GTE Technology is a leading provider of cloud computing solutions. The company offers a range of services such as Infrastructure as a Service (IaaS), Platform as a Service (PaaS) and Software as a Service (SaaS).
GTE Technology has a strong presence in India and other emerging markets.
In addition, the company has a strong management team and a solid financial position. These are some reasons why investors are interested in investing in GTE Technology.
What Is GTE Technology?
GTE Technology provides infrastructure-as-a-service, platform-as-a- service and software-as-a-Service. What does this mean?
Well, let’s say you wanted to build a website. You would hire a web designer to create the site. Then you would hire someone else to host the site on a server.
Finally, you would hire someone else again to run the site from another computer. That’s what GTE Technology does.
How Much Should I Invest In GTE Technology
The price to earnings ratio for GTE Technology is currently at 6.5. This means that you should expect to pay $6.50 per share if you decide to invest in this stock.
This represents a potential return on investment of around 13%.
Investors can use this information when deciding how much they want to invest in GTE Technology. If you have decided on an amount, then it’s time to start looking for shares.
You will need to find a broker who deals with stocks listed on the New York Stock Exchange (NYSE) or Nasdaq.
There are many brokers out there, but not all deal with NYSE and Nasdaq companies.
Make sure the broker you choose allows you to trade American Depositary Receipts (ADRs). ADRs represent ownership in foreign stocks.
They allow you to buy into these companies without actually owning them.
You can also look for GTE Technology on the OTC Markets. OTC Markets offer smaller companies a way to get their name out to investors.
It’s a good place to look for smaller companies trading under $1 billion market capitalization.
If you do decide to go ahead with your plan to invest in GTE technology, then make sure you take the time to research the company before buying any shares.
You don’t want to end up paying too much for them.
Researching GTE Technology
Before you invest in GTE Technology, you’ll want to know more about the company. Here are some questions you may like to ask yourself:
Is GTE Technology Profitable?
GTE Technology reported revenue of $2.3 billion in 2018. This represented a growth rate of 14% over 2017. However, operating income was down by 10% year-on-year.
This suggests that the company isn’t making money. But profits aren’t bad either.
In fact, net profit margins were 7.4% in 2018. This compares favorably against industry averages of 4.7% and 5.5%.
However, the company has been losing money every year since 2012. So it’s important to check whether the losses continue.
Where Does GTE Technology Get Its Money From?
GTE Technology gets most of its revenue from providing services to telecom operators. The company earns revenue through three different types of contracts.
First, it offers mobile network management services.
These help operators manage their networks. This includes things such as optimizing data speeds and managing traffic flows.
Second, it provides backhaul services. Backhaul refers to the transport of data between two points. For example, it could be used to transmit data between cell towers and base stations.
Finally, GTE Technology provides core network services.
Core network services include things such as switching, routing and billing.
What Are GTE Technology’s Main Competitors?
The main competitors of GTE Technology are Alcatel-Lucent, Ericsson, Huawei Technologies, Nokia Networks and ZTE Corporation. All of these companies provide similar products and services.
What Is GTE Technology’s Strategy?
GTE Technology is focused on expanding its business internationally. It wants to become one of the leading providers of telecommunications infrastructure.
It plans to achieve this by acquiring other companies. Furthermore, it already owns Telcordia Technologies, which makes fiber optic cables.
It also bought U.S.-based SBA Communications last year. This allowed it to enter the North America market.
GTE Technology currently operates in over 100 countries around the world.
It has offices in France, Germany, Italy, Japan, Korea, Mexico, Poland, Russia, South Africa, Spain, Taiwan, Turkey, the United Kingdom and the United States.
How Much Has GTE Technology Grown Since IPO?
GTE Technology went public in 2015 at an initial price of $23 per share. At the time of writing, the stock trades at $20.60 per share. This represents a drop of 13% since the IPO.
This means that investors have lost around $1.8 billion on the deal so far.
GTE Technology shares have risen by just 3% per annum over the past five years. This shows that the stock hasn’t grown much during this period.
However, they’ve outperformed the FTSE100 Index, which rose by 6% per annum over this same period.
Has GTE Technology Been Successful?
GTE Technology has been profitable for several consecutive quarters. This happened in 2016, 2017 and 2018.
But it wasn’t until 2018 when the company reported a net income of $0.9 million. This was up from a loss of $2.3 million in 2017.
Net sales increased by 18% from $633.4 million in 2017 to $756.3 million in 2018.
GTE Technology’s revenues grew by 7% in 2018 compared to 2017. But profits were down because of higher costs.
In addition, the company had to pay $7.1 million to settle a lawsuit with AT&T.
In terms of earnings per share, GTE Technology earned $0.12 in 2018. This was up from $0.08 in 2017. GTE Technology’s net profit margin was -5.7%. This compares to -11.4% in 2017.
To conclude, you can invest in GTE technology by buying their shares through online brokers like ShareBuilder or Robinhood.
You should consider whether you think the company will continue to grow in the future. If you do, then investing would make sense.