Investors can put a wide range of investments -- including stocks, bonds, index funds, mutual funds, and ETFs -- into their IRAs. Financial advisors usually suggest sticking with conservative, income-generating stocks that will benefit from the long-term compounded growth of reinvested dividends.However, younger investors can also put a few speculative stocks in their IRAs, since a single multi-bagger can more than offset a few losers. However, there's one speculative tech stock that I'd avoid putting in an IRA, even for younger investors: Snap (NYSE: SNAP), the maker of the ephemeral messaging app Snapchat.Image source: Getty Images.How does Snap make money?Snap generates most of its revenue by selling several types of ads on Snapchat -- including web view ads (which let users visit a site without leaving the app), app-install ads, promoted articles for its Discover tab, video ads, sponsored geofilters (based on a user's location), and sponsored lenses.Snap recently switched over to … [Read more...] about The 1 Tech Stock I’d Never Put in an IRA
Best tech stocks
The tech sector has been rattled in early 2018. Many familiar names delivered strong returns in January and February, while others saw their share prices falling -- sometimes for no good reason.Some of the tickers in that second category look like great buys right now. To help you separate the beaten-down winners from the tech stocks that deserved a haircut in early 2018, we asked your fellow investors here at The Motley Fool to share their idea of the most timely names in this sector.Read on to see why Universal Display (NASDAQ: OLED), American Tower (NYSE: AMT), and Okta (NASDAQ: OKTA) look like the tech sector's most low-hanging fruit right now.Image source: Getty Images.A niche play in the cybersecurity marketChris Neiger (Okta): There's no debating that many companies need better ways to protect their data, both for their customers' sake and their own. Okta helps fill that role by helping companies set up and manage the correct permissions for their employees. This includes login … [Read more...] about 3 Top Tech Stocks to Buy in March
Growth-oriented investors love tech stocks, which outperformed many other sectors over the past few years. However, investors shouldn't chase overvalued stocks in this sector, which have high multiples that don't match their growth prospects.Let's examine two tech stocks which are definitely overvalued, and another one which might seem pricey -- but could still be worth buying.Overvalued stock: AmbarellaAmbarella (NASDAQ: AMBA) makes image processing SoCs (systems on chips) for action cameras, security cameras, dash cams, drones, and other devices. It rose to prominence as a supplier for GoPro, DJI Innovations, and Hikvision -- the world's largest makers of action cameras, drones, and security cameras, respectively.Image source: Getty Images.But as Ambarella grew, bigger chipmakers took notice. Qualcomm launched new Snapdragon SoCs with integrated image processors and baseband modems to compete with Ambarella in the connected camera and drone markets. Intel acquired visual processing … [Read more...] about Are These 3 Tech Stocks Wildly Overvalued?
The technology sector isn't the ideal place for income investing because companies in this sector often carry very low yields. Tech companies usually reinvest earnings into their businesses to stay ahead of the curve, so the sector's average yield is just 1.26%.The low payout of tech stocks will discourage income investors, especially considering the volatile nature of the sector. But there are a few hidden gems that could become lucrative dividend plays in the long run, including chipmakers NVIDIA (NASDAQ: NVDA) and Skyworks Solutions (NASDAQ: SWKS).Here's why income investors should take a closer look at these two tech stocks:Image Source: Getty Images.NVIDIAGraphics specialist NVIDIA is known for attacking fast-growing markets such as self-driving cars, data centers, artificial intelligence (AI), and video gaming. These have helped the chipmaker record blistering growth of late, but when it comes to paying a dividend, NVIDIA has been miserly.The stock's dividend yield is currently … [Read more...] about These 2 Tech Stocks Have Strong Dividend Growth Potential
Hedge funds have over $6 trillion worth of assets under management, so when the smart money starts moving into a stock, it's not unwise for investors to take notice, because it just might signal the start of an upswing in its value. Similarly, when the smartest guys in the room withdraw their money from a holding, you may want to pay attention to that, too, because it may be that they see problems others are missing.Certainly, investors should not blindly follow hedge fund operators into or out of a stock, since many times they can be wrong, but the movements of these billionaire investors can put a stock on your radar, or tip you off to dig more deeply into their businesses to ferret out areas of concern.To find out which stocks the smart money has formed a consensus on, personal finance website WalletHub examined the most recent SEC disclosures filed by more than 400 hedge funds to find their biggest holdings, newest positions, and recent exits. Below are the four top tech stocks the … [Read more...] about The Top 4 Tech Stocks the Smart Money Is Selling and the 2 They’re Buying