Innovative Tech Companies Will Continue to Prosper

• By the BullMarket.com Staff
• On 9:58 am EDT, Friday October 23, 2009

The stock market rally from the depths of the despair that gripped the nation earlier this year has been impressive. Leading the way has been the nation's bellwether technology companies. The tech-heavy Nasdaq Composite Index is up more than 35% since the end of last year, easily outpacing the broader S&P 500.

This market isn't like the dot-com boom, when untested start-ups zoomed to stratospheric heights, questionable business plans be damned. Smaller stocks have taken part in this rally, to be sure, but this time around investor attention is equally drawn to large capitalization technology stocks, including some one-time dot-com darlings.

One of our long-time favorites, not surprisingly, is Apple (Nasdaq: AAPL - News), maker of the iconic Macintosh, iPhone, and iPod product line. Despite a stock price that has more than doubled in the last year, Apple still has enough wind at its back to move much higher. The stock has returned over 120% since BullMarket.com added it to its Recommended List late last year.

Not to be outclassed is Google (Nasdaq: GOOG - News). Its lead in search unmatched, Google is banking on its Android operating system to make it a player in the mobile market, possibly with Verizon Communications (NYSE: VZ - News). We don't expect Blackberry maker Research in Motion (Nasdaq: RIMM - News) to fade away, either, though it has run afoul of the expectations game at times.

Microsoft (Nasdaq: MSFT - News), another BullMarket.com Recommended List stock, has been less loved by investors the past couple of years, but Mr. Softie is sitting on a pile of cash, and its newly introduced Windows 7 operating system is bound to spur a corporate upgrade cycle. It also finally has a search deal with a revitalized Yahoo (Nasdaq: YHOO - News). With ample cash of its own and some juicy foreign investments, Yahoo may not be Google, but it is gaining attention. The editors at BullMarket.com have profiled all of these tech leaders in recent issues.

We believe the Internet and mobile communication sectors still have long runways for growth and innovative companies will grow along with them. Other names in our spotlight of late include the one-time dot-com darling but now solid Amazon.com (Nasdaq: AMZN - News); wireless chipmakers Skyworks (Nasdaq: SWKS - News) and Qualcomm (Nasdaq: QCOM - News); rich media software provider Starent Networks (Nasdaq: STAR - News), profiled days before it was snapped up by Cisco Systems (Nasdaq: CSCO - News), and the Web analytics firm Omniture (Nasdaq: OMTR - News), which occupied a spot on our Recommended List long before Adobe (Nasdaq: ADBE - News) swept in to buy it.

A daily investment service that identifies winning long-term growth, value, and income stocks, BullMarket.com's Recommended List of stocks outperformed the S&P 500 by nearly 15% in 2008 and was up over 33% YTD as of the end of September. BullMarket.com has recently published a number of reports evaluating leading tech and telecom companies. Sign up for a free trial today and receive actionable market commentary, real-time trade alerts, and access to 40+ high-quality recommended stocks.

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