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Over the last couple of weeks, I've heard some pundits on TV refer to the current tech market as a "crash" in the making.
Don't believe them.
Seems like whenever some big tech leaders get clipped, the pundits come out of the woodwork with all sorts of dire predictions.
To be sure, the Nasdaq is down about 5% over the last month. However, during the five-year bull market, we've seen short-term drops of about 10% at least four times.
And yet, in each of those cases, the losses evaporated in just a few weeks as tech inevitably led the market higher once again.
Here at Strategic Tech Investor we look at declines as great buying opportunities that, if handled correctly, can help you build your net worth.
So today I want to show you four of the best investments that you can make right now to turn the market's recent turmoil to your financial advantage.
Take a look.
Best Investments in Tech No. 1: Facebook Inc. (Nasdaq: FB)
Chief Executive Officer (CEO) Mark Zuckerberg recently proved why Facebook (Nasdaq: FB) is the one social networking stock everyone needs to own.
He turned the industry on its ears by spending $19 billion to acquire WhatsApp, a five-year-old mobile messaging service startup with just 55 employees but 450 million dedicated users scattered over several continents.
Facebook already derives something like 53% of its revenue from mobile ad sales. The potential synergies of this linkup are amazing.
At the end of last year's fourth quarter, Facebook had 1.2 billion monthly active users, up 16% from 2012. But active mobile users climbed 39% to 945 million, or 77% of its user base.
This acquisition could bring billions in new sales to Facebook in a short amount of time. If it just captured $1 a month per user, Facebook would post around $5.4 billion in new sales on top of 2013 revenue of $7.8 billion, itself a 55% yearly increase.
Zuckerberg has shown he's a strong leader with a clear vision of how to continue building Facebook's franchise.
Three weeks ago, he followed the WhatsApp deal with a decision to pay $2 billion in stock and cash for virtual reality firm Oculus Rift. At first, Oculus will continue to focus on immersive gaming.
In the long run, however, Zuckerberg sees this as a key piece of wearable tech that will combine virtual reality with WhatsApp and Facebook for a seamless user experience.
Trading at roughly $62.50 a share, Facebook has a market cap of $159 billion. It has operating margins of 37%, an 11% return on equity, and nearly $11 billion in cash on hand.
This next tech stock will surge on three major catalysts – and it's raised its dividend payout 10 times over the past eight years…
About the Author
Michael A. Robinson is a 36-year Silicon Valley veteran and one of the top technology financial analysts working today. That's because, as a consultant, senior adviser, and board member for Silicon Valley venture capital firms, Michael enjoys privileged access to pioneering CEOs, scientists, and high-profile players. And he brings this entire world of Silicon Valley "insiders" right to you...
- He was one of five people involved in early meetings for the $160 billion "cloud" computing phenomenon.
- He was there as Lee Iacocca and Roger Smith, the CEOs of Chrysler and GM, led the robotics revolution that saved the U.S. automotive industry.
- As cyber-security was becoming a focus of national security, Michael was with Dave DeWalt, the CEO of McAfee, right before Intel acquired his company for $7.8 billion.
This all means the entire world is constantly seeking Michael's insight.
In addition to being a regular guest and panelist on CNBC and Fox Business, he is also a Pulitzer Prize-nominated writer and reporter. His first book Overdrawn: The Bailout of American Savings warned people about the coming financial collapse - years before the word "bailout" became a household word.
Silicon Valley defense publications vie for his analysis. He's worked for Defense Media Network and Signal Magazine, as well as The New York Times, American Enterprise, and The Wall Street Journal.
Michael is 100% independent and receives absolutely no compensation from companies he writes about. His ideas are completely his own.
So, it probably goes without saying that you won't ever be left in the dark about breaking innovations, ahead-of-their-time technologies, and breakout companies on the cusp of changing the world once you join this world.
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