Tech stocks have always seen increasing interest from investors across the globe. Even though these stocks had volatile trading across the first half of 2021, some of the shares still have the potential to double your investment over the long run.
However, no matter what happens, the tech sector, with its constant advancements, will continue to play an outsized role in powering the whole market gains. Therefore, with due research, we have found that $5000 invested in these 3 tech stocks could make you rich over the next 10 years.
With that in mind, let us see why Apple, Sonos, and Alibaba stocks are poised for future growth even amidst the market fluctuations.
3 Tech Stocks Could Make You Rich Over The Next 10 Years
Apple, the multinational technology company, has seen tremendous growth and popularity since its inception.
The stock price of tech giant Apple has risen quite sharply in recent weeks, and experts say that a $5000 invested in this tech stock could make you rich over the next 10 years. Apple is one of the most valuable and established companies in the world. But apart from this, there are still plenty of other reasons to buy Apple stock now for future returns.
The company saw a significant rise in its stock price to record highs ahead of its June-quarter earnings report. Even though there has been a slight pullback, Apple stock still could be a good buy now. One of the biggest drivers of its growth and success is the iPhone. The game-changing, popular smartphone which launched in 2007 has sparked years of massive growth consistently. This single product has helped the company in building a loyal customer base over the years and positioned AAPL as one of the top tech stocks to invest in.
Yet another significant launch that boosted the growth of Apple stock in 2021 is its first Silicon-powered iMac desktop computers and new iPad Pro tablets. However, two significant segments have given Apple’s sales and profits a considerable rise recently. They are services and wearables. The service segment hit a record revenue of $16.9 billion in its fiscal 2021 second quarter. Apple was thus marking the fastest rate of growth in more than two years.
Moreover, the gains were majorly driven by all the 660 million paid subscribers across Apple’s services segment. It included Apple TV, Apple Music, the App Store, and iCloud, among many others. Luca Maestri, the CFO of Apple, said that the company’s video, music, games, and advertising businesses have also shown a record rise in the quarter. With new launches and developments, even the upcoming quarter looks promising for the tech giant, making Apple one of the top tech stocks to buy right now.
On the other hand, the company also has gained a massive base of active users across its devices. The management claimed, “We hit a new high watermark for our installed base of active devices, with growth accelerating.”
However, Apple has a solid competitive advantage compared to all other tech stocks in the market. This has placed AAPL stock in a position of consistent growth for the coming decades. Also, the company has earned incomparable brand power and a loyal customer base after years of delivering quality hardware, software, and services. This is one significant reason to buy Apple stock now to make a fortune over the next 10 years.
Therefore, considering the company's steady growth and fundamentals, Apple stock could significantly rise in the coming decades opening up profitable opportunities for long-term investors.
With new products and developments in place, Sonos stock could be a good buy right now for future returns.
Sonos, the popular multi-room home speaker company, has seen notable growth since the beginning of this year. The firm has partnered with over 100 companies that offer music services, including Google parent Alphabet (GOOGL), Spotify Technology (SPOT), and Amazon.com (AMZN) Music.
The audio company has a wide range of products, like wireless speakers, home theatre speakers, and several other audio components. SONO stock has gained almost 80.6% over the past few months, thanks to its product innovations designed to meet the changing demands of customers.
The company’s supply-chain efficiencies that drove its impressive sales earlier would probably continue to be a driving force behind Sonos stock in the future too. Since people are still spending most of their time at home and upgrading new entertainment gadgets, a $5000 invested in this tech stock could make you rich over the next 10 years.
Also, the firm has announced a new line-up of exclusive artist stations and original programming arriving at Sonos Radio and Sonos Radio HD earlier this year. This is also one significant reason to buy SONO stock now as it will significantly rise in price in the coming months. Moreover, its fiscal 2021 first quarter was marked as the best in its 18- year history.
The company has reported total revenue of $645.58 million, up almost 15% year-over-year. Its revenue from Sonos speakers solely increased over 13% year-over-year, to nearly $527.52 million, while revenue from Sonos system products surged over 58.9% year-over-year to $97.76 million. The company seems to have a strong growth trajectory for the coming years too, and that is why it is best to buy SONO stock right now for good returns over the long run.
Additionally, Sonos has also launched a new and more affordable portable speaker known as the Roam earlier this year. The company said that it was working with Audi to offer Sonos-tuned audio for a new electric vehicle, eventually increasing the price of SONO stock to new highs.
However, the company’s earnings for the next few years are expected to double with all its development in place. Therefore, SONO stock seems to have significant potential as a long-term investment to double your money in the future.
Thanks to its widespread e-commerce customer base, BABA stock has the potential for significant growth in the future.
Since its inception in 1999, Alibaba has seen tremendous growth and popularity. It first started in China to allow small businesses to connect with manufacturers who could provide competitive pricing for multiple products. But today, the e-commerce company has grown exponentially and has an expansive network of digital products and services.
Alibaba is a Chinese company that is focused on e-commerce, retail, and technology. Alibaba.com was its initial product, and it allowed Chinese manufacturers to export their goods to businesses in bulk at a highly discounted rate across the globe. Because of its impressive track record of growth, the BABA stock is positioned as one of the top tech stocks to buy right now.
As per records, the firm has a five-year annualized earnings growth rate of almost 29% and an impressive sales growth rate of over 46%. Moreover, the stock generated nearly 87% of its revenue and a significant portion of its profit from its core commerce unit. This included Taobao and Tmall marketplaces, brick-and-mortar stores, cross-border and international marketplaces.
Experts suggest that a $5000 invested in this tech stock could make you rich over the next 10 years because e-commerce is a fast-evolving sector. Alibaba is one of the flourishing online companies that is poised for future growth. This Chinese mega-cap player could even be considered as the Amazon, PayPal, and eBay of China, which is why it is best to buy BABA stock now for future returns.
Moreover, Daniel Zhang, CEO of Alibaba, claimed in a news release, "Our cloud computing business continues to expand market leadership and show strong growth, reflecting the massive potential of China's nascent cloud computing market as well as our years of investment in technology.”
The company has a wide e-commerce presence across the globe, and if you are looking for profitable returns over the long run, then BABA stock could be a good buy now.
Tech is an advanced sector that grows at a rapid pace. If you have an excellent strategic investment plan, then $5000 invested in these 3 tech stocks could make you rich over the long run. The focus should always be on stocks with efficient leverage, higher operating, free cash flows, and a strong track record of growth.
These 3 tech stocks have a strong history of consistent growth and have several developments in the pipeline, making them a good buy right now.