The world is changing quickly and that change is being driven by technology. From your fridge to financial markets, technology is increasingly used in our everyday lives. Given the pace of technological development, and its impact on the investment landscape it’s vital to keep up to date with the latest tech news.
ausbiz has the latest tech news about the world's best (and sometimes worst) hardware, apps, and much more. From top companies such as Google, Apple and Tesla to tiny startups vying for your attention, ausbiz has the latest news in techs and startups.
Our experienced team of anchors speaks with expert guests about strategies for investing in tech via equities and other asset classes so investors can gain exposure to the tech companies and themes impacting our lives. They also explore regulatory changes happening in China, and the looming threat of regulation in western countries as well.
What’s all the hype around the FAANGs?
When we consider the tech companies that influence our lives and the stock market we often refer to the FAANG stocks. These tech giants make up a sizable portion of the NASDAQ and S&P500, and in fact, over the past decade, the FAANG stocks have grown faster than the overall S&P 500 or the more tech-focused NASDAQ.
FAANG is an acronym used to describe some of the most prominent companies in the tech sector. Facebook (NASDAQ: FB), Amazon (NASDAQ: AMZN), Apple (NASDAQ: AAPL) Netflix (NASDAQ: NFLX), and Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL).
Australian tech
Investors may also want to consider Australia’s nascent tech sector as an investment opportunity, and can do so via equities, ETFs and private investing.
Investors should keep in mind tech is not just information technology, the ASX All Technology Index (XTX) for example features technology related industries such as health care technology, consumer electronic and companies operating online marketplaces.
Why invest in tech?
Tech stocks performed exceptionally well through the pandemic as a rule, as work from home encouraged more cloud adoption and the way in which we interact and consume content changed dramatically.
That outperformance is not just a function of the pandemic, however, as tech transforms every aspect of business and life. FAANG stocks have historically outperformed the S&P 500 index. As of July 2021, the worst-performing FAANG stock, Alphabet, has returned more than double the index average since the market bottom in March 2009. Meanwhile, Netflix stock is up more than 100-fold, and Amazon and Apple shares are up more than 50 times.
Valuing tech stocks can be difficult, as they are often high growth companies more likely to operate at a loss as they seek rapid revenue growth and customer acquisition.
Tech stocks perform especially well in times of low interest rates, but can suffer in value when inflation or interest rates start going up more than expected, because it reduces the current value of the future stream of earnings.
Tech news on ausbiz
The ausbiz team covers tech news from startups to big tech, as well as investment opportunities and ideas touching base with a broad range of expert guests here and around the world.
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