"The tech sector has been one of the most reliable industries for long-term returns. For instance, the Fidelity MSCI Information Tech ETF ( NYSEARCA:FTEC) has an annualized 22.4% return over the past decade. That's enough to outperform the S&P 500, but some tech stocks are poised to fly higher than others. Investors who want to beat the S&P 500 in 2026 may want to consider these picks."
"Duolingo shares did get a little too hot when they were trading for $540 per share, but that's because the company has excellent growth rates. The language learning app posted 41% year-over-year revenue growth in Q3 on the back of 50 million daily active users and a 36% annual growth rate in its daily active users. Duolingo has even expanded its profit margins during this stretch, which makes it more promising now that the stock price has dropped sharply."
"The biggest concern is that ChatGPT and other language learning models can create their own language apps within seconds. Users can put in prompts and start learning a new language. While it's a risk to consider, Duolingo's growth rates are still impressive, and the company is investing in AI to give itself an edge. The stock may dip a bit more for the rest of the year due to negative sentiment, but it can lead to a buying opportunity."
Technology has delivered strong long-term returns, with the Fidelity MSCI Information Tech ETF ( NYSEARCA:FTEC) returning an annualized 22.4% over the past decade. Some individual tech stocks could outperform the S&P 500 in 2026. Duolingo shares have fallen sharply—more than 40% year-to-date and over 60% from the 2025 high—despite robust fundamentals: 41% year-over-year revenue growth in Q3, 50 million daily active users, 36% DAU annual growth, and expanding profit margins. AI presents both a risk from language models and an opportunity as Duolingo invests in AI. Amazon benefits from e-commerce and AWS and is pursuing AI-driven growth.
Read at 24/7 Wall St.
Unable to calculate read time
Collection
[
|
...
]