Technology Stocks To Watch For 2013

Technology is one of the most exciting industries in terms of start-ups and new innovations; however, this fast-paced nature means that it can be very tumultuous on the stock market. The S&P 500 Information Technology is the index dedicated to the top 500 technology companies. Overall, in 2012 the index grew by 13.15%. Although this is slightly lower than the average of 13.41% which the market as a whole experienced, it still marks a successful financial year for the tech sector and places it in fourth place of the ten S&P industries. As we move quickly into 2013, analysts have begun making predictions on which companies in particular are going to be big winners throughout this year.

Firstly, domain company VeriSign is expected to have a profitable year in 2013. The company makes money each time an internet user registers a domain on the ‘.com’ extension – which, considering this is the most popular extension on the internet, means that VeriSign have raked in millions of dollars over the years. With a number of new domain extensions being released this year, some people questioned how the company would fare. However, after announcing both the extensions of its ‘.com’ contract and the news that it would now start to make profits from any ‘.net’ registrations, shares in the company rose by over 13% during December.

Another company which experts are expecting success from is Netflix. The online film and television streaming service has gone from strength to strength over the past year, as customer demand for choice and instant access to entertainment has grown. The demise of rental store Blockbuster has revealed the extent to which people are now turning online for these services, leading the share prices of companies such as Netflix to rise. The company’s announcement of a partnership with Disney, as well as the involvement of investor Carl Icahn, also caused an overall increase of 70% in the fourth quarter.

Investors and those interested in spread betting will also be interested in the fortunes of Akamai Technologies, a company which specialises in helping businesses online. In December, it announced returns of 11.7%, causing the stocks to hit the highest point that they had in twelve months. Buying shares in companies such as these is very tempting when they are experiencing this sort of growth. However, it is important to remember the volatility of the stock market, particularly in sectors such as technology.

Adam has been writing articles for numerous sources for a number of yeats now with great success.

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