Best Tech Investment amid Slowing Recovery:- Apple (AAPL), Oracle (ORCL) and Amazon (AMZN)?

US economy ‘heading for a double-dip’ had been the topic for hard debate recently. Still, there are no clear pointers whether it will enter another recession or the modest signs of improvement will steer it through the dusty patch. One of the major challenges that the economy is facing is the unemployment scenario, which is not improving along the expected lines. As a result, outlook for consumer spending & confidence is not looking good for Technology companies.

In this post I will also share my investment opinion on top three tech companies- Apple (AAPL), Oracle (ORCL) and Amazon (AMZN), so that you can have a clearer idea as of what to expect from them, and what are the key challenges they might face in the times ahead.

Top Technology Stocks you should buy for 2012

These three technology giants have some strong credentials that investors might rely upon amid current economic turmoil. We have already seen that tech stocks have got their beating as consumers are not spending enough to drive growth, then the debt situation is not improving and the European crisis is uncovering more economic jitters. NASDAQ is now trading at 52 week lows and it is surely threatening to break much lower. But things are not that bad for these three companies, rather experts believe that they could rather show some strong performances in next few quarters. Let’s dig into details:-

It is for sure that these tech companies have something or the other in their arsenal through which they can ensure growth even in the outlook as bleak as at present, let’s see what’s ahead for Apple.

Where is Apple Headed?

Lately, there was too much buzz about the iPhone5 launch, but now all that will have to wait. However, we have the new iphone4S which should help the company increase its share in the smart phone market.  Despite the economic uncertainties, Apple has surprisingly continued with its growth momentum and we can expect a series of new launches by early 2012.

Analysts Forecast on Apple Stock

Most analysts are optimistic about iphone4 sales and expectations are that the stock price will be making new highs by early 2012. I was amazed to see the Apple share forecast on CNN Money, in which 50 financial analysts participated. It was a unanimous ‘Strong Buy’ decision for next 12 months and the price target ranges between $440- $666.

My View on Apple Stock

Personally I would bet on Apple stock to reach $500 till January 2012 and then I will take a fresh view on the stock. My key puzzle is about the cash reserves that the company is sitting on right now. If apple makes it clearer as of what they are going to do with that cash, pay dividends or make strategic buyouts, only then we can take a longer term call on the stock price.

Globally, demand for Apple products is on the rise, now we only need to watch how the new CEO delivers on investor’ and consumer’ expectations. To cut it short, Apple remains the best buy in the technology space. Next, let’s see what’s on cards for Amazon?

Apple Stock Forecast Chart

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Check back for my strategy and analysts views on Amazon and Oracle