As the market nears an all-time high, it’s no longer uncommon for unprofitable tech companies to hit more than 50x sales in the next year. This foam should be a bright red flag for investors as it indicates that the market is saturated with greedy speculators chasing hot stocks rather than doing their due diligence.
When the market finally collapses, these bubbling stocks will inevitably burst. Meanwhile, slow-growing, dividend-paying technology stocks that trade at lower valuations should remain stable. Let’s take a closer look at three companies that fit this description: oracle (NYSE: ORCL), Cisco (NASDAQ: CSCO), and Verizon (NYSE: VZ).
In recent years, Oracle has moved its on-premise enterprise software and databases to the cloud. This transformation has been slow, even after NetSuite was acquired to speed the process, and Oracle has often been compared to IBM when its sales growth stalled …