Wall Street is known for rewarding revenue growth among tech stocks. Companies such as Twitter (TWTR), which is not making a profit, have seen high valuations from investors in the hopes of greater monetization of its massive user base sometime in the future. Twitter is, however, doing something right, which is increasing its profit margin over time. The companies on our list have seen a significant rise in its profit margin during the past year, yet this doesn’t always equate to superior stock-price performances.
VeriFone Systems Inc. (NYSE: PAY) – $35.86
IT Services & Consulting
VeriFone Systems, Inc. (VeriFone), formerly VeriFone Holdings, Inc. is a holding company of VeriFone, Inc. The Company is engaged in the secure electronic payment solutions. Its system solutions consist of point of sale (POS) electronic payment devices that run its and third-party operating systems, security and encryption software, and certified payment software, as well as other third-party value-added applications. Its system solutions process a range of payment types. It provides solutions, and services for the financial services, retail, petroleum, restaurant, hospitality, taxi, transportation, and healthcare markets.
- Market Cap: $4,103,103,514
- Revenues (LTM): $1,942,761,000
- Stock Price Change (1 year): -3.0%
- Profit Margin Absolute Change (1 year): 18.3%
Twitter Inc. (NYSE: TWTR) – $35.17
Internet Services
Twitter, Inc. (Twitter) is a global platform for public self-expression and conversation in real time. The Company offers products and services for users, advertisers, developers and platform and data partners. Products and services for users enables a way for people to create, distribute and discover content, which enables a user on Twitter to create a tweet and a user to follow other users. Products and services for advertisers consist of promoted products, which enable its advertisers to promote their brands, products and services, and extend the conversation around their advertising message. Products for platform partners and developers provide a set of tools, public application program interface (APIs) and embeddable widgets that developers use to contribute their content to its platform, syndicate and distribute that content across their properties. Products for data partners offer subscription access to its public data feed.
- Market Cap: $23,159,361,579
- Revenues (LTM): $1,588,449,000
- Stock Price Change (1 year): -10.5%
- Profit Margin Absolute Change (1 year): 55.4%
eBay Inc. (NASDAQ: EBAY) – $61.61
Internet Services
eBay Inc.(eBay) is a global technology company. It has created an open source platform that provides software developers and merchants access to its applications programming interfaces (APIs), to develop software and solutions for commerce. The Company enables commerce through three segments: Marketplaces, Payments and Enterprise. The Company’s Marketplaces segment includes its ebay.com platform and its localized counterparts and its other online platforms, such as its online classifieds sites and StubHub. The Company’s Payments segment consists of its PayPal business. Its Enterprise segment includes its Magento business and provides commerce technologies, omnichannel operations and marketing solutions for merchants of all sizes that operate in general merchandise categories.
- Market Cap: $75,233,907,386
- Revenues (LTM): $18,088,000,000
- Stock Price Change (1 year): +25.4%
- Profit Margin Absolute Change (1 year): 17.5%
Tyco International PLC. (NYSE:TYC) – $39.75
Communications & Networking
Tyco International PLC (Tyco), formerly Tyco International Ltd., is engaged in providing security products and services, fire detection and suppression products and services, as well as life safety products. The Company operates through three segments. The North America Installation & Services and Rest of World Installation & Services segments design, sell, install, service and monitor electronic security systems and fire detection and suppression systems. The Global Products segment designs, manufactures and sells fire protection, security and life safety products.
- Market Cap: $16,769,717,863
- Revenues (LTM): $10,275,000,000
- Stock Price Change (1 year): -13.4%
- Profit Margin Absolute Change (1 year): 8.9%
Texas Instruments Inc. (NASDAQ: TXN) – $54.83
Semiconductors
Texas Instruments Incorporated designs, makes and sells semiconductors to electronics designers and manufacturers across the world. The Company operates through two segments: Analog and Embedded Processing. The Company’s Analog segment includes the following product lines: High Volume Analog & Logic, Power Management, High Performance Analog and Silicon Valley Analog. The Company’s Embedded Processing segment includes the following product lines: Processor, Microcontrollers and Connectivity.
- Market Cap: $57,043,123,961
- Revenues (LTM): $13,212,000,000
- Stock Price Change (1 year): +14.0%
- Profit Margin Absolute Change (1 year): 4.0%
