The Nasdaq Composite Index has shown remarkable performance compared to the S&P 500 and the Dow Jones Industrial Average over the past year, largely due to its significant weighting in the technology sector, which has experienced rapid expansion.
The Invesco QQQ Nasdaq 100 ETF (NASDAQ:QQQM) tracks the Nasdaq-100, which includes the top 100 non-financial companies listed on the Nasdaq.
This ETF provides a strong metric for the technology sector, which has seen a 43% increase in the last year.
For investors seeking stocks related to technology and similar services, several companies trading on the Nasdaq present attractive options.
One such company is Meta Platforms (NASDAQ:META), a media services company that operates Facebook, Instagram, Messenger, and other social media platforms.
Meta Platforms recently reported a 25% increase in total revenue and a more than threefold increase in net income compared to the previous year.
The company also announced the initiation of a quarterly dividend and a $50 billion share buyback increase, leading to a surge of over 20% in its stock price.
TikTok, a popular social media application, has faced a decline in users following legislative actions aiming to ban the app's operation in the U.S.
Due to concerns about data sharing and compliance with Chinese laws, users have shifted to alternative platforms like Instagram Reels, potentially boosting user growth for Meta Platforms and similar companies.
Netflix (NASDAQ:NFLX), a subscription-based streaming platform for movies, documentaries, and TV shows, has seen its share price more than double over the past year, driven by increased subscriber growth and improved financial performance.
The company reported a 13% growth in total revenue and a substantial increase in net income for Q4 2023.
Nvidia (NASDAQ:NVDA), a semiconductor company known for its GPUs, has witnessed its stock price triple within the last year.
The company reported a remarkable 265% surge in revenue and an eightfold increase in earnings per share for Q4 2024, surpassing analyst expectations.
Similar to Meta Platforms, Nvidia has initiated a dividend payout, reflecting its strong financial performance and growth prospects, especially in generative AI.
Nvidia's data center revenue soared by 409% year-over-year, while total gaming revenue increased by 56%.
The writer, Noah Bolton, does not hold any positions in the mentioned securities, and the opinions expressed are their own.