In the face of prevailing inflationary woes, there are promising prospects for the U.S. economy. The unexpected adaptability of consumers to elevated prices suggests an increasing proficiency to acclimate to the altered status quo. Moreover, despite the gradual route to attaining the Federal Reserve’s inflation objective, robust economic expansion is on the horizon. As the economy maintains its upward trajectory, these three tech stocks stand out for obtaining substantial returns for investors.

Netflix Flickering Bright (NFLX)

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Netflix (NASDAQ:NFLX) enthralls as an entertainment provider rendering a subscription video-on-demand streaming service. In Q4 2023, Netflix astounded analysts by reporting a 12% year-over-year revenue surge and robust expansion in operating margins. Additionally, the company flaunted 260.8 million paid subscribers, effortlessly surpassing Wall Street predictions and setting new service benchmarks. Fears of profitability concerns stand debunked as Netflix exhibits a leveraged free cash flow margin of 57.48%, considerably outstripping the sector median of 7.81%. Gazing ahead, the firm anticipates Q1 2024 EPS to scale to $4.49, eclipsing analyst prognoses of $4.10.

As the streaming domain ramps up competition, Netflix strategically maneuvers to gain an upper hand. Notably, the service recently disclosed its plan to commence streaming WWE’s flagship program “RAW” in the upcoming year. This groundbreaking 10-year, $5 billion pact represents a monumental foray into live programming. The management aspires that broadening the entertainment repertoire will fuel new subscriber influx. An additional bonanza for the company springs from the advent of its advertising-based scheme. While not pegged as the primary revenue driver for 2024, this colossal prospect is immensely scalable and will instigate subscription upsurge. These factors position NFLX as one of the choicest tech stocks to secure.

Microsoft Commands the Universe (MSFT)

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Microsoft (NASDAQ:MSFT) holds its ground as a software architect, churning out software, devices, and services. Garnering a valuation of $9.48 trillion in 2022, the global information technology market is poised to hit $17.74 trillion by 2028, marking an 11% compound annual growth rate. The driving force behind this expansion is the burgeoning appetite for digital solutions and technology across both consumer and business domains.

In Q2 2024, Microsoft unfurled revenues amounting to $62 billion and a net income of $21.9 billion, recording growth of 18% and 33% year-over-year, respectively. The company also enjoys a leveraged free cash flow margin of 25.78%, outpacing the sector median of 9.1%. Notably, the previous quarter witnessed a 30% year-over-year upswing in revenue from Azure and other cloud services, largely ascribed to the burgeoning deployment of artificial intelligence. This uptick signifies the sustained buzz around AI technologies and Microsoft’s vanguard position, courtesy of its alliance with OpenAI.

As Microsoft charts its course forward, a substantial income boost is in the offing, spurred by the fervent demand for Copilot, its AI-driven assistant freshly launched into the world. Indeed, on the latest earnings call, CEO Satya Nadella divulged that Copilot had already lured 1 million users a mere 3 months post-launch. Microsoft is poised for substantial monetization owing to the ballooning demand for AI wares. If the company capitalizes on this opening, growth will escalate, fueled by the forceful tide of impactful AI endeavors.

GoDaddy Gyrating Upwards (GDDY)

GoDaddy’s Strong Push Impresses Investors

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GoDaddy’s Financial Triumph

GoDaddy (NYSE: GDDY) showcased an exceptional performance in Q3 2023, with a revenue of $1.07 billion, signifying a year-over-year increase of 3.53%. The company’s net income also experienced a noteworthy growth of 30.96%, amounting to $130.7 million. Moreover, the diluted earnings per share (EPS) climbed 41.27%. The market reflected GoDaddy’s financial prowess through a significant rise in its stock valuation since November 2023.

Consumer Appeal and Market Position

From a consumer perspective, GoDaddy stands out on two fronts. Firstly, the company offers competitive pricing, especially in a market known for high costs related to custom domains. GoDaddy’s commitment to providing more affordable options has enhanced its appeal. Additionally, the company has been lauded for its 24/7 customer support services. This combination of affordability and robust customer support makes GoDaddy an attractive choice for the expanding base of small businesses and individual customers. In the near term, GDDY is positioned as one of the top tech stocks to consider for investment.

Author’s Perspective

On the date of publication, Michael Que had no positions in the securities mentioned in this article, directly or indirectly. The opinions expressed are those of the writer, subject to the InvestorPlace.com Publishing Guidelines. The researchers contributing to this article also did not hold any positions in the mentioned securities.