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  • Common Theme Of Analysis Of Big Cap Tech Stocks 0 comments
    Nov 17, 2013 3:58 PM

    I cast aside all aspersions of doubt uttered by the less kenned about big cap tech stocks that these particular stock investments are vulnerable and less secure compared to others. While most investors concentrate on easily observed tech stock like tangible smartphones; iPhone series, Samsung Galaxy, and PCs, there are still a lot of technology stocks operating behind the scenes with attractive and growing earnings.

    Due to this many investors get enticed into risking the big cap tech stocks over the penny tech stocks since most tech companies concentrate on development and improvement of their technology. In this manner, they realize their full potential of patents and growing into leading big cap tech stocks such as Apple and Google.

    Today, many sectors of the economy are increasingly adapting to technological advancement giving more opportunities for growth of the technology industry. This greatly helps in shaping our society; providing greater flexibility.

    In spite of the differences posted by excellent performance of big cap technology stocks, the gripping bit is the similarities and odds that these tech stock companies experience before turning into the market's moving waves.

    Some of the vanguards are Apple (NASDAQ:AAPL), Nokia (NYSE: NOK), Microsoft Corp. (NASDAQ: MSFT), Google Inc. (NASDAQ: GOOG), Samsung (OTC: SSNLF) etc.

    Undoubtedly, many pundits and financial analysts will always apply these themes to advice stock investors on whether to buy or sell particular stocks. The following are the comparisons that any avid investor can draw and use to figure or anticipate blossoming periods ahead with these stocks despite the market uncertainties:

    Market Leadership

    Clearly, most the exquisite technology stocks are in fact the market holders in their specific market niche. For instance, Amazon (NASDAQ: AMZN) amicably won the market title in online bookstores after persevering the destruction brought about by bursting of the dot-com bubble. In addition, diversifying its service earned the leading online retailer globally with a number of retail websites across all continents.

    On the other hand, both Apple and Samsung have proved to be the best in providing exclusively outstanding smartphones. The market dominance over smartphones market has fueled into a cutthroat competition between the two high riding technology companies taking a new bearing into court premises. The jury verdict's was overwhelmingly against the Samsung Android smartphones as it directed a $1.05B damage settlements to Apple that claimed to have been fouled in its patent rights.

    The ongoing court pugnacity which is likely to favor Apple will give the Mac maker more control over market share for its products thereby bound to increase its sales from smartphones and in turn generate strong corporate income.

    Though the court's lopsided decision will leave most vendors and consumers on the receiving end, the investors will be the biggest beneficiaries in the long run if the court upholds its ruling.

    Innovation

    The main reason why these illustrious technology stocks dominate the competitive industry is due to the excellent innovative methods employed to make sure the products and services offered to the market meet the consumer expectations as well as compete with the other existing products and services.

    Most companies budget and channel colossal amount of funds into product research to improve and change the existing technology for better product and services delivery. This has allowed Apple to get over the previous impasse in executive management and became the first company to redefine basic mobile phone functions and pioneered smartphones market.

    Similarly, Microsoft is continually improving on its Windows operating systems to adapt with the constant dynamism of consumer preference, while Google, the leading Android mobile phone manufacturer introduced a sweeping tide that stimulated competition with other leading smartphone makers even though it is bound to lose big considering the Apple's gambit in the ongoing patent scam.

    Inherent Value

    Diminution in value of these technology stocks is a process that may take a quite a long time. Despite of the unpredictable market endemics, the stocks have proofed taxing to reduce gradually within a short period. This is because of the focus on delivering outstanding commodities and in turn keeps afloat the share values within certain ranges.

    Indeed, fluctuations are bound to take place for instance, Apple shares plunged from $750 to $450 when it first went trading in public, but later the share gained and stabilized.

    Brand

    Since these stocks top the market, it implies that they have undoubted recognition and hence difficult to dispute. This is clearly evident in Microsoft; the provider of the widely used computer and mobile operating systems that has dominated the market since 1990s. In fact, its market monopoly has played a major role in the growth of its share value and eliminating rivals.

    Subsequently, the introduction of smartphones and innovation in portable music players and personal computers by the Apple Inc. made it stand out as a technological giant in terms of brand, uplifting its stock price and emerging as one of the most value consumer brand globally.

    This dimension of product differentiation uplifted Apple stock's surpassing the first world record set by Microsoft in 1999 and was valued at $624B on August 20th, 2012.

    Amazon has also established a chain of trusted retailers making it a reliable platform for online retail transactions.

    Global Existence

    The technology stocks enjoy worldwide existence. It is definite that the sale of products or services to the global market has enabled these online based-companies to have a variety of consumers with different tastes and preference making their diverse commodities successful across different markets.

    The global market presence makes the big cap stocks have an edge over other micro technology stock companies. Its stock-bearers can access funds from financial institutions in varied and broadened choices.

    In addition, the global recognition has enabled these technology stocks to spread out their financial risks and contributed to the development of this industry.

    In Summary

    The innovation spearheaded by these high ranked technology stocks has largely contributed to evolution of the information and technology industry not only in the US but also to the rest of the world. The process of attaining all these features at present economies of scale in the tech industry and in a natural manner explains the advantages accrued by Microsoft (monopoly). Economies of scale have been the major drivers in these tech corporates since the 20th Century.

    This therefore gives motivation to investors from all corners of the globe to invest in its stocks.

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