Tech News 2016
If the company's stock goes up, it doesn’t always continue to go up next year. The case, for instance, is Apple, whose shares have been delivering good returns in the last few years, but barely improved this last year, while the Nasdaq index has gained 6%.
As we head into the new year, it’s time to put the biggest tech stocks in perspective. Let's take a close look at the forecasts for the new year.
Tech News 2016: Forecasts for upcoming year
Netflix is key company for many investors right now, as it outperformed all other big tech stocks companies. And it did so by a large margin. It was up more than 140% in 2015. Investors continue to be bullish on its stocks in the near-term future. The firm's shares have improved by 17%, and that is just in the past few month. But Netflix’s strong performance is called into question by one of the stock’s largest institutional investors. Jennison released a note saying that it is getting rid of bullish positions in Netflix, which stood at 16 million shares. This means they are going to liquidate around 4% of the stocks in open circulation.
But Netflix has more than 70 million users in over 140 countries. It has a goal of reaching every other developed country in 2016. No other tech stocks even come close in ambition and spectacular returns the company delivered for its shareholders in 2015. It recently announced a large expansion of its original content. It was greeted with mixed reaction and some investors made a well-deserved round of profit-taking and closing their positions.
Tech News 2016: Stocks leaders of 2015
Now let's move to the other top big tech stock news of 2015. Google is second only to Apple in market capitalization and it posted steady gains with a chance to overtake Apple as a leader in stock market cap. Google solidified its upper-management. Due to a prolonged period of restructuring, confusion and improper decision-making it finally came out as a winner. Investors are clearly comfortable with the new Alphabet structure of Google. And the company was rewarded with returns of more than 40%. Sanford Bernstein upped the price target for Alphabet to $950 from a current level of $750.
In third place came Facebook. It returned 33% from its losses in 2015. Its successful navigation into mobile area and well-thought-out acquisitions are proving successful and bear significant fruit for the company's investors. Analysts predict the company’s earnings to grow over 20% per share in 2016 and even with the most positive analysts saying that it will accelerate to a 33% boost. Not many other tech stocks, or stocks in general, have a chance at such impressive growth in a year full of uncertainty and political problems. There is no single analyst that expect Facebook not to overachieve in 2016.
Rounding up out top five tech stock news there are two companies that refused to go through recession like the majority. Salesforce and Adobe, both delivered 30% in 2015. Since 2010 Salesforce is up 110% and Adobe has gained a staggering 228%.
Finally, analysts predict that Facebook and Google's Alphabet are among the fastest growing tech stocks this year. And while we may dream that Netflix delivers a 150% return in back-to-back years, the vast majority of investors believe that it can deliver over 10% easily. Salesforce and Adobe had a round of impressive returns over a prolonged period of time, and there is not much to suggest that its going to end soon.