI technology will drive “meaningful” upside for Microsoft’s revenue and operating income over time. Bank of America has a “buy” rating and $405 price target for MSFT stock, which closed at $313.39 on Oct. 3.

Google and YouTube parent company Alphabet uses AI and automation in virtually every facet of its business, from ad pricing to content promotion to Gmail

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