The technology sector is broad, comprising wireless providers, semiconductor companies, software developers, gadget makers, cloud computing providers, streaming services, payment gateways, etc. Any firm which is selling services or products heavily infused with the latest technology is from the tech sector. This industry includes firms with huge market capitalization such as Tesla, Microsoft, Apple Inc., PayPal, Amazon, and many more. The Coronavirus has been a relatively mixed bag for the tech sector. For instance, the business of Amazon has increased as customers have moved to online purchasing. The demand for cloud computing services, software, gaming devices, etc has increased the sales volume of Microsoft as people are staying at home more than before.
On the other hand, the majority of the tech firms are not gaining profit margins; it is not possible to use the price-to-earnings ratio to analyze them. The growth of revenue matters more for new firms – if you are planning to invest in anything unproven, you need to ensure that it contains solid prospects for growth. Eventually, the best tech stock is that which trades at a highly reasonable valuation provided its growth prospects. This is difficult to find out the growth prospect accurately. If you are expecting that your earnings will reach the sky in the next few years, then paying a premium for the best stock could be sensible. But if you are unsure about the growth prospects, then this investment might face a failure. We are going to share the list of best tech stocks to invest in as shared by Insider Monkey. PayPal Holdings, Inc. is the digital payment transfer business that is leading the list of stocks to invest in right now. Though 3% of the stake is sold by the hedge fund manager in the latest quarter for capitalizing on a 100% rally of share price, still, Paypal is the biggest stock holding company. According to the report of Insider Monkey, some other hedge fund managers are also showing bullish behavior on PayPal.
Tesla, Inc. is the biggest electric vehicle maker in the world and is amongst the best stocks to invest in at present as highlighted in the report of Insider Monkey. The company is at profit due to the 800% stock price rally of Tesla stock. This indicates that hedge funds are highly bullish on this tech company stock. You can check 10 Best Tech Stocks To Invest In Right Now for knowing more about the best stocks.