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Tuesday, July 1, 2014

COLUMN-Which U.S. tech stocks are the best bargains now?, (NASDAQ: AMZN), (NYSE: TWTR)

Many tech companies saw their high-flying stocks lose altitude this year.Leaders in social media like Twitter Inc. and LinkedIn Corp. fell more than 40 percent from their 2014 highs. Others, such as the retailer Amazon.com Inc. , took more modest drops, although shareholders might not have found them modest at the time.These stocks, among others, are cheaper than they were, but are they cheap enough? They almost certainly can't be considered bargains by normal valuation yardsticks. Their price-earnings ratios - when there are earnings - can run close to or into triple digits.Portfolio managers find, however, that some businesses offer sufficient growth potential to warrant bets around current prices. Kevin Landis, manager of the Firsthand Technology Opportunities Fund, has been adding to his position in Twitter, a longtime holding, because he expects the stock to improve over the long haul as the company evolves from an upstart held in tech portfolios into a respectable blue chip that will be far more widely owned.

Amazon.com, Inc. (Amazon.com) serves consumers through its retail websites and focus on selection, price, and convenience. Shares of AMZN traded higher by 0.06% or $0.21/share to $324.78. In the past year, the shares have traded as low as $279.33 and as high as $408.06. On average, 4657560 shares of AMZN exchange hands on a given day and today's volume is recorded at 2672623.

Twitter, Inc. (Twitter) is a global platform for public self-expression and conversation in real time. Shares of TWTR traded higher by 0.1% or $0.04/share to $40.97. In the past year, the shares have traded as low as $29.51 and as high as $74.73. On average, 26750600 shares of TWTR exchange hands on a given day and today's volume is recorded at 22832180.



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