2 Tech Stocks For The Long-Term

High-growth tech stocks have had to bear the consequences of the Federal Reserve’s aggressive rate hikes since last year. Amid concerns of a recession, most tech stocks have suffered a correction in their share prices due to fears of softening demand.

However, with continued digital transformation and the growing interest in AI, the tech industry is well-positioned to grow.

Earlier this year, Fed Chair Jerome Powell said the “disinflationary process” had begun. However, inflation still remains above the central bank’s comfort level, as evidenced by February’s CPI report.

The Fed has indicated that it intends to hike rates higher than previously predicted.

Although the recent bank failures are likely to stop the Fed from undertaking a bigger rate hike at the policy meeting, it is expected to return to its hiking spree once the banking crisis eases.

However, that should not make investors stay away from quality tech stocks.

Wedbush analyst Dan Ives believes that cost-cutting by major tech giants will likely show improved profits this year. The recent banking crisis made investors count on reliable tech stocks, as is evident from the tech-heavy Nasdaq Composite’s 13.3% increase year-to-date and 3.2% gain over the past month. According to Gartner, worldwide IT spending is expected to rise 2.4% year-over-year to $4.50 trillion in 2023.

Several technical indicators look positive for Microsoft Corporation (MSFT) and Salesforce, Inc. (CRM), so it may be worth investing in these stocks now.

Microsoft Corporation (MSFT)

MSFT develops, licenses, and supports software, services, devices, and solutions worldwide. The company operates in three segments: Productivity and Business Processes, Intelligent Cloud, and More Personal Computing. It has a market capitalization of $2.03 trillion. Continue reading "2 Tech Stocks For The Long-Term"

Best Growth Stock? One To Watch Now

Twilio Inc. (TWLO) enables developers to build, scale, and operate real-time communications within software applications through a cloud communication platform and a customer engagement platform. The company operates both in the United States and internationally.

Over the past three years, TWLO’s revenues have increased at a 50% CAGR. Its total assets increased at a 34.6% CAGR during the same time horizon.

TWLO has adopted sweeping changes to improve the efficiency of its execution and accelerate its path to profitability. On February 13, the company announced its decision to reduce its workforce by approximately 17% to drive meaningful cost savings. To rationalize expenses further, on December 9, 2022, it announced its voluntary delisting from the Long-Term Stock Exchange (LTSE) to remain solely listed on the NYSE.

TWLO has also announced that, moving forward, it will operate two separate business units: Twilio Communications and Twilio Data & Applications. This strategic realignment enables Twilio to execute each business's key priorities better.

TWLO’s management has expressed its confidence regarding the effectiveness of the abovementioned changes by announcing the authorization of a share repurchase program of up to $1.0 billion of its outstanding Class A common stock.

TWLO’s stock has gained 17.1% over the past month to close the last trading session at $73.88.

TWLO is trading above its 50-day and 200-day moving averages of $57.86 and $70.99, respectively, indicating an uptrend.

Here is what may help the stock maintain its performance in the near term.

Improving Financials

During the fourth quarter of the fiscal that ended December 31, 2022, TWLO’s revenue increased 21.6% year-over-year to $1.03 billion, while its non-GAAP gross profit increased 19.9% year-over-year to $517.78 million. Continue reading "Best Growth Stock? One To Watch Now"

1 No-Brainer Gaming Stock For 2023

After witnessing unprecedented growth during the pandemic, videogame publishers are witnessing a reversion to the mean with a reversal to pre-pandemic lifestyles amid macroeconomic uncertainties driven by inflation and increased borrowing costs due to interest-rate hikes.

However, despite the softened demand in the broader industry, incumbents, like Activision Blizzard, Inc (ATVI), have cornered pockets of growth with proven blockbusters such as Call of Duty, World of Warcraft, and Candy Crush commanding a greater share of gamers’ pinched pockets.

