Top Haven Information Technology Stocks

359 Hits 20UCS507_ Muthu Petchiappan Feb 21, 2022, 4:03 AM

Top Haven Information Technology Stocks

Microsoft’s moat lies in the strength of its Office brand. It also has a robust cloud computing division. In fact, Microsoft has a few different moats. This is mainly due to its portfolio of products. Microsoft divides its business into three divisions: Productivity and business processes Intelligent cloud Personal computing There are so many products to discuss that it’s easiest to just break down the highlights. Here are a few main takeaways from Microsoft’s business: Its cloud computing division, Azure, is the second-biggest in the industry. It now owns Activision Blizzard, LinkedIn and Xbox. Both its hardware and software divisions lead their respective industries. Its constantly releasing new products. So much so that it needs a separate 13-page document to report on them. It’s a safe bet that 99% of people reading this have used Microsoft Office (or Office 365) before. For years, its office suite was completely dominant. In fact, Word, PowerPoint, and Excel were basically synonymous with personal computers. To this day, Microsoft still owns 75% of the desktop OS market. It has expanded this Office suite into Office 365. Now, it can scale its solutions up or down. In recent years, Google has emerged as a major competitor. Other than that Microsoft Office is what makes Microsoft one of the three safe haven information technology stocks. More recently Microsoft has expanded its business by creating Azure. Azure is Microsoft’s cloud computing division. It currently owns about 21% of the market share. This puts it only behind Amazon Web Services. Azure is a major revenue-generator for Microsoft. This revenue allows it to expand into new markets. A few new markets include AR, VR, gaming, the metaverse and more. Microsoft’s main competitors are also safe haven information technology stocks.

Amazon’s moat comes from its fulfillment network. This fulfillment network is the result of 15+ years of intense customer-centric focus. It started with Amazon Prime. This is Amazon’s membership network. Prime was Jeff Bezo’s idea to prioritize its best customers. In exchange for a yearly fee, Prime promises free 2-day shipping (among other benefits). The program currently has about 200 million members. Amazon Prime creates intense customer loyalty. This insulates Amazon and is what makes it one of the top information technology stocks. To deliver on its “free 2-day shipping” promise, Amazon operates 175 fulfillment centers worldwide. These centers are run with help of about 200,000 robots. In addition to being one of the top information technology stocks, Amazon is also one of the safest warehouse stocks. For another company to compete, it would need to buy and operate its own centers. In the long term, Amazon wants to deliver products to “you,” not just an address. Amazon has completely mastered the logistics business. In fact, it probably does a better job at it than company’s whose entire business is logistics. The thing is, Amazon is much more than a logistics company. On top of its fulfillment network, Amazon owns Amazon Web Services (AWS). AWS is Amazon’s cloud computing branch. It currently owns about 41.5% of the cloud computing market. AWS is Amazon’s profit puppy and earned about $71 billion in 2021. It’s used by organizations of all shapes and sizes. To name just a few: The CIA, AirBNB, J&J, Netflix, Facebook, Kellogg’s, Shell and many more. AWS alone is more successful than most companies will ever be. On top of that, Amazon has also created the most extensive fulfillment network in history. This is why many investors believe in never betting against Amazon.

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