3 leading technology stocks that could help you enrich yourself in retirement

0


The best way to get rich through the stock market is to buy into solid, growing companies and then hang on – for years, if not decades. Yes, you may have doubled or tripled your money in an action like Netflix Where Costco, but if you subsequently sold your shares, you may not have been able to multiply the value of your investment by 10 or even 20 times.

So here are three companies to consider investing in and sticking to for many years to come. Insane riches are not guaranteed, but you will have a good chance of long term success.

Image source: Getty Images.

1. Meta-platforms

Don’t think you don’t know Meta-platforms (NASDAQ: FB) – it’s your old Facebook friend, sporting a new nickname to reflect its reach beyond the massive social network, including the Instagram platform, the WhatsApp messaging service and its Oculus VR virtual reality technology – and maybe be even including cryptocurrency operations.

The company has grown into a more than $ 900 billion business, and despite its massive size, it continues to grow rapidly: In its third quarter, released at the end of October, the company recorded 35% revenue growth from ‘year after year. Monthly active users only increased by 6%, but that seems pretty reasonable considering that it has nearly three billion of them – in a world of nearly eight billion people, over one billion of whom live in poverty.

The company is optimistic about expanding – and monetizing – video offerings on its social platforms, and its other efforts also look promising, such as augmented and virtual reality. Better yet, the stock price is quite attractive, with a recent price-to-earnings (P / E) ratio in the mid-1920s, well below its five-year average of close to 31.

2. Microsoft

Microsoft (NASDAQ: MSFT) is also a compelling long-term proposition for your portfolio. Whatever you associate with Microsoft, there are probably some valuable assets you might forget: It encompasses the super-dominant Windows operating system, for starters, as well as the widely used suite of Office 365 productivity software. Azure form is a major player in the cloud computing world, with recent revenue growth of 45% year-over-year. (Microsoft’s overall revenue grew 22% year-over-year in its first quarter of fiscal 2022.) Meanwhile, Microsoft also includes Surface devices, Xbox gaming systems, and more, even Skype and LinkedIn.

The company even pays a dividend, which not all fast-growing tech companies do. Its recent 0.74% dividend yield may seem meager, but note that it has grown at an annual rate of 10% over the past five years. The company also rewarded its shareholders by repurchasing shares. As the company noted, “Microsoft returned $ 10.9 billion to shareholders in the form of share buybacks and dividends in the first quarter of fiscal 2022, an increase of 14% from the first quarter. for fiscal year 2021. “

Microsoft stocks don’t appear to be as valued as those of Meta Platforms, so you may want to consider adding the company to your watchlist, pending a takedown. Or buy into the company in increments.

Person counting a wad of money smiling.

Image source: Getty Images.

3. Alphabet

Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) is the parent company of Google and recently reached a market value of nearly $ 2 trillion. Despite this massive size, the company can still grow at a good pace: in the third quarter, revenue rose 41% from a year ago levels, with net profit up 68%.

Like Meta Platforms and Microsoft, Alphabet also has a handful of diverse and extremely profitable companies. There is of course the Google search engine, which generates a large portion of the company’s revenue through advertising. Alphabet also owns the widely used Android mobile operating system, along with YouTube and a growing cloud computing service, not to mention the Google Play store, smart thermostat maker Nest, and Fitbit, among others. Alphabet is also a longtime developer of artificial intelligence technology, which it uses in its search engine and elsewhere.

With a recent P / E value close to 29, below its five-year average of 34, Alphabet appears to be valued well at recent levels, especially for long-term investors.

Any or all of these three growing giants should help you build the wealth you need in retirement, so consider them for your long-term portfolio. Try to keep them for at least five years, but 10 or 20 years could prove to be much more profitable. Follow them over the years, of course, to make sure their future still looks very bright and profitable.

This article represents the opinion of the author, who may disagree with the “official” recommendation position of a premium Motley Fool consulting service. We are motley! Challenging an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.


Share.

Comments are closed.