Tech stocks have largely outgained the S&P 500 in 2019 because the technology sector is one of the biggest drivers of long term growth in the global economy. Investors have been pouring tons of money into this sector and shareholders are up big in this bull market.
There are literally hundreds of tech stocks to invest in but we narrowed the list down to the best tech stocks to buy for 2020. All the companies on the list have strong competitive advantages, a loyal customer base, and plenty of room for long term global growth.
Top Tech Stocks to Buy
The world's largest tech company by market cap is up 49% in 2019 and shares are trading at an all-time high. Apple recently launched their Apple TV+ service and plan to release the first low budget iPhone in 2020. The company has one of most loyal customer bases ever and most Apple consumers will never switch to Android or another service. Things are looking bright for this “fruit” company.
Amazon shares are only up 21% in 2019 but the company's biggest headline is their switch to 1 -day Prime delivery service. Jeff Bezos believes in a long term perspective even though growth has stalled a bit in the short term. Amazon's expansion into food delivery and streaming will help drive more growth in the future. It's still one of the best run companies in the world.
The parent company of Google and Youtube continues to churn out profits in the online tech space. Shares are up 31% in 2019 as Google experiments with new changes to their search engine to keep users on their sie longer. Higher engagement = more ad revenue.
Their cloud software business is performing well and Microsoft is the only competitor to Apple in the operating system wars. Shares are up 35% in 2019 while earnings remain strong and stable.
While there seems to always be negative publicity surrounding the company, it's hard to ignore the consistent revenue and profits Facebook generates from advertising. Total revenue was up 29% in q3 2019 YOY while daily average users peaked to 1.62 billion across all of Facebook web assets.
The stock crossed over the $200 support and looks like it is headed to $300 in 2020.
Disclosure: I own partial shares of Apple, Amazon and Microsoft.
Tarik Pierce is the founder of InvestorTrip.com and regularly contributes articles to this website.
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