Dow Futures: The Best Tech Stocks to Buy in 2019!
Investing your money is a clever way to expand your wealth. But the question is, where? While there are lots of options available, you have to be very careful on where you slid your money in. That is why “futures” is used in stock market. Specifically the most used one is Dow Futures. And with the right monitoring of these futures, a good buy can be done. But in the meantime, listed below are the best tech stocks you can buy in 2019.
Before we get on the list: What are Dow Futures? To begin with, according to Dow-Futures.net, the term “futures” means “a standardized contract to buy or sell a specified commodity of a standardized quantity at a certain date in the future at a market determined price”.
And “Dow” came from Dow Jones Industrial Average. Therefore, Dow Futures provide an indication of where the stock market is headed before it opens. Hence, it serves as a guide to many investors on which market to eye that day.
On the other hand, it is true that tech stocks decreased because of the controversies and wars regarding America’s tech giants. Issues like privacy leakage or Google accessing people’s confidential information has caused damage to these giants, but experts say this is a good chance to get in at a lower price. Besides they believe that technology’s power won’t die anytime soon, so consider the issues at a challenge for the meantime.
“Unless someone convinces me that all of us are going to go back to TVs and radios, I still think digital advertising is a place where the growth will continue,” says Melda Mergen, deputy global head of equities for Columbia Threadneedle Investments.
TECH STOCK #1: Alphabet (GOOGL, -0.82%)
Portfolio manager, Chris Lin, explained that the portfolio is powered by artificial intelligence. And so she believes that as artificial intelligence and machine learning continues to be the next trend in computing, Alphabet is at the forefront, especially for tech stocks.
Chris Lin is the portfolio manager of the $19.6 billion Fidelity OTC fund of which Alphabet is among the largest holdings.
Alphabet has run through Google search engine for 20 years now. Started from having eight products the multinational conglomerate holds more than 1 billion users respectively.
TECH STOCK #2: Facebook (FB, -1.16%)
Facebook’s stock experienced being in the bear market last year. Bear market is when the economy is bad and stock prices are falling. And so, the company is trading at its lowest valuation ever at 19 times earnings.
According to Dan Chung, CEO and CIO of Fred Alger Investments, “this may end up being one of the last buying opportunities”.
Nonetheless, Facebook users continue to grow despite the issue. One of the possible reasons these experts think that this tech giant is worth the investment. Besides, never forget that FB still owns two of the largest media assets in the world (Facebook and Instagram) and two largest messaging assets in the world (Messenger and WhatsApp).
TECH STOCK #3: Activision Blizzard (ATVI, -0.94%)
Aside from the search engine and the social media site, another form of media that remains on top is the gaming industry. One of which are video games.
Chris Lin is also one of the owners of Activision Blizzard and he believes that video games still represent a very affordable form of entertainment. He gave Call of Duty as an example which sells at $60, which is equivalent to about 10 cents an hour for a gamer who plays 12 hours a week. Not a bad amount, right?
This technique as Lin explains leave his players the chance to purchase add-ons like weapons, costumes and others. In the latest trading, Activision Blizzard closed at $50.83 marking a +1.72% from the previous day. And for the past month it has gained 3.67%.
TECH STOCK #4: Take-Two Interactive Software (TTWO, -0.83%)
The rising company created a new record with its new game, Red Dead Redemption 2 which grossed $725 million in three days. Take-Two Interactive Software is also home to NBA 2K. Chung also expressed his liking for the company.
This company might be worth the shot. It has shared a 3.36% change during its most recent session, ending the trading pay priced at $107.92 with a 24-hour trading volume that reached 2.39 million. With that, the market capitalization of the company is now at $12.74 billion.
TECH STOCK #5: Texas Instruments (TXN, +1.40%)
But above the four companies mentioned above, this might be the most important. Without the semiconductor company, Texas Instruments, gaming nor A.I. would be possible. Although the company tumbled down with the slowdown of the Chinese demand last year.
According to David Eiswert, portfolio manager of the $1.2 billion T. Rowe Price Global Stock fund, chipmakers is trading 20% below its peak giving it a dividend yield of more than 3.2% which is higher than it has been for years.
As Eiswert also explains that investors are overestimating the trade war risks. Texas Instruments derives 44% of its sales from products shipped to China but many of those goods are exported elsewhere. On the latest note, shares of TXN was closed at $96.24 in the last trading session with a lesser volume on the number of shares but the total market cap for the stock is $93.99 billion.
For investors who have just started in this field, Dow Futures begin trading on the Chicago Board of Trade at 7:20 a.m. Central Time. And since Dow Futures trade a full hour and ten minutes before the stock market opens, the investment community already grasps the sense of the market sentiment.
While Dow Futures may have other counterparts, it serves a great value that’s why it is chosen by many. The value of one Dow Future contract is 10 times the value of the DJIA. But be very careful of Dow Futures because for example, the DJIA fell from 12,000 to 11,984, you as a buyer would have to settle the transaction by paying the futures seller $160.
One rule though is that if Dow Futures are trading lower, chances are stock market will open lower and vice versa.