Best Tech Companies To Invest In

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Intuit Inc. (NASDAQ:INTU)

For a small business person or self employed individuals, taxes and accounting can be some of the most time consuming and involved processes. This is where Intuit Inc. (NASDAQ:INTU) enters the picture. They have two companies which are at the forefront of these markets, namely QuickBooks and TurboTax. What is most interesting about these companies is the size of the operating margins that they are able to generate. QuickBooks had revenue of $2.3bn in the previous financial year with operating income of $874m. However, the TurboTax franchise was able to generate operating income of $1.3bn on $2bn of Revenue.

There is also more growth on the horizon for both of these companies because of two very important developments. The first is a deal with American Express (1) to integrate the QuickBooks system into that of AMEX’s. This means that it will be easier for users of QuickBooks to get loans directly online. Another important development for TurboTax is the growth of self-employed individuals in the U.S. This is mainly as a result of the new providers in the “sharing economy”. These include drivers for companies such as Lyft and Uber and landlords who provide accommodation through AirBnB.

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Shopify Inc (NYSE:SHOP)

Shopify Inc (NYSE:SHOP) is an Ecommerce platform coming out of Canada that is already quite well known among online entrepreneurs. What it essentially provides is the opportunity for individuals to set up online stores that are hosted by Shopify. These users can then customize their online store with a number of different plugins and themes. The Shopify platform is also well optimised for use on mobile devices such as phones and tablets. They charge a subscription income for the hosting and payment processing and they currently have over 350k subscribers on the platform.

What is even more of a vote of confidence in Shopify was the announcement by Amazon that they would be partnering with Shopify by rolling out Amazon payments on the platform. Moreover, Shopify Inc (NYSE:SHOP) seems like it still has a lot of growth ahead of it given the number of entrepreneurs who are yet to expand and run their own online stores (46 Million by Shopify’s estimates). Although the company is currently making losses on the bottom line the top line growth is the key number to watch. As a relatively new tech company, capturing the market with customer growth is essential to securing dominance in the future.

About the Author: Spencer Mecham

Spencer is a Brigham Young University graduate with a degree in public relations. He has a passion for startups, recurring income, and digital marketing. Currently, Spencer does digital marketing for startups and runs his stock market training website,
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