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The 'fab five' Tech stocks for 2014

usa stock market google facebook innovation media

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#1 Hum


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Posted 15 February 2014 - 11:07

1. Google

Google (GOOG) rose 58% last year and now has a $400B market cap, just ahead of Exxon (XOM) and behind only Apple Inc. Despite its size, it has remained aggressive in its acquisitions. It also appears to have a plan to grow revenues, in addition to its cash-cow search business, through the organization of massive amounts of information, automation, mobile, smart devices and artificial intelligence. Google is the consummate player in innovation and the captain of the fab five.

2. Facebook

Facebook (FB) has a close to a $170 billion market cap and gained just over 100% for 2013. In the age of social media, Facebook is the preeminent name, leaving LinkedIn (LNKD) and Twitter (TWTR) behind.  Zuckerberg took a botched IPO in May of 2012 and a company that was behind the mobile curve and brilliantly turned it all around by making great deals like stealing Instagram and monetizing the heck out of mobile. Even as the company gets criticized for losing the kids, it somehow continues to leverage its massive size and even to grow engagement and revenues.

3. Tesla

Tesla (TSLA) has a $24 billion market cap and gained over 300% in 2013. It represents an ideal the world aspires to, where green is sexy.

This has been an emerging theme since 2008, when crude oil skyrocketed to $148/barrel and the need for alternative energy sources became apparent. The Tesla mystique reads that maybe you can have it all - great style and performance with a declining carbon footprint. Meanwhile, CEO Elon Musk is really making it happen by building a stellar high-performance automobile that runs cheaply with less pollution.

There are so many reasons why Tesla shouldn't wouldn't and couldn't work but Musk ignores all of them — and pulls the whole world along with him.

4. Priceline

Priceline (PCLN) gained 46% in 2013 and sports a market cap of $65 billion. It may be the quietest of the group, while it continues to execute flawlessly and broaden its service set.

It is the oldest company of the bunch, a survivor of the dot com bust, and in many ways represents the enduring promise of those times. Simply, it makes travel more convenient and cheaper for its users while managing to avoid getting disrupted by newer entrants such as AirBnB.

5. Netflix

Netflix (NFLX) gained 295% in 2013 and has a market cap of $26 billion. It is changing the way we consume video and disrupting how we consume entertainment media. It's still incredibly early in the transition from bloated cable contracts to steaming à la carte, as evidenced by today's news of Comcast (CMCSA) taking Time Warner Cable (TWC). But Netflix thrives amid the old guard, even as it challenges them.