Analysis of Investors’ Choices in Technology Companies

Abstract

This paper examines how to analyze which technology companies are suitable for different types of investors through various financial indicators. First, this paper chooses four technology companies, namely Tesla, Tencent, Microsoft and Apple. Next, Yahoo searches for various profit and loss metrics for several companies and groups these metrics into three categories, including risk, profitability and market ratio. Finally, reasonable suggestions are given by analyzing the investment preferences of nine kinds of investors. The nine types of Investors are price/earnings to growth ratio investors (PEG investors), discounted cash flow Investors (DCF investors), income investors, value investors, index investors, momentum investors, insider investors, ratio analysis and stock buyer. According to the analysis results, PEG investors and DCF investors may choose Tesla, while DCF investors and income investors may choose Tencent. In addition to index investors, other investors are likely to choose Microsoft. Apple is likely to be picked by PEG investors, value investors and momentum investors. The research significance of this paper is to help investors who lack certain financial knowledge to choose their own types of stocks, and to describe the characteristics of different types of investors to help investors judge which investment method is suitable for them.