Tech Stocks Poised To Have Best Year Since 2009
Shares of technology companies are poised to increase in value and surpass peak levels from 2009.
Investors are avidly pouring money into a wide range of tech firms. There are the well-known FAANG companies that comprise Facebook, Amazon, Apple, Netflix and Google, which continuously attracted the attention of investors. However, only Apple and Google’s parent company, Alphabet, have been able to surpass peak levels in share value.
Additionally, investors are looking at other companies that make up the technology sector. Such companies include semiconductor manufacturers and companies that make the machines that make chips.
“They are the companies that are enabling the semiconductor manufacturers to make denser chips with more transistors on them,” said John Freeman, vice president of equity research at CFRA.
Technology companies that are focused on facilitating electronic payments have been doing well and have caught the attention of money managers.
“If you would have told me 20 years ago I was going to pull out my Visa card to pay a one-dollar parking meter on a square in Madison, Wis., I’d have said you’re nuts, but now that’s the only compensation they accept,” said Tom Plumb, president and portfolio manager at Plumb Funds.