The technology sector is one of the fastest growing sectors these days. According to FactSet, the sector saw an average revenue growth rate of 4.9% in the fourth quarter of fiscal 2013, second only to the health care sector. The Internet software and services sub-sector recorded the fastest growth at 20%. Year-to-date, the tech sector’s performance, as represented by the iShares US Technology ETF (NYSEMKT: IYW ) , has comfortably beaten the SPDR S&P 500 ETF.
Adam Parker, head of Morgan Stanley’s U.S. equity team, recently upgraded the tech sector from market weight (20%) to overweight (22%). He singled out big data and analytics as the tech sub-sector where the biggest growth will be found.
One of the biggest growers in this space has been Splunk (NASDAQ: SPLK ) , which provides software that enables companies to track, comb, and analyze data in real time. This software has wide applications, including the ability to track security-related activities in real time. Splunk operates alongside another newcomer, Tableau Software (NYSE: DATA ) , as well as older heavyweights like International Business Machines, EMC (NYSE: EMC ) , and Google, which runs BigQuery, a cloud-based data analytics tool.