With the stock markets at the highest levels, it is not easy to find great opportunities. Especially in the tech corner, everything down to the silicon and solder vendors seem to be priced as perfect. However, some stocks are still wavering because of it Motley Fool Confirmed before Zacks.
Digital Ocean
Small and medium-sized businesses also need cloud infrastructure, but they don't always have the expertise or staff needed for this important task. DigitalOcean has a strong support system to make cloud computing simple and affordable.
For most of the time that DigitalOcean has been publicly traded, it has seemed to be in hyper-growth mode, growing its impressive revenues and customer bases while being unprofitable. In 2023, that dynamic changed: Like many other technology companies, DigitalOcean saw revenue growth slow. Unlike other technology companies, DigitalOcean has managed to turn a profit even as revenue growth has slowed.
Customers who spend more than $500 a month account for more than half of the company's monthly revenue. Their numbers increased by 13% year-on-year in the fourth quarter of 2023.
Infrastructure in Brookfield
This global infrastructure operator currently has several projects under development, including a large number of data centers and two chip factories that it is building in cooperation with Intel. Last year, the company acquired several data center platforms, but it also leases sea containers, for example.
Brookfield Infrastructure has generated an average annual total return of 14.8% since its founding in 2008, versus the S&P500's return of 10.6%. There's no reason to change that now. Another advantage is the 5.4% dividend yield.
Microsoft
Microsoft's stock price will likely not rise tenfold in the coming years. The tech giant has already created multiple millionaires on its way to its current market cap of $3 trillion. However, it is still growing strongly: by 16% in the last quarter. The cloud branch is making a lot of profits, and personal computing is growing again. Activision Blizzard's recent acquisition should do the same for gaming.
Operating cash flow over the past six months was $49 billion, compared to $34 billion the previous year. Dividends (0.75%) and stock buybacks will spread wealth among investors.
Read also: 7 technology stocks favored by analysts
“Total coffee specialist. Hardcore reader. Incurable music scholar. Web guru. Freelance troublemaker. Problem solver. Travel trailblazer.”
More Stories
Now beware of these scams: “They also contact you via WhatsApp and Telegram”
Beerlab: The anti-advertisement to our national art of brewing
Broken smartphone, washing machine or other device? As a consumer you are now entitled to this