Web: Analysts say payment companies are a better bet then big tech

August 2018 by: From The Web

Big Tech companies have hit a speed bump. After powering market gains in recent years, investors are questioning whether the likes of Facebook can keep growing at awe-inspiring rates. With business models that rely on selling user data to advertisers are under fire in Washington and Brussels, there are better ways to bet on technology, some market watchers say.

Analysts at Morgan Stanley have recommended rotating out of technology stocks; they think payment businesses like Visa, PayPal, and Worldpay are better bets for investors’ portfolios. Even if the economy slows down, such companies will benefit from growth in electronic transactions as well as consumer spending, which tends to hold up better than most investors appreciate, they said. “These are some of the best businesses there are,” a research note reads, written by analysts led by James Faucette.


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