The Top 5 Tech Stocks for Millennials
Millennial investors out there, those aged somewhere between 27 and 42 — listen up! Now that you’re likely in the prime earning years of your career, investing for your future and eventual retirement should be a top priority.
According to research by The Motley Fool, technology is one of the hottest industries among Millennials — which sounds about right, spoken as a Millennial myself.
Here are five awesome tech stocks with innovative businesses and enough growth to suit your long-term portfolio.
1. Microsoft
Tech conglomerate Microsoft (NASDAQ: MSFT) has been part of the computing revolution for decades and remains a powerhouse today. Its Windows software business is still a big piece of the company, and Microsoft has pivoted to new technologies like the cloud and artificial intelligence (AI).
MSFT Revenue (TTM) data by YCharts
Despite its massive $2.7 trillion market cap, Microsoft’s broad exposure throughout the technology industry gives it multiple avenues to grow. It’s also one of the world’s most deep-pocketed companies, with over $60 billion in annual cash flow flooding a balance sheet with $144 billion in cash and short-term investments.
2. Netflix
Millennials are the first generation to cut cable and lean on streaming for their entertainment. There are various services today, but Netflix (NASDAQ: NFLX) pioneered the industry after switching from DVD rentals to digital content. Netflix is the world’s largest streaming service, with over 247 million paid memberships. The company adds between 2 million and 8 million new subscriptions every quarter.
NFLX Revenue (TTM) data by YCharts
Forging a path to long-term growth shouldn’t be hard. Netflix is a global company, and streaming is still new for most markets worldwide. Why can’t Netflix eventually have 300 million, 500 million, or even a billion paying customers? Netflix is also testing the waters of new content forms like mobile games. Netflix is a fixture in digital entertainment, so buy and hold the stock for the long run.
3. CrowdStrike
Cybersecurity has come front and center in the corporate world in recent years. Hackers today are more sophisticated, and a breach can cost a company millions of dollars in damages. CrowdStrike (NASDAQ: CRWD) is among the next-generation security companies using the latest and greatest in cloud and AI technology to find and destroy computer threats.
CRWD Revenue (TTM) data by YCharts
CrowdStrike is by far the youngest company on this list, but its combination of growth and stellar financials bodes well for long-term investors. The business has grown revenue from $400 million to nearly $3 billion in just a few years, and is cash-flow positive, with GAAP profits imminent. Management estimates its addressable market will grow to $225 billion by 2028, so there are potentially many years of growth ahead.
4. Meta Platforms
Millennials grew up during the dawn of social media and saw firsthand how Meta Platforms (NASDAQ: META) came to power. It started with Facebook, but today Meta’s apps include Instagram and WhatsApp. Collectively, these apps attract roughly 4 billion users each month. The company makes billions in revenue and profits by selling ads to its mind-bogglingly large audience.
META Revenue (TTM) data by YCharts
Founder and CEO Mark Zuckerberg is still just 39 years old, which is hard to believe given how long he’s been a well-known figure. Nonetheless, Meta’s young but seasoned leadership has proven it can create value for investors. Despite its apps’ success, Meta is also planting seeds for the future, investing in AI and metaverse technologies. There are worse places to put your money than with a proven wiz like Mark Zuckerberg.
5. Amazon
E-commerce is a staple of life in America, so it’s hard to find people unfamiliar with Amazon (NASDAQ: AMZN). The company is the runaway e-commerce leader in the U.S., with a 37% market share. Its closest competitor, retail giant Walmart, has just 6%. Amazon also owns the world’s leading cloud platform, Amazon Web Services.
AMZN Revenue (TTM) data by YCharts
Amazon has been selling online since the late 1990s and does over $400 billion in annual e-commerce sales. Despite that, just 15% of America’s retail spend is online. That means Amazon could grow for decades. Ditto for cloud computing, which could compound at over 14% through 2030 to $1.5 trillion if estimates from Grand View Research are correct. Amazon’s massive size helps it provide more value for less money, a competitive advantage that could further manifest as the company grows. This is a powerful cycle that should create happy shareholders.
Should you invest $1,000 in Microsoft right now?
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Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Justin Pope has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, CrowdStrike, Meta Platforms, Microsoft, Netflix, and Walmart. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.