Amazon.com Inc. (Nasdaq: AMZN) made headlines a few days back when it revealed first-quarter cloud sales of $1.56 billion.
That's a stunning year-over-year gain of 49%. And AMZN stock has seen a 71% surge since Jan. 2, 2015. CEO Jeff Bezos says his company's cloud-based Amazon Web Services will likely be a $5 billion business this year.
I always recommend that you focus on growth, but in this case, I believe there is more stable and affordable way to play the cloud. After all, Amazon's profits dipped in the first quarter – and the e-commerce site's stock remains a tad volatile.
No doubt, Amazon's and the overall market's swings can be unnerving and lead some investors to want to throw in the towel.
However, you won't be doing that after you learn more about the upside I see in three of tech's hottest sectors, including cloud computing, for the rest of the year.
Today I want to show you how to play them in ways that will beat the market – and help you sleep at night…
Beating the Odds
At the end of last year, I forecasted a strong year for tech stocks.
And that's exactly how events have played out. Since Jan. 1, the Nasdaq Composite Index is up 7.1%, more than doubling the return of the Standard & Poor's 500 Index.
At the time, I also said to make market-trouncing gains, you have to "be a 'stock-picker' winner."
However, as much as I love growth stocks like Amazon, I very much believe in taking a balanced approach to creating tech wealth.
That means besides picking market-beating stocks, we also need to find great exchange-traded funds (ETFs) that we can count on for years to come.
In fact, ETFs are a great way to play the choppy markets we've been seeing all year. They allow you to focus on rapidly growing tech sectors and give you diversification – meaning your risk is spread out among dozens of companies.
In other words, through ETFs we can put entire tech sectors and dozens of companies to work for us. That way, if a few companies in a hot sector falter, the rest will carry the day.
About the Author
Michael A. Robinson is a 36-year Silicon Valley veteran and one of the top tech and biotech 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.
And even with decades of experience, Michael believes there has never been a moment in time quite like this.
Right now, medical breakthroughs that once took years to develop are moving at a record speed. And that means we are going to see highly lucrative biotech investment opportunities come in fast and furious.
To help you navigate the historic opportunity in biotech, Michael launched the Bio-Tech Profit Alliance.
His other publications include: Strategic Tech Investor, The Nova-X Report, Bio-Technology Profit Alliance and Nexus-9 Network.