Three Big Tech Companies to Invest, Instead of Facebook (FB)
It has been 2 problematic days for shareholders in social media network Facebook (NASDAQ: FB). The firm’s negative second-quarter results made Facebook stock to create its way over twenty percent lower at the end of trading on Wednesday. That was the company’s biggest loss since 2012. The Facebook catastrophe has also affected other large tech stocks significantly, so all heavy hitters of the industry suffering from the fall.
For all those who did not expect such low income, Facebook fall is a too large pill to swallow. But it is also significant to see the better side and accept the advice of finance guru Warren Buffet. “You can be greedy when the market is afraid, but be afraid when the market becomes greedy.
It is a good time to buy some of those big tech stocks because they lost a few percentages in value just because of Facebook’s shortcomings. The company’s poor management and unclear future may cause you to move far away from Facebook stock. But lucky for you, there are plenty of fishes in the sea, and you can certainly find some other big tech brands to invest in.
One of those stocks that might be a good replacement is certainly Micron Technology (NYSE: MU). This memory chip producer has been always sending on quarterly stock reports and investors have preserved their soft and remained wariness on the stock because of concerns about a trade war with China and overall industry issues.
In the past, all chip producers have had to fight against the problems of working in a cyclical industry. But with much greater demand for various technology products, the bad sessions that chip producers faced are disappearing now. The hottest technology topics such as artificial intelligence, self-driving vehicles, and cloud computing demand better, faster and bigger memory cards. It means the demand will stay strong for such products in the future as well.
The concerns, which appear to be unsupported in these modern days, have saved Micron Technology stock from being too expensive. The stocks sell at only 4.5 times of its estimated profits, a big discount to other companies in the same sector. However, this stock is not going to be overly cheap for long, so you should put it on your purchase list as soon as possible.
The second company on this list that currently has underestimated stock is certainly Intel Corporation (NASDAQ: INTC). Its stock did not feel too big loss succeeding Facebook’s poor results, but the company’s share price has been floating from the low to mid 50’s for the last several months. The investors have not been sure about the stock’s potential to grow, and trades have been lower due to the fact.
It is certainly correct that Intel Corporation’s move into getting more information-centric company has pulled it in direct battle with Advanced Micro Devices (NASDAQ: AMD), regardless of the fact that there is definitely enough space for two similar businesses in the sector. Boost in the tech industry during the next ten years is most likely to create significantly higher demand for its products, so despite it is valuable pointing out Advanced Micro Devices as a danger Intel seems strategically and financially ready to operate in a competitive environment.
Intel Corporation has a few catalysts bringing up that might push the company’s stock price higher. The second quarter results seem promising. Regardless of the concerns about Advanced Micro Devices’ advances, Intel seems capable to deliver and that will probably move the stock price higher. And the firm is going to announce new CEO, which might pull up the stock higher.
Alhpabet Inc (NASDAQ: GOOGL) is also one of the companies with good potential for growth. Facebook’s fall has affected FANG stocks seriously, and that explains why Alphabet lost closely 2% of its total worth overnight. These losses do not have too much in common with the company’s growth potential, so it is wise to expect the stock rise soon.
Alphabet had great Q2 results earlier, but the revenue arriving in higher than expected while the traffic costs are notably lower. The company had a chance to develop its cloud computing, hardware, the mobile app as well as its advertising business. It would be a wise decision investing in this stock because it is going to boost.