An interesting thing has happened, something that sort of snuck up on many investors while technology as a sector has suffered somewhat this year. The big have gotten bigger, and continue to do so, and the reason is fairly simple to understand. They all tend to dominate the subsectors of technology they are in, and they all have grown so big and powerful that it may be almost impossible to surpass them.
Despite the technology sector troubles this year, it is intriguing to note that five of the most valuable companies in the world are U.S. tech companies. In fact, at the end of July, these top companies were the five most valuable in the world, though one recently has been barely surpassed by Exxon Mobil and Berkshire Hathaway. Investors looking to add quality tech stocks to a portfolio should consider these behemoths.
This technology giant has had a rough year and is still down over 10% in a market making new highs. Apple Inc. (NASDAQ: AAPL) evolutionized personal technology with the introduction of the Macintosh in 1984, and it is among the leaders in the world in innovation with the iPhone, iPad, Mac, Apple Watch and Apple TV. Apple’s four software platforms — iOS, OS X, watchOS and tvOS — provide seamless experiences across all Apple devices and empower people with breakthrough services including the App Store, Apple Music, Apple Pay and iCloud.
The tech giant boasts a market capitalization of a stunning $576.24 billion. Apple investors receive a 2.13% dividend. The Wall Street consensus price target for the stock is $124.11. The shares closed Friday at $106.94.
The search giant continues to expand and is even working on a driverless car now. Alphabet Inc. (NASDAQ: GOOGL) provides online advertising services in the United States, the United Kingdom and rest of the world. It offers performance and brand advertising services, and it operates through Google and Other Bets segments. The Google segment includes principal internet products, such as Search, Ads, Commerce, Maps, YouTube, Apps, Cloud, Android, Chrome and Google Play, as well as technical infrastructure and newer efforts, such as virtual reality.
The Google segment also sells hardware products, comprising Chromecast, Chromebooks and Nexus. The Other Bets segment includes businesses such as Access/Google Fiber, Calico, Nest, Verily, GV, Google Capital, X and other initiatives.
The company has an impressive market cap of $545.16 billion. Its consensus price target is $939.74. The shares closed last Friday at $793.22.