There are a number of promising future technologies likely to play out over the next decade. While investor interest in those ideas will ebb and flow, companies that can deliver the tech trends of today and the future are likely to benefit.
The long-term winners in tech are often hardware and software infrastructure plays that help develop any number of new technologies, whether or not those technologies play out.
One of the top ways to play all tech trends is by playing the growth of the cloud and cloud services. While the cloud is essentially a system to store data remotely from where it’s accessed, it’s still a strong growing trend as data needs continue to grow.
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Not all plays on cloud services are in the US, either. German giant SAP SE (SAP) is an app software play working on more cloud integration. That’s leading to strong sales and profits, which is likely to continue to attract investor interest.
Action to take: Shares of this international player are up just 12 percent in the past year, underperforming the S&P 500. But with steady revenue growth and fat profit margins over 20 percent, the ongoing move to the cloud can likely lead to faster growth this year. Investors may like shares, and the company recently raised its dividend for a starting yield of 1.6 percent right now.
Traders may like the June $145 calls. Last going for about $5.40, they’re near-the-money and can offer mid-to-high double-digit upside on a move higher in shares in the next few months.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.