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Finding Fortune: Unveiling 3 Tech Giants With Untapped Potential

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big tech stocks to run - Stock Alert: 3 Big Tech Names That Have More Room to Run

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Having been the driving forces behind the S&P 500 and the Nasdaq 100, big tech stocks have firmly established themselves in households worldwide.

Despite impressive growth spurts, numerous mega-cap tech stocks are poised for more significant advancements. Packed with catalysts that can propel them beyond market expectations, these stocks are geared to provide lasting value to fresh stakeholders. For investors seeking enticing prospects within seasoned stocks, these substantial tech entities are primed for an upsurge.

Meta Platforms (META)

In this photo illustration the Meta logo seen displayed on a smartphone and in the background the Facebook logo

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Meta Platforms (NASDAQ:META) has recently hit a record high, with the slowdown of 2022 faded into obscurity. With shares having tripled in value over the past year, the company’s revitalized revenue growth and substantial cost reductions have propelled net profit margins beyond 30%.

In the fourth quarter of 2023, Meta Platforms witnessed a staggering 201% year-over-year growth in net income and a 25% year-over-year surge in revenue. This impressive net income surge paved the way for the company’s inaugural dividend, set at an annualized $2 per share.

Anticipate numerous years of dividend increments for Meta Platforms. The company’s robust cash flow will not only gratify income-seeking investors but also sustains growth and ensures profitable returns for steadfast stakeholders.

The company’s core platform shows underlying resilience, with Facebook’s daily active users surging to 2.11 billion, a 6% year-over-year rise. Similarly, the monthly active user base grew by 6% year-over-year, reaching 3.98 billion. Sustained growth and increased average revenue per user are poised to drive the stock further along its upward trajectory.

Amazon (AMZN)

Closeup of the Amazon logo at Amazon campus in Palo Alto, California. The Palo Alto location hosts A9 Search, Amazon Web Services, and Amazon Game Studios teams. AMZN stock

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Amazon (NASDAQ:AMZN) presents a diverse investment portfolio encompassing e-commerce, cloud computing, artificial intelligence, advertising, and other sectors. With a near 100% appreciation in stock value over the last year, a landmark fourth quarter suggests further growth is on the horizon.

During this period, Amazon hit a colossal milestone with sales reaching $170.0 billion for the first time, marking a 14% year-over-year upswing propelled by international expansion. Domestic sales showcased robust growth at 13% year-over-year, while international growth surged by 17%. Amazon Web Services witnessed a 13% increase in sales over the past year, constituting 14% of the company’s total revenue.

CEO Andy Jassy exuded optimism about Amazon’s record-breaking holiday shopping season, advancements in artificial intelligence, and the burgeoning advertising services sector.

While Amazon delves into numerous growth avenues, its e-commerce stronghold remains a pivotal driver for further gains. Seizing the lion’s share of a projected 9.79% compound annual growth rate in the e-commerce industry till 2029, Amazon is poised to maintain its leadership in the sector.

Alphabet (GOOG, GOOGL)

Alphabet Logo

Oft-described as the final piece in the digital triumvirate alongside Meta Platforms and Amazon, Alphabet remains a stalwart in the tech landscape

The Rise and Resilience of Alphabet Inc. Amidst the Google Stock Split

Alphabet’s Valuation Amidst Tech Industry Turmoil

Amidst a tech stock market where valuations seem to defy gravity, Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) stands out with its reasonable P/E ratio of 23. Although recent missteps like the Gemini blunder have captured attention, this setback is a mere blip that is set to pass swiftly.

Google’s Revenue Growth and Profitability

Beyond the noise of the Gemini incident, Alphabet’s strong business fundamentals shine through. Google’s advertising and Google Cloud segments continue to drive impressive revenue growth. Notably, Google Cloud recently reached profitability, positioning Alphabet for enhanced net profit margins and financial resilience.

Financial Performance and Strategic Investments

The fourth quarter of 2023 saw Alphabet’s revenue surge by 13% year-over-year, accompanied by a remarkable 52% year-over-year increase in net income. Such robust growth reflects Alphabet’s adept cost management strategies, reminiscent of Meta Platforms’ own efforts.

Artificial Intelligence and Future Prospects

Alphabet’s rich legacy in leveraging artificial intelligence to advance its core offerings, from search engine enhancements to cloud platform innovations, underscores its long-term resilience and adaptability. As the company navigates through current challenges, the strategic application of AI will bolster its competitive edge and position it favorably among mega-cap tech corporations.

At the time of writing, Marc Guberti disclosed a long position in GOOG. The views expressed are solely those of the author and align with the InvestorPlace.com Publishing Guidelines.

Marc Guberti, a finance freelance writer at InvestorPlace.com and host of the Breakthrough Success Podcast, has contributed to esteemed publications such as U.S. News & World Report, Benzinga, and Joy Wallet.

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