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Why Are Tech Stocks in Free Fall?

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We have all heard the buzz on the Internet about how “tech” stocks are poised to take a huge financial beating as the economy continues to evolve. There is no doubt that the Internet has played a major role in this phenomenon, and in particular the soaring popularity of social media websites like Facebook and MySpace.

In fact, these two sites have become some of the most popular and most profitable companies in the technology sector, and they are poised to do even better in the future. If you want to make money trading on the stock market today, you absolutely must buy and/or trade technology stocks. Here are just some of the main reasons why:

There is a growing sense of Internet addiction amongst the population. More people rely on their computers and Internet to accomplish everyday tasks such as ordering take-out, researching information, checking the weather, writing papers, looking up information, and so forth.

Because of this, there is a high demand for Internet businesses and a correspondingly high demand for Internet stock. Simply put, because more people are relying on computers for everyday tasks more companies are looking to capitalize on this need. By making the Web available to more people, more companies will be able to tap into this massive market.

One final reason why are tech stocks in free fall is because the companies that are creating these technologies are becoming more lucrative than their older counterparts. As we mentioned earlier, the Web has made many companies financially secure and in many cases generate enough profit to outsource part or all of their research and development costs.

As a result, these companies are able to operate and reinvest their profits in new technologies. The bottom line is that by choosing to invest in these types of stocks you are getting a very solid return on your investment.

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