Technology stocks as an investment opportunity

Today’s tech economy is run by business giants like Apple, Roku, Samsung, and Amazon. As
consumers and technology users stay updated about the release of the new iPhone, tech investors
always pay attention to the cash flow in the specific gadget market. A recent hike in the prices of
the iPhone 12 or the downfall of any other gadget is influenced by many different factors, and
the share pricing of the company in the market is one of those factors.
Technology stocks have always been an investment opportunity with a higher ROI. The
changing environment of technology and the gadget market keeps motivating new buyers to
make more purchases, and that causes the gadget stock prices to go higher. For the last few
years, with every manufacturer releasing new gadgets, the technology sector offered an
investment return of up to 34.28%.

Flop Gadget is the Downfall for Stock Market
Higher investment returns don’t make the gadget market risk-free. The abrupt change in
technology can lead the gadget to a total failure and stock prices downfall. Many businesses
failed to meet the gadget market needs, and these companies were put out of business. Some
emerging technologies enter the market with a splash, hike the stock prices, fail to stay in the
market, and then end up with stock prices downfall.
Ongoing trends and gadgets may not offer instant returns, but these are long-term investments as
compared to short-term trends. The insights on the returns from the gadget stock market show
that ROI has been varying from years to year depending upon the release or discontinuation of
gadgets.
Technology stocks can bust or boom at any time, and if you are experiencing an increase in the
prices of the gadgets, the scenario is closely related to the stock market performance of that
company. Investors made big investments in 3D television, thinking that this tech is the future,
but the tech failed to perform well in the market, and the stock prices fell to almost nothing.

New 5G iPhones are Promising for Stocks
The launch of the newest iPhone 12 with 5G support is going to boost the AAPL performance in
the market as more buyers are interested in equipping the newest phones with 5G technology.
The performance of the iPhone 12 in the market is directly related to the market performance of
Apple stocks. If this newly launched phone is successful in achieving record sales, the price of
AAPL will go from $110 to $120. This leap of AAPL stock is predicted on the basis of the
average selling price of the new phones.

These estimations for the Apple stock prices are made on the build plans for the iPhone, but the
actual results will be affected by the public response. If the market shows interest as per the build
plans, the stock prices of Apple are definitely going to surge in 2021.

What moves Gadget Stock Prices?
Investors are expecting handsome returns with the launch of 5G smartphones, but gadget
technology is not the only factor involved in the stock performance. If the new gadget is
equipped with some innovative tech and is supposed to perform well in the consumer market,
more investors start investing in the stock of that gadget and influence the pricing for the end-
user of the gadget.
In the last three years, the market cap of Apple has almost doubled due to successful product
releases. Here are some important factors that drive the market stock of any stock market:
Gadget Sales
Direct sale of the gadget is the biggest revenue generation stream for any company. Any famous
gadget sales generally generate more than half of the revenue for the company. More sales will
move the stock prices up for the gadget companies.
Services
Services offered by the gadget manufacturer also help stocks to move in the right direction. For
Apple, after-sale services have contributed 18% to the overall revenue generated throughout the
financial year, and the percentage may vary for different gadget companies; still, services are
important to stock price drivers.
New Product Launches
If the newly launched device is expected to perform well in the consumer market or the high-
priced new gadget is equipped with new tech, it will cause the prices for company stock to go
higher.
Market Sentiments
Intangible factors also influence the stock performance of any company. Most of the gadget
companies are focused on Green-Tech to promote sustainable development, and that is creating a
soft image of the company for the audience.
Investors and end-users are always ready to pay a reasonable premium if a gadget offers real-
time value. If the company fails to keep the sales pipeline keep flowing smoothly, the company
may fail to survive or thrive in the stock market.

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