Investing in the stock market is definitely not a random process. Investors make it their duty to select the most promising companies. Digital businesses are particularly popular. Precisely, which companies should not lose sight of and on whom we can (should) bet for the future?
GAFA: the winning quartet
GAFA? These are simply the initials of the four big digital companies, to be followed closely. G for Google. The Mountain View company is in the top 5 of the world’s market capitalizations with a value in excess of $325 billion (it is in 5th place). The first A for Apple, the creative brand of the legendary iPhone, which is at the top of the ranking with a capitalization exceeding $635 billion. F for Facebook, whose market capitalization is estimated at more than $306 billion. The second A is Amazon. Its market capitalization is more than $255 billion. These digital companies are simply unavoidable for investors. For comparison, the companies making up the GAFA weigh more than the CAC 40!
What about other digital companies?
While the GAFA clearly dominates among digital companies, there are also other companies that clearly deserve attention. More specifically, other sectors are of interest.
These include SaaS or Software as a service. These are interactive online programs that work in a specific way: the software is located on remote servers, which means that users do not have to install it on their computer. These users then use the program for free (or for a subscription) but do not bear the cost of the user license.
Today, this market is worth nearly $200 billion, or nearly one-tenth of all IT costs. This is also a promising area that is likely to grow strongly in the coming years. Especially since these offers are particularly inexpensive.
We must also mention FinTech or financial technology, a rapidly expanding sector. This branch uses technologies in the service of finance. Some of the most common services in this area include online banking, mobile payment and participatory financing.
You can find a large part of these companies in CFD on Plus500.