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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 one of the top financial analysts working today. His book "Overdrawn: The Bailout of American Savings" was a prescient look at the anatomy of the nation's S&L crisis, long before the word "bailout" became part of our daily lexicon. He's a Pulitzer Prize-nominated writer and reporter, lauded by the Columbia Journalism Review for his aggressive style. His 30-year track record as a leading tech analyst has garnered him rave reviews, too. Today he is the editor of the monthly tech investing newsletter Nova-X Report as well as Radical Technology Profits, where he covers truly radical technologies – ones that have the power to sweep across the globe and change the very fabric of our lives – and profit opportunities they give rise to. He also explores "what's next" in the tech investing world at Strategic Tech Investor.