3 Tech Firms to Invest in 2017
In the days and weeks that followed the election of Donald Trump to the presidency, many tech stocks began to lose ground because of uncertainty surrounding his policies and how they might affect a few of the biggest tech companies. A number of those big companies saw shares selling off at near record prices for this time of year and in this particular industry. For example, Google (GOOGL) was down 0.71% while Netflix (NFLX) was down 0.62% and that is just two of four that saw a huge sell-off movement. Amazon (AMZN) was down 0.46% while Facebook (FB) was down 0.58%.
Even so, this isn’t indicative of the entire industry and investors need not be wary of buying into technology, it’s a matter of what kind of technology is expected to skyrocket in 2017. Before looking at tech firms to invest in this year, it might be wise to look at the type of technology that is seen as safer than the Internet giants mentioned above. Again, it all revolves around what President-Elect Trump’s policies will mean to Silicon Valley, but there is still a corner of the industry that is rapidly growing and thus, a good place to sink some investment capital.
Semiconductor Stocks Poised for Rapid Growth
While companies such as Amazon, Google, Netflix and Facebook have been seen as safe investments simply because of how big they are on a global level, this is the kind of concern that investors have due to questions raised by comments made during Trump’s campaign. Instead, investors are looking at stocks set to soar because of the type of technology they are and semiconductors are huge at the moment. Why semiconductors?
Consider what they are and how important they are in literally all technology. Think of those little chips that are utilized by every type of device imaginable and then think of Samsung, a tech industry giant by anyone’s standards. Samsung was a pioneer in putting flash memory into those little chips, those semiconductors, after which a number of other device manufacturers followed suit. Why semiconductors? Because of the broad range of uses across all corners of the industry and because they are necessary to digital technology, plain and simple. Without semiconductors no technology would work.
You Can Feel Secure Investing in Cyber Security
One of the major benefits of all those connected devices we rely on is that we can literally communicate with anything and everything, automate most things and control most things, and all because of the Internet. However, just as we have major benefits from all that connectivity, we are also put at great risk at the very same time. Hackers abound and so, cyber security is already huge and getting bigger by the day. If you are looking for a sound investment, look towards any corner of the cyber security industry and you have just struck gold.
Consider the financial industry for a moment and just how easy it is for those companies that don’t have state-of-the-art cyber security in place, layer upon layer of it. ETX Capital investment firm suggests investing in up-and-coming cyber security firms for a good ROI. Imagine getting in on the ground floor of a company that develops an impenetrable wall, making it impossible for nefarious entities to access your data or cause havoc on your mainframe. The potential for profit is enormous and coming on the heels of the ‘Russian hacks’ in the recent presidential election, the entire world is focused on keeping data and communications safe from would-be hackers.
Consider These Three Tech Firms in 2017
Now that you understand just how big semiconductor technology and cyber security are currently and going forward into the new year, it’s time to look at a few companies to keep your eye on in 2017. These are just suggestions on the type of technology that is going to skyrocket and by no means a sales pitch to invest in these exact companies. Just consider how each is performing and you will understand why these technologies are poised for rapid growth.
1) Rapidly Growing Cyber security Firm – Palo Alto Networks
Speaking of building impenetrable walls, what about Palo Alto Networks, obviously a California tech firm that is growing at four times its previously projected rate? This company specializes in security systems which are state-of-the-art and has a focus on what is being called ‘next generation firewalls.’ If a company needs that extra level of protection for their infrastructure, Palo Alto Networks (PANW) is a viable option as they are expected to expand their current revenue by 31 percent which is a tidy little profit, wouldn’t you say?
2) Another Cybersecurity Firm to Look at – Check Point Software Technologies
Trading as CHKP, Check Point Software Technologies is an Israeli concern that sells a bit lower than Palo Alto Networks but has been around since long before the dot com explosion in the early 1990s. This is a company that is touted as being ‘shareholder friendly’’ and for more than 13 straight years running has even bought stock back from shareholders, which is nice to know if you ever want to get out quickly for any reason.
3) LAM Research for a Sound Investment in Semiconductors
Although LAM Research (LRCX) has already grown by 35% in 2016, it is still a very safe investment going forward. This company is in the semiconductor industry although not directly a manufacturer of semiconductors. Rather, LAM makes the technology that is used by companies like Samsung, mentioned above, when putting flash memory into those semiconductor chips. Any aspect of the semiconductor industry is a sound investment if the company is stable. Looking for a bit of risk with the potential to net a bigger ROI? Check out semiconductor startups that don’t have a track record yet but perhaps have developed cutting edge technology that will set the world of technology on fire.
These are just three examples of tech firms to keep your eye on in 2017. Just remember that industry giants like Google, Amazon, Netflix and Facebook have lost ground since the elections and at this time it is unclear whether or not they will rebound. Even so, although they are huge, so while not expected to grow rapidly, they are not expected to go anywhere any time soon either.
Your takeaway in all this is simply to remember to look for semiconductor technology and/or cyber security. These two corners of the tech industry are in great demand, therefore, this type of firm should do well in the coming year and beyond. They should realize a better than average growth rate. That’s what you need to know.