The stock market is about making money, and there’s one sector of Wall Street that offers you the best chance at hitting it big like a winning lottery ticket – technology.
But tech stocks also happen to be some of the most difficult to predict. Why? Because many tech companies aren’t exactly what you’ve always thought they are.
Here’s how you should really look at tech companies if you want that lottery payout…
OK, let me start off with an example of what I mean when I say that many tech companies aren’t exactly what you’ve been told…
Take AT&T (T) – it’s a telephone company, right? AT&T commercials are about selling phones, aren’t they?
Not precisely. You should look at AT&T as a data deliverer, because that’s really the core of what this company has become. AT&T gets the Internet to you, and we all know how we’re rapidly becoming more and more dependent on the Internet…
What about Intel?
Intel is the PC company, right? It certainly used to be. But as the world has evolved, so has Intel (as all good companies do).
The world is now basically running on servers, which are the devices that manage network resources by storing files, processes database queries, and manages network traffic. “Server farms” are becoming more and more important because of that fact. And Intel basically provides a huge portion of those.
You see, it’s not about the brand or the commercials or the way your parents knew a tech company. It’s all about what these companies have become and what they’ll be able to bring to the world in the future.
And on another note, don’t always be dumping your money into the flashy, new tech gadgets, especially in a market like this one.
Sure, they can fun and exciting in the beginning, but they also lack staying power many times. Look at GoPro (GPRO). GPRO shot up all the way near $100 a share on hype, but now it’s fallen down to $30 per share…
Instead, invest in the tech companies who will positively affect the way we live going forward. And look for companies that already have relationships with other big companies that can sustain them.
