What are the top technology stocks? Here’s an overview of the 10 top companies listed in the order of market cap that investors may want to consider.
One of the top performing sectors this year under the S&P 500 has been technology and, according to research from UBS, the industry remains an ‘exciting’ option for investors in 2018 and beyond with a number of top technology stocks to choose from.
According to the research report, 2017 was a massive year of growth for tech with 39 percent in annual total returns–the most out of any other industry on the S&P. What’s more, the tech market has consistently posted positive returns ever since the 2008 recession.
Forrester predicts the global tech market will reach US$3 trillion in 2018, growing by four percent with the firm predicting that improving economies will drive global tech market expansion.
On that note, below is a list of the top technology stocks in terms of market cap size. The companies listed below span a wide range of verticals in the industry, from cloud services to online video streaming to social media favorites. All numbers and figures below are current as of market close on July 16, 2018.
1. Apple (NASDAQ:AAPL)
Market cap: US$938.35 billion; current share price: US$190.91
First on our top technology stocks list is Apple. The company shot to fame with the Macintosh in 1984, Apple’s hardware portfolio has expanded to include iPad, Mac, Apple Watch and Apple TV. Furthermore, it’s services also include App Store, Apple Music, Apple Pay and iCloud.
Some of its most recent news came on July 12 when it updated its MacBook Pro line up with newer processors from Intel (NASDAQ:INTC) and also support for 32GB of memory. The company claims that the new line up is up to 70 percent faster based on the user configurations as compared to previous generations.
2. Amazon (NASDAQ:AMZN)
Market cap: US$884.32 billion; current share price: US$1822.49
Founded in 1994, Amazon has evolved from its online retail shopping to become a tech giant through its Amazon Web Services (AWS) platform. AWS offers services for computing, storage, databases, networking, analytics, machine learning and artificial intelligence among others.
At the end of June, Amazon announced that Formula One Group (NASDAQ:FWONA; FWONK) selected AWS as its cloud and machine learning provider. The world’s popular motorsport competition will work with AWS to enhance its data tracking systems and digital broadcasts.
3. Alphabet (NASDAQ:GOOG)
Market cap: US$822.25 billion; current share price: US$1183.86
Holding company of internet search giant Google, Alphabet operates through multiple brands with its portfolio of companies ranging from investments to acquisitions. Some of the companies under Alphabet include Calico, GV, Capital G, Verily, Waymo, X and Google Fiber. As such it’s no surprise that Alphabet ranks high on the top technology stocks list.
Founded in 1998, Google quickly became a household name with numerous products under its vertical which include Google Pay, Google Cloud, Android, Google Maps, YouTube among others.
In July, Google announced further advancements of its Google Pay system which now lets users pay friends and save concert tickets and boarding passes. Another highlight of the recent update is the rollout of the desktop version of Google Pay where users can now manage info on a desktop or personal computer.
4. Microsoft (NASDAQ:MSFT)
Market cap: US$806.04 billion; current share price: US$104.91
Founded in 1975 with its headquarters in Redmond, Microsoft is well versed in hardware and software t Its hardware lineup consists of its flagship Surface brand that covers a wide range of price points which pits it against its arch rival Apple.
The software portfolio, however, has seen a strong focus from the company in recent years as it has an operating systems for computers, phones and servers. Furthermore, Microsoft has been targeting business users with its productivity suite that includes Office and Cloud segments.
On July 9, Microsoft announced a new product to its Surface lineup targeting students and iPad users called the Surface Go.
5. Facebook (NASDAQ:FB)
Market cap: US$599.85 billion; current share price: US$207.23
Social media giant Facebook occupies the fifth spot on our top technology stocks list with its product suite connecting more than a billion users across the globe.
The company’s products include Facebook, Instagram, Messenger, WhatsApp and Oculus. As of March 31, 2018, the daily active users of Facebook were 1.45 billion while its monthly active users 2.20 billion.
Recently, Instagram joined Messenger and WhatsApp in hosting billions of users each month on its platform. Further, the company launched IGTV targeting content creators who predominantly use YouTube for broadcasting their work.
6. Alibaba Group (NYSE:BABA)
Market cap: US$488.41 billion; current share price: US$190.35
Alibaba Group operates online and mobile marketplaces in retail and wholesale trade.The company’s core products include the likes of e-commerce, cloud computing, digital media and entertainment.
Headquartered in Hangzhou, China, Alibaba group operates in over 200 countries across the globe. It has to be noted that at the closing date of its IPO on September, 19, 2014, the company raised US$25 billion, which was the highest IPO at the time.
The company in July unveiled a concept store in Hong Kong that showcased a new model for the digitization of retail fashion experience by empowering the store with artificial intelligence (AI). The store offered the shoppers a personalised recommendations based on trends and insights gathered by Alibaba ecosystem
7. Intel (NASDAQ:INTC)
Market cap: US$242.37 billion; current share price: US$52.01
Headquartered in Santa Clara, the company shot to fame in 1968 with the processors that powered various computing devices..
The company designs, manufactures and sells various computing products that include core computing devices, networking, data storage and communication platforms.
On July 12, the company announced that it will acquire eASIC, designer of programmable chips with 19 years of experience in the field. Intel said that the addition of eASIC will help it to meet the consumer need of features, performance, cost power and product life cycles. Further, the company said that the combination of the two will provide consumers with more choice at lower development cost.
8. Cisco (NASDAQ:CSCO)
Market cap: US$199.87 billion; current share price: US$42.50
Ranked eighth on our top technology stocks list is a company headquartered in San Jose, California and a company best known for its security products and services to detect and stop threats.
Cisco’s products are tailored for a host of activities and services which includes cloud, email, network, router among other things.
In June, Cisco announced that Walt Disney Studios has selected Cisco as an innovation partner of StudioLab, a initiative from Walt Disney Studios focused on cutting edge technologies of the future.
9. Oracle (NYSE:ORCL)
Market cap: US$192.93 billion; current share price: US$48.46
Oracle, a company that’s primarily focused on cloud, hardware and services, has been in the business for over three decades and is ninth on our top technology stocks.
The company’s cloud platform offers complete SaaS application suites for enterprise resource planning and human capital management along with database platform as a service. Oracle also offers infrastructure as a Service (IaaS) from data centers throughout Americas, Europe and Asia. Oracle’s hardware segment comprises of products that ranges from Oracle Engineered Systems, servers, storage and other industry-specific hardware.
In July, the company announced that many businesses around the world including Arab Jordan Investment Bank, CargoSmart and Intelipost are among early adopters of the Oracle Blockchain Cloud Service. The service from Oracle which rolled out on July 16 provides customers with a development platform to build their own networks and integrate with the company’s SaaS or any other third party application.
10. Netflix (NYSE:NFLX)
Market cap: US$174.09 billion; current share price: US$400.48
Last on our top technology stocks list is Netflix, an internet service company with over 125 million subscribers. The company is engaged in streaming services and operates in 190 countries.
Founded in 1997, Netflix began expanding its service in 2010 with roll out of its service to Canada and Latin America. The internet streaming company also introduced Netflix Originals, shows that are produced, co-produced or distributed by Netflix.
In July, Netflix further advanced its download feature with the launch of Smart Downloads which automatically downloads the next episode of a TV show as soon as a user finishes watching a downloaded episode. The download feature of Netflix is popular in countries with spotty internet access and with users who are commuting and travelling.
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Securities Disclosure: I, Bala Yogesh, hold no direct investment interest in any company mentioned in this article.