DotBig review: Top 5 technology stocks to invest in for December 2022
In 2022, a lot of people buy shares in corporations that participate in the technology industry. Obviously, they have strong reasons to do this. The techno sector’s performance is one of the most significant motivators for investors, as they see few niches would be able to outperform the biggest tech participants over the passing decade. In the past decade, the tech industry, returning 13%, turned out to be even more profitable than the S&P index, which performed a 7% return. Besides, technology giants are the most innovative and progressive market participants that tend to bring something to the market.
Since this industry is growing at an unstoppable pace, we couldn’t ignore it. So let’s find out the best technology stocks for investment as of December 2022.
As of the 8th of December, the AMZN stock price is around $88. At the beginning of 2022, the value of the asset was 45% higher. There’s no reason to be wondering why this happened. 2022 wasn’t the best year for stock investors, as the entire market suffered a severe decline. Because of this crash, many investors are reluctant to put their money on Amazon or other technology companies. We have at least two reasons why such considerations regarding Amazon are wrong.
- Amazon Web Services Inc. is about to regain its leading position in the segment of cloud computing. This time the previous year, AWS brought almost 39% of total Amazon’s quarterly revenue. This quarter wasn’t the same success, as the revenue accounted for around $20 billion, which is only 27%. However, we should consider that the performance of AWS in the previous quarter brought only 15% of the total income. The growth from 15% to 27% of one of the main services is a good indicator of the further increase.
- Amazon is going to expand its influence on other industries. Even though Amazon is one of the most valuable businesses in the e-commerce industry, it continues scaling. The next niche that could become the new source of income for the company is digital advertising. It’s quite likely that with such a strong audience base, Amazon will start paying more effort into advertising. The results of this work are visible now — the revenue generated from advertising increased by 25% over the passing year.
The APPL stock seems to be on the rise these days. Over the passing month, it grew from $135 to $140. We don’t even doubt that the APPL stock is worth buying in December. First of all, Apple is one of the most popular brands across all industries, meaning its products will be on-demand, at least from the short-term perspective. Apple regularly breaks sales records, which boosts the company’s revenue and encourages investors to consider buying APPL stocks.
Except for selling physical products, such as mainstream iPhones and iPad tablets, the Apple company is a great provider of demanded services. Just consider that two months ago, at the end of September, the company reported that the revenue generated by its services grew to $19.2 billion. This is because the company has already sold more than 900 million paid subscriptions to its different services. That’s why analysts expect the services of Apple to become a very considerable generator of operating income.
Today, the ATVI stock is trading around $76. Those who invest in Activision Blizzard in December expect to take advantage of the future acquisition by Microsoft, which is expected to take place in the summer of 2023. The deal between the game developer and the software giant is estimated at $68.7 billion.
However, the future acquisition isn’t the only reason to invest in Activision Blizzard this December. The company is going to boost its earnings and total revenue by taking advantage of the releases of several expected and delayed titles. Launches of Activision Blizzard have always been popular among the gaming community, and even those who aren’t keen on gaming have heard about such series of computer games as Call of Duty or World of Warcraft.
The one reason why the sales of Activision Blizzard might not reach the expected results is the potential decline of the mobile gaming segment. Activision Blizzard. This might be an issue for the company because mobile games can generate more revenue than console and PC releases.
In spite of some pessimistic forecasts, investments in the ATVI stock are more likely to benefit. Except for being a dividend stock, ATVI also provides investors with exposure to one of the fastest-growing segments of the technology industry. The ongoing shift to the subscription-based monetization model is one more factor to prove this statement.
MSFT, worth $244, is one of the leading technology stocks. Here are 3 reasons why investors consider putting their cash into this technology giant:
- Microsoft has been extremely productive over the course of the last two years. In the 2020 fiscal year, its revenue grew 15%, while the 2021 fiscal year performed a 17% growth, reaching a total amount of around $198 billion. The implementation of the subscription-based monetization model for Office and Xbox services turned out to be a profitable idea.
- The demand for cloud services is growing, and Microsoft keeps up with this technology trend quite successfully. Over the last quarter, the revenue driven by the Microsoft Azure cloud service grew by 35%.
- The growth of software and cloud services of Microsoft boosted free cash flow by more than 15%. Over the last fiscal year, the free cash flow brought $50 billion in revenue. Besides, the MSFT dividend keeps rising. Over the last year, the MSFT stock dividend grew by more than 10%.
Snowflake isn’t such a famous brand as all the companies mentioned before. Nevertheless, this cloud computing company is one of the fastest-growing in 2022. In the third fiscal quarter, the company reported a revenue of $557 million, which is 67% higher than the results for the same quarter the previous year. The rapid growth of the customer base is one of the biggest reasons for such impressive growth.
Analysts expect that the company will be able to show the same stable performance in the future as well. Experts predict that by the end of 2026, the companies will have the capability to generate more than $170 billion through data warehousing services and Snowflake Unistore.
Considering such a performance, we aren’t wondering why the company is expected to exit 2022 holding a 20% share of the data warehousing segment. To this extent, the only company that holds more is Amazon with 22%.
In the following 5 years, analysts predict that the annual earnings of Snowflake will grow 295%. With all these factors taken into account, we believe that the SNOW stock worth $137 is a good buy in December 2022.
Here are the 3 major conclusions we can draw from this review of the top information technology stocks:
- the technology market will keep growing over the following years;
- techno giants expand new segments such as digital advertising and subscription-based monetization;
- companies are expected to boost their revenue not only from product sales but by selling services as well.
If you consider these tendencies profitable, we suggest that you should get more exposure to the technology industry by adding these techno stocks to your investment portfolio.