2 Dominant Tech Stocks for Long-Term Investors
Investors’ affinity with tech stocks often leads to high returns and profits. Fast-growth stocks often see their growth fade over time, but two stocks have positioned themselves perfectly for long-term success.
Expedia is a dominant force in the online travel industry. Considered an online travel agency, the company controls 75% of the US market and 10% of the global market. The company’s large portfolio has allowed it to overpower Priceline (PCLN) in growth.
The company also recently purchased Homeaway, an Airbnb competitor, for $3.9 billion.
Revenue growth for the company grew 38.7% in Q1, and gross bookings rose 32% annually last quarter. The company also recently closed its deal to acquire Orbitz. Analysts forecast the company’s growth to be 26% annually over the next 5 years.
The stock is still a cheap buy in terms of P/E being just 25.
Amazon may be becoming too big, according to several companies. The company posted over $1 billion in business sales, and the value of the enterprise has swelled to $300 billion. A high P/E ratio of 280 is normally outrageous for any investor, but Amazon seems to do everything right as a company.
Social Capitals’s, ChamathPalihapitiya believes that Amazon’s value can reach $3 trillion in the next decade.
The company’s expansion of Amazon Web Services, a cloud platform, allows it to enter into the IT sector. Amazon controls the retail sector, but the company has also forayed into the video streaming and tablets markets. It also owns several big-named stores, including Zappos, Audible, Woot, Diapers.com and numerous other entities.
Revenues of $107 billion in 2015 show the company is continuing to grow rapidly
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