Archive for April, 2020
At times like these, I like to remind investors about my friend “Pete.”
I last told you about him and the colossal mistake he made in our Dec. 15 chat.
You may recall that the former Wall Streeter actually passed on Apple Inc. (AAPL) in the summer of 1997 because he felt the storied computing firm had already seen its best days.
Of course, we now know that Apple is one of the great investing success stories of all time.
I’m bringing this up today because I see a similar mindset taking hold among investors. After a rapid selloff in February and March, the market has been rebounding nicely.
And yet, many are afraid to pull the trigger, even on a company as valuable and built for the long haul as Apple.
But at the very least, the Silicon Valley legend should be on your bear market watchlist because the stock is set to double again from here…
When we spoke on April 14, I noted that I still very much believe in Microsoft Corp. (MSFT).
As I said at the time, I think this is one of the better plays on the $160 billion cloud computing sector.
Please don’t worry. I’m not here today to repeat the same recommendation.
But I would be remiss if I didn’t tell you that savvy tech investors need to look at the flip side of the Microsoft coin.
And it has something to do with one of my dad’s old sayings. See, he was frustrated with me because I was a bit of a troublemaker in high school and ran with a rough crowd.
“Michael,” he used to say, “always remember that people judge you by the company you keep.”
That’s why when I scan for market-crushing tech leaders, I always keep an eye out for those that have strong alliances.
Today, I want to show you one of Microsoft’s key allies that’s set to double its earnings in the next three years and should at least be on your watchlist…
A recent advance that largely flew under Wall Street’s radar says a lot about why artificial intelligence (AI) is set to have a $15.7 trillion impact on the global economy.
Known as “neuromorphic computing,” the cutting-edge method gets closer to simulating the way human brains work.
The system could redefine high-performance computing because it operates at lightning speeds and barely sips energy.
Right now, fast and robust graphics processors are the main power behind AI.
That’s set to change because the new chips work especially well for AI-powered neural networks used in speech and pattern recognition, and computer vision.
In fact, Gartner says neuromorphic chips upon which the platform is based, are set to have a huge impact. They could become the predominant computing for AI by 2025.
Today, I’m going to reveal the chipmaker behind this breakthrough and show you why it is well-positioned to handle the coronavirus panic and should at least be on your watchlist…
Not even a brutal market selloff can keep Amazon.com Inc. (AMZN) down.
Here’s the thing. This is no ordinary bear market, one defined as a 20% drop from the previous high.
It’s the coronavirus panic that has most of the economy in a deep freeze.
As a result, physical retail stores are getting hammered. The U.S. Commerce Department says retail sales for March fell a seasonally adjusted 8.7%.
That’s the biggest one-month decline since the agency began keeping records back in 1992.
And while Amazon definitely faced some supply chain issues, the King of E-commerce came through when the nation needed the tech giant’s help the most. It delivered millions of packages to homebound families all across America.
With that performance under its belt, yesterday the firm’s stock hit a record high – a feat that few stocks can match.
With that in mind, today I’m going to show you why my target price of $3,000 a share looks very conservative…
When we spoke on Tuesday, I noted that one of the 10 tools for coping with the new bear market is to put together a watchlist of great tech stocks you’d like to buy.
The idea here is to get set up for when the market turns our way again. At this point, I have no doubt that the market will rebound as it always has in the past.
But by definition, this choppy, news-driven market greatly increases the risk of getting in too early. To avoid doing just that, I recommend looking for tech leaders that you would like to own for the long haul.
That means giving each one a thorough checkup to make sure that prior to the correction, they had a great track record of earnings gains.
With that in mind, today I want to reveal a tech leader that I feel should be on everyone’s watch list…
The looks on my wife’s face said it all. And no, that’s not a typo.
I used the plural form of the word to convey the range of emotions my wife displayed in under a minute.
It went down like this. I had been pestering her for days during the coronavirus panic to let me have a look at her retirement portfolio.
Since she was working from home and had her laptop there, Tracy finally gave in to the pressure.
As her account’s webpage loaded, she first seemed very afraid. Then she looked alarmed.
Tracy then stared me dead in the eyes with an expression that said, “now what?”
Fortunately, she has me to help. Not only am I a seasoned tech analyst but I personally rebuilt her portfolio after the 2008 financial crisis and turned it into a top performer.
Tracy is far from alone. Millions of us are right now either rebuilding our portfolios or putting together investing watchlists.
And I just so happen to have three great tech investments to tell you about today that are great portfolio rebuilders…
The coronavirus crisis is an event like nothing we’ve seen before in our lifetimes. It’s put an unprecedented strain on our economy by forcing people to stay in their homes. The markets may be down, but many of the same high-tech innovations that drove the pre-virus economy to new heights are helping society stay connected now. That means working from home, shopping for necessities online, and keeping in touch with friends and family. In short, online infrastructure has gone from convenient to totally indispensable. This is a prime opportunity for any online innovator to rise to the occasion, and rise in value. And when this crisis passes, tech will be poised to lead the market again. Click here to watch.
If you’ve followed along with me for any length of time at all then you know I’m a big believer in cloud computing.
And it’s not just because the global market is growing at 21.4% a year and will be worth $185.8 billion by 2024, according to KBV Research.
It’s something far more fundamental. A well run firm that uses the cloud to deliver software as a service (SaaS) have two things that hardware companies can only dream about.
The first is high profit margins. The second is even better – recurring revenue. Literally the money just rolls in month after month after month.
Here’s the thing; companies that have made the move from software publishing to the cloud can really clean up.
That’s really important now because after the bear-market rout, companies and investors alike are taking a shine to liquidity.
Today, I’m going to reveal five reasons why a beaten-down tech leader should be on your watchlist right now…
We’ve talked a couple of times in recent days about the search for a coronavirus vaccine.
And I have also given you plenty of details about promising new treatments at the cutting edge of science that could help keep the spread at bay.
In other words, biotech and pharmaceutical firms can play a big role in either stopping the disease with vaccines or treating seriously ill patients with effective new drugs.
But those are hardly the only ways in which high tech is helping to check the spread of this novel new pandemic.
Fact is, there are a wide range of high-tech solutions and platforms that are proving invaluable. They cover everything from robotics to video conferencing to robust medical AI.
As you might imagine, this is a pretty far flung area. So, today, I’m going to boil it all down for you and reveal what I believe are the three most effective coronavirus tech tools…