The gaming giant looks to merge with Microsoft Corporation (MSFT) this year. It reported record net bookings for the holiday quarter and 2022, exceeding analysts’ expectations.

With continued investment in growing its development teams, robust product pipeline, live game opportunity, and ongoing focus on operational discipline, ATVI seems on course for another year of outperformance.

Could Generative AI rekindle the market’s ebbed interest in the metaverse?

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ATVI has dipped marginally over the past month to close the last trading session at $76.25. The stock is trading above its 50-day moving average of $76.10 and almost at par with its 200-day moving average of $76.40, indicating an uptrend.

Here is what may help the stock maintain its performance in the near term. Continue reading "1 No-Brainer Gaming Stock For 2023"

2 High-Dividend Stocks and How to Trade Them

Dividend investing has always been a great strategy to ensure a steady income generation irrespective of a stock's price movement.

Dividend-paying companies are mostly stable, profit-earning companies and these stocks are especially popular among those in or nearing retirement.

Of course, who doesn’t like having a little extra cash on hand? In fact, owning dividend stocks can help ensure returns from two sources, income from dividends and from share price appreciation.

So, in basic terms, a dividend is a payment made by a company to its shareholders. Mostly the dividend is quarterly, with the board of directors deciding the exact timing of the dividend and the size, which is primarily determined based on the company’s earnings and cash position.

Types Of Dividends

Cash dividends: This is the most common way companies pay dividends. The cash is directly paid into the shareholder’s account.

Stock dividends: Companies pay investors additional shares of stock instead of distributing any cash.

Dividend reinvestment program (DRIP): In this program, investors can choose to reinvest dividends received back into the company’s stock, often at a discount.

Special dividends: A company might offer a special dividend, which is a non-recurring distribution.

Preferred dividends: Preferred stock is a type of stock that functions less like a stock and more like a bond. Dividends on preferred stock are generally fixed, unlike dividends on common stocks.

How Do Dividend Stocks Work?

So, to receive dividends on a stock, you simply need to own shares of the company, and the cash will automatically be deposited into your account when the dividend is paid. Typically, companies pay dividends to share the firm’s profits with its shareholders. Continue reading "2 High-Dividend Stocks and How to Trade Them"

3 Stocks You Can't Go Wrong With

The stock market started the year on a positive note after a year filled with macroeconomic and geopolitical challenges.

The rally was driven by the Federal Reserve’s smallest rate increase since the beginning of the monetary policy tightening in March 2022 and Fed Chair Jerome Powell’s acknowledgment that inflation was showing encouraging signs.

However, investor sentiment has taken a hit lately as minutes from the central bank’s monetary policy meeting indicated that the rate hikes will not end anytime soon. The Fed officials believe interest rates need to increase and stay elevated until inflation reaches 2%.

The officials’ resolve was backed by the 0.6% sequential and 5.4% year-over-year rise in the Personal Consumption Expenditure (PCE) and the hotter-than-expected jobs report. The market expects the Fed to raise the fund rate beyond 5% this year.

However, JPMorgan CEO Jamie Dimon believes a soft landing is “still possible.” Goldman Sachs believes the chances of the American economy slipping into a recession are now just 25%, down from its previous estimate of 35%. Moreover, President Joe Biden recently said he believes the U.S. economy will not fall into a recession this year or next.

Given this backdrop, it could be wise to make the most of the strong uptrend in fundamentally strong stocks, The Hershey Company (HSY), Acuity Brands, Inc. (AYI), and Flowers Foods, Inc. (FLO).

The Hershey Company (HSY)

HSY engages in the manufacture and sale of confectionery products and pantry items. The company operates through three segments: North America Confectionery, North America Salty Snacks, and International.

It offers chocolate and non-chocolate confectionery products; gum and mint refreshment products, including mints, chewing gums, and bubble gums; pantry items, baking ingredients, toppings, beverages, and sundae syrups; and snack items. Continue reading "3 Stocks You Can't Go Wrong With"