Tech stocks: the magnificent others
If you thought tech investing should be limited to shares in the Magnificent 7, think again. From Netflix and Palantir to Intuit, there are plenty of opportunities in tier two tech companies
Big tech has made investors impressive fortunes over the past decade. Valuations remain rich, so punters might inevitably ponder whether there are emerging technology strands to latch onto which might deliver as impressive growth over the next 10 years as some of the redoubtable heavyweights. The answer is yes ... and there are, surprisingly, more than a handful of highly promising contenders to scan.
But first, some context. Back in 2013, excitable US market commentator Jim Cramer came up with the acronym FANG to describe the grouping of Facebook, Amazon, Netflix and Google. Facebook’s IPO had happened only in 2012 (even though it feels as if this technology sector has been around forever). Most people couldn’t understand how a free service would ever make money, with the IPO price of $38 collapsing below $19 in a matter of months. In those days, it was hard to find anyone who felt bullish about the stock, let alone someone who could’ve foreseen the next decade...
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