We’re nearing the end of the year, and that means you’ll want to know what’s in for next year 2017. The Trump win has everyone trying to figure out what to invest in during his time in office. Will tech take a big hit because of the President-elect? Where can you put your money for growth? If you’ve been good all along then you have your money diversified, but now you want to figure out what to do for your tech stocks. Here’s my best fice for 2017.
1- Facebook (FB)
Who doesn’t know what facebook is these days? Everybody and their grandmother is using Facebook these days, and it might be in ways you never knew about. It’s not all just about getting new “friends” these days. Don’t believe me? Try google any company you know and see if they have a facebook page too. More than likely they have one and they use it to advertise and communicate with their customers.
Analysts are having a hard time keeping up with what Facebook can earn. Facebook keeps beating estimates, and that doesn’t look like it’s changing anytime soon. If I was going to get in I’d look for an entry off some kind of bad news if I get a chance and go with it. I don’t see Facebook anything but higher in the longer term, but if you’re a short term trader you might want to hold off a bit to see how things go once Trump is in office.
One thing is for sure though, when you buy into Facebook you’re buying into Mark Zuckerberg and that should be a great thing. I like to put my tech money behind great leaders.
2- Alphabet (“Google” GOOGL)
Here’s Google ( or now Alphabet) with a couple more great leaders in Larry Page and Sergey Brin. You can’t deny the success they’ve already had, but more importantly you shouldn’t miss the fact that they keep on succeeding in a changing environment.
First it was Google, that started off as an internet search company, but it slowly morphed into more than that and became “Alphabet”. Now they have their hands in just about everything you can think of in tech. People began using mobile devices more so they went off and made the most widely used mobile operating system in the world and put it in everyone’s smartphones. Oh, and have you ever heard of Youtube?
That’s just a couple of reasons why I like Alphabet, but really the most important reason why I like them is because they are very good about adjusting to change. With tech you have to be ready to evolve otherwise you’re going to be left behind. I expect Alphabet to stay ahead of the pack in innovation for 2017 and beyond.
3- Tesla Motors (TSLA)
You might be thinking Tesla is more of a car company than a tech company, but you’d be wrong to put Tesla in the same pool as Ford or others alike. Tesla has another great leader in Elen Musk, but that’s not the only reason why you should invest here.
Tesla is positioned well to be the leader in all things powered in the future. The business has their hands in solar and batteries, and Elon Musk is determined to be the face of your future power needs. In other words, Tesla isn’t just selling vehicles. Right now it’s also involved in the charging stations for the vehicles, and if you try and look into Elon Musk at all you’ll quickly see that he’s the type that likes to shoot for the moon.
I suspect Tesla will be amongst the leaders in tech innovation for the future. I suspect it won’t be long before something “Tesla” is in everybody’s homes just like it’s happened with Google or Facebook. In the short term it might also help that OPEC seems to have made a deal to cut oil production which should in turn raise oil prices.
4- Amazon (AMZN)
I’ll start by saying that I do think Amazon is a bit overvalued right now. However, that being said, I do still think it’s a great choice for growth in 2017. Once again you get great leadership in Jeff Bezos. That’s not all you get from Amazon though.
What once started as a place to find things for sale online has not turned into a tech everything I need company. Music, video streaming, all of your entertainment, all your food needs, all your home needs, you can find it all with Amazon. And they’ll deliver it for free.
Just like all the other great tech companies, Amazon has morphed into whatever it needs to grow, and it continues to do so. Every year Amazon increases its previous Cyber Monday sales, and they just did it again this year. This movement to buy things online isn’t going away anytime soon it seems. Amazon is just going to keep offering us more and more things to spend our money on.
5- Paypal (PYPL)
Paypal finally decided to go out on its own and break from eBay in the summer of 2015, and since then everyone has been trying to take it down with their own payment solution. Tech companies everywhere are doing there best to get a share of the profits. Apple Pay was supposed to take a big chunk of their profits, but it still hasn’t happened. Instead what we’ve seen is that Paypal is growing. It seems that the powerful brand that has been around for years is helping pave the way.
Nobody knows what the future might hold for a company like Paypal, but the growing numbers don’t lie. How about an almost 25% of increased transactions from the previous quarter? It’s safe to say that Paypal is the long shot of the top 5 tech stocks group, but it wouldn’t be crazy to see Paypal give companies like Visa and Mastercard trouble in the near future. Everything is going digital these days, and Paypal is well ahead of the game in digital money transactions. I’d expect them to be a player in 2017.