The Nasdaq Composite Index has been one of the best-performing indices over the past year compared to the S&P 500 and the Dow Jones Industrial Average. It is weighted heavily towards the tech sector, which has seen rapid expansion and growth recently.
Invesco QQQ Nasdaq 100 ETF (NASDAQ:QQQM) tracks the Nasdaq-100, the top 100 non-financial companies listed on the Nasdaq. This is a great metric for the technology sector as a whole, which has increased by 43% in the last year.
Here are some companies that trade within the Nasdaq, which are great options for investors seeking stocks related to technology and other similar services.
Meta Platforms (META)
Meta Platforms (NASDAQ:META) is a media services company that operates Facebook, Instagram, Messenger and other social media applications.
On Feb. 1, Meta released their earnings for the fourth quarter full year 2023, which stated that total revenue increased by 25% and net income more than tripled compared to the previous year. It was also announced that Meta would start to distribute a quarterly dividend of fifty cents per share and another share buyback increase of $50 billion was approved. Directly following this press release, its stock price surged by over 20%.
TikTok is a popular social media application that has been losing users following the House voting in favor of a bill to ban the company from operating within the U.S. ByteDance, TikTok’s parent company, is beholden to Chinese laws which has lead to fears of data sharing on the part of legislators. This has led to previous TikTok users migrating to apps such as Instagram Reels, which may lead to larger user growth for Meta Platforms and similar companies.
Meta Platforms is a strong social media company with ad revenue that increased by 24% year-over-year and the initiation of a dividend payout to investors. It is a solid option for investors looking for a buy and hold option, especially following the issues surrounding TikTok.
Netflix (NFLX)
Netflix (NASDAQ:NFLX) is a movie and entertainment business that provides a subscription-based streaming platform that offers access to movies, documentaries, and TV shows.
Over this past year, Netflix’s share price has more than doubled, mostly due to increased subscriber growth and an improved financial position.
On Jan. 23, Netflix reported earnings for the fourth quarter of the full year 2023, stating that total revenue grew by 13% year over year. The net income for Q4 2022 was $55 million, which increased to $938 million in Q4 2023.
Year-over-year subscriber growth increased by 13%, which is the largest increase in subscribers that Netflix has experienced since the Covid-19 pandemic. And with the continued efforts to curb its users’ password sharing. Netflix still may continue to see double-digit subscriber growth.
Nvidia (NVDA)
Nvidia (NASDAQ:NVDA) is a semiconductor production company with its flagship products being GPUs for gaming and other virtual computing services.
Its stock price has more than tripled within the last year. Nvidia is one of the top stocks that has benefited tremendously from the increased investor interest in the tech sector and the buzz surrounding generative (AI), in which Nvidia is a large provider of chips to support that popular technology.
Nvidia has followed in the footsteps of stocks like Meta Platforms by initiating a dividend payout to investors. Its quarterly dividend is four cents per share.
On Feb. 21, Nvidia released its earnings for the fourth quarter of the full fiscal year 2024, in which it stated that it surged by 265% and earnings per share increased by more than eightfold. This beat analyst expectations, and the stock price has risen 30% since this earnings release.
Data center revenue also saw a huge jump year-over-year of 409%, and total gaming revenue rose by 56% within the same period. The move towards generative AI innovation puts Nvidia in a strong position to continue being profitable.
As of this writing, Noah Bolton did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
