Successful tech companies can change hands for vast sums of money. The latest example of a mega-bid for a tech company came from Elon Musk. As he often does, the Tesla CEO made waves on social media, quite literally, by offering $43 billion for Twitter.
The offer has sparked a heated debate among shareholders, financial analysts, tech experts, and everyone in between. In response, Twitter’s board has enacted a so-called poison pill strategy. This gives existing shareholders the right to buy additional stock at a discounted price to protect the company from a hostile new investor.
Musk Makes a Move for Twitter
The situation, as Musk probably predicted, is messy. However, away from the implications and commentary, the takeover bid shows the significance of tech companies and their stocks. Whenever one of the major companies is sold or the subject of a takeover bid, it becomes headline news. This is why tech stocks are popular investments for those with an interest in the financial markets. Naturally, like all investments, tech stocks aren’t guaranteed to provide a positive return. But even though they can be risky, they still generate a lot of investment interest.
One of the reasons for this is the role digital tech plays in our lives. Ever since the internet came into its own back in the noughties, many aspects of modern life have gone digital. From communication and entertainment to retail and banking, almost everything we do happens on a computer or mobile. Twitter, Google, Facebook, and Apple et al. have become multi-billion and multi-trillion dollar entities. This subsequently has made tech stocks a go-to option for investors.
Tech Companies Are Popular with Investors
For anyone willing to accept the risks and potential rewards of investing in tech companies, the obvious question is, which stocks are best? In reality, stocks can’t be defined as the “best” or “worst”. However, to get an idea of what investors are optimistic about, you can look at the most popular tech stocks. Given the move Musk made in April 2022, Twitter stock is one of the year’s notable interests so far. However, it’s not the only company to stand out. Looking through a rundown of popular tech stocks, some of the perennial performers to note are:
- Apple – Market cap of $2.7 trillion
- Microsoft – Market cap of $2.2 trillion
- Alphabet (parent company of Google) – Market cap of $1.7 trillion
- Amazon – Market cap of $1.5 trillion
- Tesla – Market cap of $849 billion
Those are five of the largest tech stocks and, as it transpires, the most popular. That’s hardly surprising given the fact they are the go-to brands for all things digital. For example, there are 1 billion iPhone users around the world. Over 4 billion people use Google, Amazon is the largest retailer in the world. The list of reasons goes on. The point here is that the five tech stocks listed are popular because they play a major role in modern life. They’re at the forefront of innovation and they’re now indispensable.
That’s why investors value them. It’s why tech companies are worth vast sums of money to people like Elon Musk. Therefore, if you ever wonder why a Twitter takeover bid gets so much attention or the figures quoted for a company like Apple are so mind-boggling, it’s because tech is a central part of modern life. The last two decades have seen more and more parts of our life cross the digital divide. This has made tech companies extremely powerful and the biggest businesses in the world.