1 No-Brainer Stock to Buy With $250 and Hold for 10 Years
Over much of the last decade, investors rewarded technology companies for spending heavily on growth initiatives even at the expense of profitability. The strategy was to attract as many users and customers as possible, and then monetize them later.
But the economic winds have shifted, and interest rates are no longer near zero. Running enormous losses is riskier for tech companies today because financing costs are much higher. It's also harder to raise fresh equity funding because investors can earn attractive risk-free returns on bank deposits and Treasury bonds.
As a result, the tech sector has shifted its focus to delivering profits even if it means generating more moderate rates of customer growth. Music and podcast streaming giant Spotify Technology (NYSE: SPOT) is one company pulling off this transition masterfully, and although it still has work to do, investors have sent its stock soaring 27% in 2024 already.
Source Fool.com
