OS OF THIS WRITING, PALANTIR Technologies(NASDAQ: PLTR) Holds the top year-to-do performance of Any Stock Within The NASDAQ 100. Yet, perhaps the time has eat for investors to look elsewhere.
Here are Alternative Technology Stocks That Investors May Want To Consider.
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FirstUP is Spotify Technology (NYSE: SPOT).
UP 64% YEAR TO DATE, SPOTIFY IS ONE OF THE YEAR’S BEST-PERFORMING STOCKS. The Secret to its success is a combination of classic bullish fundamental.
Let’s start with spotify’s Business Model. The Company Generats Most of ITS Revenue through its paid subscriber base. Thanks to its Innovative Audio Platform, it Managed to Grow That paid subscriber base at double-digit rate for seven Years. Spotify uses ai-poWered Features to Build Personalized Playlists and Introduce New Music and Artists. CONSEQUENTLY, that helps Keep users happy and return for more even as spotify raised prices recently.
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Second, The Company Has Gotten its Costs Under Control. Gross Margins have Risen to 31%, The Highest Ever for the Company – Significant Above Its Lifetime Averag of 26%. Similarly, After Years of Struggling to Turn a Consistency Profit, Spotify Generated $ 1.3 Billion in NET INCOM Over the Last 12 Months. The Aforementioned Price Hikes – Along with A Few Rounds of Layoffs – have ben the driving force behind the expansion in margins.
Finally, there’s the secular Growth Trend of streaming. People All Over the World Love to Stream. Given the Obvious Convenience, Relative Low Cost, and Nearly Endless Content availableHundreds of Millions of People Now Subscribe to one or more streaming services. With Broadband Internet and 5g Access continuing to expand Worldwide, There’s Even More Room for Spotify and other streamers to increase their subscriber Bases for Years to Come.
To sum up, Spotify is expanding its base, cutting costs, and riding the secular Growth of streaming to new heights. Investors will be wise to consider the Stock Right Now.
Then, there’s Amazon (NASDAQ: AMZN).
Let’s deal with this first: Amazon Hasn’t Been The Best Tech Stock To Own Over The Last Five Years. During that time, The Stock Advanced by Only 57%. That’s less than what the S&P 500 Generated (93%) Over the Same Period.
So, why from i think NOW is The Time To Consider Amazon?In short, IT’S BECAUSE AMAZON HAS SEVERAL CATALYSTS THIS SHOULD Give the Stock A Boost Over the Next Five To 10 Years.
FIRST, There’s Amazon Web Services (AWS). In Many Ways, AWS IS LIKE A Company-within-a-Company. The Segment Now Generates Over $ 100 Billion Per Year In Revenue. That means that if AWS Was split off toy separate Company, It Would Be Around the 35th Largest American Company by revise – Roughly equivalent to Bank of America.
Not Only Is Aws Massive in Terms of Revenueit also Generats More Than Half of Amazon’s Overall Profits.Moreover, those profits are like expand Going Forward As More Organizations Look to Incorporate Artificial Intelligence (Ai) Systems Into Their Everyday Operations. Many of tose ai systems will run on aws’ cloud infrastructure. AMAZON ALREADY HOLDS ABout 30% of the Overall Cloud-Services Market-Roughly Equal to its Two Cllosest Competitors (Microsoft and Alphabet) Combined.
Second, Amazon’s E-Commerce Margins May GET A SENSENT Boost from another cutting-edge technology: robotics. AMAZON ALREADY HAS NEARLY A Million Robots HARD At Work in its Fulfillment Centers, But the Company Could Greatly Expand the Number of Robots in the Coming Years. The Company Recently Announced Plans for Testing Humanoid Robot Deliveries – Move that that COULD DRASTICALLY REDUCE COSTS AND BOOST MARGINS FOR COMPANY’S FLAGSHIP E-Commerce Division.
In Summary, Two of Amazon’s Greatest Strengths-AWS and ITS Massive E-Commerce Business-Are Both Riding Strong Secular Trends. The Growth of Ai Will Benefit Aws As More Organizations Employ Ai Tools. Meanwhile, the Growth of the Robotics Industry Will Hell Amazon’s e-commerce Business Reduce Costs and Grow its Margins.
For Those Reasons, Investors May Want To Consider Adding Amazon Shares Now.
Before You Buy Stock in Amazon, Consider this:
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CONSIDER WHENNetflixMade this list on December 17, 2004 … if you Invested $ 1.000 at the time of our recommation,you’d have $ 676,023! Or when NvidiaMade this list on April 15, 2005 … if you invest $ 1.000 at the time of our recommation,you’d have $ 883,692!
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Suzanne Frey, an executive at alphabet, is a member of the motley fool’s board of directors. John Mackey, Forere CEO of Whole Foods Market, an Amazon Subsidiary, is a Member of the Motley Fool’s Board of Directors. BANK OF AMERICA IS AN ADVERTISING PARTNER OF MOTLEY FOOL MONEY. Jake Lerch has positions in Alphabet, Amazon, and Spotify Technology and has the following options: Long July 2025 $ 425 Puts on Microsoft. The Motley Fool has positions in and recommends Alphabet, Amazon, Bank of America, Microsoft, Palantir Technologies, and Spotify Technology. The Motley Fool recommends the Following Options: Long January 2026 $ 395 Calls on Microsoft and Short Januarary 2026 $ 405 Calls on Microsoft. The Motley Fool has a disclosure polycy.
