In November the prices of stocks of big tech went down along with the general markets and there are a multiple number of reasons for it. In an article by David Streitfeld of the New York Times titled Big Tech bulks up, perhaps that is what you may wish to do with some of your dividends – buy more tech shares or ETFs.
What are the tech companies doing? The first point all of the FAANG stocks have great amounts of cash, Apple has $ 237 billion in the bank.
Big Tech is expanding and needs thousands of new employees to do what the companies are engaged in. Google and Amazon are expanding offices in New York City and the Washington, DC area. In the areas where Amazon has announced satellite offices, the condo prices have increased.
In San Jose, near where the Diridon Station – where the buses, light rail, Caltrain and Amtrak meet, Google is planning to build a new campus of 8 million square feet of office space for 20,000 workers.
Facebook has two primarily locations in the bay area – Sunnyvale and downtown San Francisco. In the downtown area they have leased 750,000 square feet which makes them the third biggest tech tenant in the city. The leaders are Salesforce.com and Uber Technologies Inc.
Amazon now employs more than 500,000 employees plus contractors. Amazon leads the tech group in cloud computing, with Microsoft in second place.
Facebook and Instagram is expected to earn $ 21 billion in digital ads in the US. The next largest company in digital ads is Google with Amazon as third.
In total revenues, Apple, Amazon, Facebook and Alphabet, Google’s parent generated $166.9 billion in revenue in the third quarter of 2018 alone which was up 24% from the previous years.
Linking to dividend paying stocks, clearly the tech stocks are still growing revenues and expansion remains the norm at the companies. The stocks will go up and down, but in some manner whether it be in ETFs or individual ownership tech stocks need to be part of your investment portfolio. Every year there will be new ideas of how tech can make our lives better, some will and the big companies will benefit, you should to.
There are more questions than answers, till the next time – to raising questions.