Friday, February 17, 2017

Is Investing In Tech Stocks For Losers?

New technology is fun, it's exciting, and it can sometimes lead to plenty of riches. Unless of course it was 1996 as the buyers of these companies eventually found out. Interestingly the article mentions Yahoo(YHOO) which happens to be the sole survivor from that batch of 90's tech stocks.

Yes investing in tech is seen as cool.  It is after all representative of our progressive future.  But take a look at the performance of these "tech" companies since January 2016.  Here we have Square(SQ), Lending Club(LC), Twitter(TWTR), and Fitbit(FIT).  With the exception of Square(SQ) all have been losers for their early investors. Although owning Square hasn't been as pleasant as the gain alludes. Let's look at a chart.


LC: -49.23%
SQ: +9.01%
TWTR: -28.74%
FIT: -79.66%

That doesn't mean they won't ever make money for investors. Just look at the following chart.

Visit StockCharts.com to see more great charts.


Here we have Google, Microsoft, Intel, and IBM from January 2016. At one point in time all of these companies were losers for their early investors. They were considered the "it" stocks for a new age, but now are "old stodgy tech companies". Of course now we all know how their stories have turned out. Each company is one of the largest in the world by market cap.

MSFT: +20.21%
GOOGL: +8.55%
INTC: 9.17%
IBM: +37.51%

Visit StockCharts.com to see more great charts.

No comments:

Post a Comment