Global shares: Should you buy into Apple, Amazon or Netflix?

Investors who stuck with Aussie stocks and ignored global giants have missed out on some massive gains. But does the future of Apple, Amazon, Alphabet, Facebook and Netflix look bright?

Investor interest in overseas technology companies is surging but many of the super-successful shares of recent times may no longer be the best place to park your money.

In the past five years, Apple shares have surged 121 per cent, Facebook climbed 211 per cent, Alphabet (Google’s owner) is up 113 per cent, Amazon has added 517 per cent and Netflix rose 590 per cent.

However, some analysts see only Netflix as a shining light for future growth, with the others battling tougher competition, mature markets and other issues.

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Global asset manager WCM Investment Management recently sold out of Amazon, Apple and Facebook, and doesn’t own Alphabet.

It has been buying more Netflix stock despite its stellar gains — from $US6 to $US345 since 2009.

Facebook has been under pressure in the past couple of years.

WCM client portfolio manager Jon Tringale said Netflix already had 110 million subscribers and this could get to 200 million within a couple of years.

“They’re spending a fixed amount on content, so as they get additional subscribers that revenue flows straight down to the profitability line,” he said.

This could make annual profit growth of 50-60 per cent “quite achievable”.

WCM also likes the growth potential Asian companies Tencent and Taiwan Semiconductor Manufacturing Company.

Netflix has more share price growth ahead, according to analysts. Photo: Chris Ratcliffe/Bloomberg

Mr Tringale said Alphabet, Apple and other big names were still great businesses “but other tech companies are maybe earlier in their growth cycle”.

“Technology continues to proliferate in more and more parts of peoples’ lives and businesses. You can be certain that technological advancement is going to continue.”

Contango Asset Management managing director Marty Switzer said people could access global shares directly through stockbrokers or online trading platforms, via listed investment companies, managed funds and exchange-traded funds.

“Australians are traditionally underweight global equities,” he said.

Gemma Dale, nabtrade’s director of SMSF and investor behaviour, said this favouring of Aussie stocks over global shares had been a great strategy in 25 years of economic expansion.

“But many investors appreciate that there are other great companies in the world that they’d like to hold in their portfolios, and are diversifying overseas,” she said.

Ms Dale said nine out of 10 of nabtrade’s most popular overseas buys were technology stocks.

“While these companies are listed in the US, their products and services are in many cases a huge presence in our daily lives,” she said.

“There is a wealth of research available on these stocks that also helps make the decision to invest much easier.”

Ms Dale said nabtrade had seen heavy buying in Disney ahead of it launching the Disney Plus subscription service.

“They own the Marvel franchise … Our younger investors are clearly buying what they know.”

@keanemoney