Are Consumer Tech Stocks Safe for Long-Term Investment?
Growth Now, But What About Later?
– Many tech firms still unprofitable
– High risk, high reward sector
– Winners compound over years, not months
Why Long-Term Can Work
– Tech adoption in India still growing fast
– Recurring revenue or platform models scale well
– First-mover firms build brand loyalty over time
Risks Over Time
– Trend shifts (e.g., e-com to D2C)
– Tech obsolescence and new competition
– Valuation compression in global downturns
What Makes a Stock Long-Term Safe
– Strong cash flows and ROCE
– Repeat customer usage (DAUs, MAUs)
– Scalable without endless capex
Investment Insights
– Mix cash-positive and high-growth tech stocks
– Track 3-year revenue & EBITDA CAGR
– Stay invested in businesses, not just trends