2018 has been really great for all those who have invested in tech stocks. This year, Technology Select SPDR ETF (NYSEMKT:XLK), an exchange-traded fund which holds 75 tech stocks has gained 13% profits, which is more than double of the overall returns of S&P 500.
Fortunately, even with such returns, there are still stocks to buy at a modest price. Mentioned below is the two stock which can generate a handsome income if invested early.
Amazon (NASDAQ:AMZN): No one doubts about Amazon’s growing power as an e-commerce giant, especially in the U.S. It has amounted to as much as 44% of the overall digital purchases made last year, which is equivalent to 4% of the total retail sales in America. It has generated revenue of $32 billion in the last quarter in North America alone.
Though e-commerce is what Amazon is known for, much of its overall revenue is generated from Amazon Web Services (AWS), its cloud computing segment. Last quarter, while the company’s e-commerce department managed to generate $1.3 billion of operational income, its AWS segment amassed $1.6 billion.
The revenue being generated from AWS is increasing at a rate of 49% every year and its operating income has jumped to a massive 79% this quarter. The segment operates on a staggering margin of 27%. On the whole, this year, the cloud computing department provided the company with 62% of its total operating income.
The revenue generated through the company’s AWS segment has enabled Amazon to expand its business at an international level and to invest in artificial intelligence systems as well as its audio and video business.
Though e-commerce is the biggest business of Amazon, its AWS segment is the one which generates revenue on a consistent basis making it one of the best stocks to invest in right now.