Once upon a time, the stocks of American railway companies were the most desired for investors from all over the world. Then, the stand was taken by securities of metallurgic and oil companies, weapons manufacturers and gold miners. But it is a thing of the past. Our century is the epoch of the Internet and innovative technologies.

For the first time, the industry attracted immense attention in 1995. It began with a rapid growth of stock prices of Internet companies. Nobody understood anything, but it wasn't necessary. The sector went on growing. People believed that the global web would be able to change the established fitness of things completely. And lager sums of money were invested in these stocks. It ran to the absurd. Start-up companies with names containing the word "Internet" immediately attracted millions of dollars without a product, sales and profits. It's a common knowledge that the bubble burst in 2000. The scenario was not different from what usually happens at the bubble peak. Everyone who wanted to purchase stocks of this sector had already done it. There simply was no one to buy. However, investors began asking why lossmaking companies cost hundreds of millions of dollars.

The stock prices of the Internet companies collapsed and half of them went bankrupt. All this resulted in investors’ attention being deterred from this sector for several years. But as you know the history spirals on. And today the sector is extremely popular with investors from all over the world again. We see the corporations like Google and Alibaba easily making huge profits, and their stock price growing steadily.

Why the stocks of this sector are worth buying?

1. Innovative and Internet companies possess immense growth potential. The case is that on our planet, there is a large number of remote corners still not reached by the World Web. These very countries will be the tasty morsel for the companies to fight for, which will become a booster for their financial performance growth.

2. The corporations of this sector have enormous financial resources that they allocate in new products development: the companies dealing in the Internet technologies invest in completely non-core areas. This fact contributes to the companies efficiently developing innovations that we couldn't even think of before. For example, a well-known search engine Google develops unmanned vehicles. And Alibaba, which is engaged in the online retail development, invests in financial services. Such diversification can produce a positive effect on their financial performance and the corporations' quotes.

It's worth noting that both the car manufacturing and banking sectors are extremely conservative. While modern Internet giants take decisions far faster and keep moving forward. This is the reason why their revenues growth rates may accelerate in the years to come.

Let’s take a closer look at some of these companies:

1. Facebook is the world’s largest social network. It was not the first to appear but turned out to be the best, the fastest growing and the most large-scale social network in the world. Its main competitive advantage is that it’s simply unclear, how one can create another such enormous network. After all, everyone has been on FB for a long time. And no one is going to leave for somewhere else.

For many years, the company's main problem was a slow revenue growth, despite a rapid growth of the users' number. In the last couple of years, the situation has changed dramatically. The main income is generated by advertising, which is located on the social network pages with increasing frequency. The company continues investing in innovations, acquiring dozens of start-ups that possess promising technologies. Then, it quickly brings them to the market under their own brand.

All these factors allowed investors to reconsider their opinion regarding the future of Facebook.

2. Google is the most recognizable search engine. Google reigns in almost every country in the world. Today, it’s the most innovative corporation in the world together with Apple.

After having earned huge sums of money on advertising, the company proceeded to other sectors by buying up developments, teams, and patents. Currently, it owns the most popular Internet browser Chrome, Android operating system, and Google Maps cartographic service. As well as hundreds of other no less well-known and profitable developments.

Are there any reasons to expect a growth slowdown? More likely not. The company is at the forefront of innovative technologies that are changing our world for the better.

3. eBay – the world’s number 1 online auction. The history of eBay is the story of 20 years of success. The company was proceeding by touch through a completely unknown area, opening new horizons and setting its own rules.

Its founders were among the first ones in the world to understand that in the Internet era it’s not necessary to produce or sell anything. One can simply create a platform (in fact, it’s a shop window) where manufacturers and stores will display their products and meet their buyers. And eBay receives a fee both from every lot placed, and from every sale completed. Thanks to this online auction, millions of people around the world have got the opportunity to sell piece goods.

The company is growing steadily. Its audience exceeds 160 million users. And the generated profit makes it possible to invest in third-party services.

The whole sector of the Internet and innovation is the most promising investment option.

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