Tech companies that are unprofitable need to have revenue growth to justify continued investment. Profits are also important, and for mature companies that produce profits, the price-to-earnings ratio tells you how much the market values those earnings.
Some of the top tech companies to work for are also some of the most profitable. Google is a good example: The company is one of the top employers in the world, and its employees praise the fast-paced environment and generous benefits, including health, dental, and vision insurance, stock options, and paid time off. Business school graduates can find opportunities in areas like finance, operations, and marketing.
In 2022, a handful of the Top Innovators used tech for good in ways that saved lives. They ranged from helping Ukrainian refugee children to preventing mass wildlife extinctions, and from combating wildfires to cleaning up water and fighting waste.
If you want to invest in tech companies, look for firms that have a high Morningstar Economic Moat Rating, which is based on the chance of a firm being able to protect its share of the market for 10 years or more. You should also consider a tech company’s cash flow and balance sheet, as well as the strength of its sales and product pipelines. ClickIT is an excellent example of a tech company that has both a strong cash flow and a promising pipeline, making it a great tech company to buy into in the long run.