(ThyBlackMan.com) Tech companies are a great investment if you have the funds. From hardware to social engineering, if you can get yourself a couple of shares and just turtle it—wait it out—you’ll a turn a profit. Now, this is particularly true for companies that actually create something. Your Apples, Googles, Microsofts, Nintendos, Sonys…Tandys. I’m certain Tandy no longer makes anything. As a matter of fact, Tandy is cold and in the ground.
Rust in pieces, Tandy. Your computers were terrible.
Investors will get their earnings reports, big money investors often get a seat on a board where their voice can be heard and any announcement can impact their fortunes that are tied to the company. They well also weather bad economies to keep their interests in a company. Potential and consistency are two things that keep them around.
A new device that garners a lot of buzz is boon while a device no one can bother with or are mixed on can raise concern. You also have startups that garner buzz or the concept is so unique or practical that it’s best to get in on the ground floor.
Tech Shares Have Dipped
This brings us to the recent news that the Department of Justice and the Federal Trade Commission are gearing up for antitrust investigations into the workings of these companies. Anything about the government sniffing around or bringing executives in is like kryptonite for tech shares. Depending on the gravity of the investigation the damage can really raise alarms.
The gravity in this case? Competition practices. To the consumer this is a rich person’s problem. It’s a business person’s issue. Data leaks and security issues are what hit us the hardest but it has become so commonplace—sad I know—that shares can weather it.
However, this hits right at investors’ pockets. For larger investors, this is a nuisance. Most of the big name tech companies we know in the U.S. have been investigated by the government and a majority of those have been brought in on business practices. It’s happens roughly every year for at least one company.
The Safe Bet and The Informed Bet
These things make news when the market is impacted. By the late-2000s, tech has been considered a safe bet. It’s why whenever someone says if they had a time machine, they would go back and invest in X-company. The thing is, it’s a safe bet because there is money to be made but it’s an informed bet as if you consider what legal hurdles a company will run into before throwing in with them.
Which is something investors do anyway. If you have thousands or tens of thousands to put on a share, you’re not going to blindly drop that cash. That’s thousands and tens of thousands. You want to make sure it’s safe or at least know that the company has made it through these legal storms before. Better yet, you’ll want to know how a company’s cash flow looked during and after.
Of course, this is no indication that a company will rebound quickly because it has hot products in the works or that it’ll recover slowly. Company leadership, press and financial damage control, the state of the economy and hot products all factor into that.
Yeah, it’s a lot to consider before throwing in with any company. Sure, tech shares have dipped but it wouldn’t be the first time. They dipped last year because of data breaches. Just this year, Nintendo and Sony took a hit when Google announced the Stadia but Nintendo and Sony’s shares always rebound fairly quickly because they always have a hot product in the wings.
It’s nothing new but it’s definitely worth paying attention to if you have investments or if you’re considering diving in.
Staff Writer; M. Swift
This talented writer is also a podcast host, and comic book fan who loves all things old school. One may also find him on Twitter at; metalswift.