Identifying the best forever tech stocks can often be a great way for investors to build wealth in the stock market. When you look at some of the largest companies in the stock market, they’ve continued to dominate and outperform the market. These tech stocks to buy and hold are great investments for the long term. They’re at the forefront of some of the most emerging technologies and are well positioned for long term growth.
These companies provide investors with a peace of mind. Mainly due to the strong moats and fortress balance sheets to weather any storm. Furthermore, they are often able to generate robust free cash flow, signaling their ability to manage CAPEX spending. With a secure track record of sustained excellence, these three tech stocks present compelling narratives for long term growth and stability.
Now, let’s explore the three best forever tech stocks to buy in January 2024!
Alphabet (GOOG, GOOGL)
Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) stands in the number one spot for the best forever tech stocks to buy in January 2024. The company is seeing an acceleration in revenue growth and EPS, driven by demand for cloud-based artificial intelligence solutions.
Alphabet has arguably been one of, if not the most important technology companies over the last two decades. Their search engine, Google, is the most dominant search engine in the world processing more than 8.5 billion searches per day. Furthermore, YouTube is slowly becoming a primarily search engine and driver of growth.
Investors are becoming increasingly excited about Alphabet’s generative AI strategy, and how that might impact revenue growth and operating income in the next few years. In their latest quarterly results, Alphabet’s revenue grew 11% YOY to $76.7 billion. Operating income skyrocketed to $21.3 billion, as AI integrations continue to drive momentum in the cloud. Alphabet still appears to be cheap relative to its peers, making it a no-brainer tech stock to buy for 2024.
Meta Platforms (META)
Meta Platforms (NASDAQ:META) is a top tech stock that investors cannot ignore in 2024. The company just surpassed the $1 trillion market cap status, as analysts turn bullish on their generative AI strategy.
It is quite remarkable the business that Mark Zuckerberg has managed to build since its early inception as Facebook. The company has transformed into a cash generation machine, and even in the midst of mistakes it still remains extremely resilient. For instance, their bet on the metaverse has yet to materialize, and the company’s division is losing a ton of money. Meta Reality Labs has lost $46.5 billion since 2019. Yet, the business still remains in great financial shape.
Meta’s had implemented a broad restructuring plan in 2023, and their investments into generative AI will be a primary growth driver this year. In Q3 2023, Meta’s revenue grew 23% YOY to $34.1 billion. Net income increased to $11.58 billion, or $4.39 per share. The advertising market is in full recovery mode, and more favorable economic conditions mean advertisers are willing to spend more. With Meta surpassing the $1 trillion market cap status, the future looks extremely bright.
Mastercard (MA)
Mastercard (NYSE:MA) is an American multinational payment processing giant headquartered in Purchase, New York. They’re undoubtedly one of the best tech stocks to buy and hold over for the long term.
The 2023 fiscal year has definitely been all sunshine and rainbows for Mastercard and many of its competitors. Ballooning debt levels and higher interest rates have translated to significant revenue, EPS and FCF growth in FY23. Furthermore, the company has averaged more than 20% growth in its dividend per share over the last decade.
In their latest financial results, Mastercard’s revenue increased 14% YOY to $6.5 billion. GAAP EPS skyrocketed 31% YOY to $3.39 per share, with operating margin up 4.8% from Q2 2022. The company continues to execute on their long term strategy, with increased focus on cross-border transactions and business travel. As the economy gets back on track, Mastercard will be poised to benefit from increased spending across the globe.
On the date of publication, Terel Miles did not have (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.