Ben Franklin once said, “An investment in knowledge pays the best interest.”
That’s true when it comes down to making the right decisions on which stocks to invest in–software stocks in particular.
Risks are inevitable when investing in new technologies, especially if you are a first-timer. Not to mention the natural angst you feel about taking such a financial leap.
Check out the top 5 software stocks worth investing in.
Facebook Is in a Top Position for Software Stocks
“The stock market is filled with individuals who know the price of everything, but the value of nothing,” advised American stock investor, Phillip Fisher. He’s right.
Years ago, people brushed Facebook off as just another social media site like Myspace. Users saw no real value in another app where you could post pictures and videos like almost every other app.
Facebook proved users wrong, as well as some skeptical investors.
Noted on December 31, 2017, 2.13 billion monthly users from across the globe were active on Facebook. 1.4 billion are active daily.
Facebook has edged out other social media technologies with its acquisitions–Instagram, the Whatsapp, and Messenger–scoring big numbers with monthly users, making it a behemoth competitor in the tech world.
Intel Corp. is steady in the tech world. It’s been a successful, technological presence on the Dow since 1999.
Intel purchased Mobileye–an Isreali-based sensor company–and stepped into the market of the self-driving car game, easing investor’s mind who was once concerned about declining PC sales.
In 2017, Intel closed out with $62.0 billion in revenue. Intel also trades at 17 times earnings, making it one of the strongest software stocks to consider. Tradingview reviews offer insight.
Nuance Communications, Inc
Nuance provides speech and imaging solutions to businesses and consumers all over the globe.
They are leaders in the tech world with a strong financial outlook for 2018.
Nuance announced its first quarter results for this year, marking a milestone with an organic growth revenue of 1%–GAAP at $501.6 million and Non-GAAP at $508.8 million–all up from last year.
Gogo, Inc, is a Chicago-birthed and based wireless company that provides in-flight entertainment and internet to foreign and North American commercial airlines.
Gogo has been a competing force for the past five years, earning an AGR (Annual Growth Rate) of more than 30 percent.
Cathay Pacific–a Hong Kong-based carrier–partnered with Gogo in late 2017 to bring in-flight connectivity on its aircrafts.
This partnership gives Gogo a robust presence in the tech world and investors are sure to be drawn in by its newfound appeal.
Microsoft is still a long-standing tech name the world trusts.
It’s innovations in software, hardware, and internet services still dominate in the technological market.
Microsoft’s services also expand in the area of consultation and training with regards to system integration and development.
When you don’t know where to go, go with what you know. Microsoft Corporation is a brand name most households are already affiliated with.
The Bottom Line
The choice to invest will come with reservations. It’s a risk-taking business. But the payoff could be the positive experience you were expecting.
Need more help getting started with investing? Check out this guide to millennial investing.