Some investors wait for a correction or crash before pouring money into tech stocks and buying them. Investors who wait this long can miss out on big opportunities, but it’s important to know which investments to monitor if the market eventually loses value.
Tech stocks have long been a reliable long-term investment, and most indexes and funds are chock-full of companies from the tech sector. However, some tech stocks to buy are better than others.
If these stocks continue to fall, it may make sense to accumulate shares while they are still receiving attractive discounts.
Metaplatform (META)
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You could make a big trade in this stock without the entire market crashing. Investors sold their shares following the company’s latest financial report. meta platform (NASDAQ:meta) saw a 27% year-over-year increase in revenue and a 117% year-over-year increase in net income in the first quarter of 2024.
The company expects sales to be between $36.5 billion and $39 billion in the second quarter of 2024. This guidance points to the company’s second quarter 2023 sales of $32 billion, with year-over-year growth of 14% to 22%.
The stock currently trades at a reasonable P/E ratio of 25.5x, with a dividend yield of 0.45%. The company’s stock is barely hanging on to its $1 trillion market cap. Despite the strong results, further declines could drag down the stock price. While investors may have been hoping for more from the guidance, rapid net income growth and strong sales growth suggest META stock has more room to play.
Microsoft (MSFT)
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microsoft (NASDAQ:MSFT) is one of the best tech stocks to buy because it’s diversified across a number of sectors. The tech giant delivered another strong quarter, featuring a 17% year-over-year revenue increase and a 20% increase in net income. Both of these numbers represent a slight deceleration compared to Q2 FY24 results.
As Microsoft doubles down on artificial intelligence, its chatbot Copilot could drive significant revenue growth in the coming quarters. Microsoft Cloud was once again the big winner with 23% year over year growth. The division contributed $35.1 billion of the company’s total revenue of $61.9 billion.
An economic downturn can make a company’s value more attractive to long-term investors. Microsoft seems well positioned to gain market share and grow in any economy. Video games, social media, cloud computing, artificial intelligence, advertising, and other fields are all rolled into one. The company’s effective leadership and significant capital allow it the flexibility to expand into other industries.
Amazon (AMZN)
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Amazon (NASDAQ:AMZN) shares similar characteristics with Microsoft. The company has diversified businesses and is a leader in e-commerce and cloud computing. Advertising, streaming and the grocery sector also contributed to the revenue increase.
Amazon ended 2023 with 14% year-over-year sales growth in the fourth quarter. Sales reached his record $170 billion, and domestic and international sales both achieved his double-digit growth rates.
The stock is up 21% since the beginning of the year and 80% over the past year. Analysts are optimistic about the stock, rating it a “strong buy.” The stock is expected to rise 18% from current levels.
Amazon’s new delivery program should increase its market share in the grocery industry. Prime members pay an additional $9.99 per month for unlimited grocery delivery, while EBT recipients are only charged $4.99 per month.
The program should increase order frequency and make Amazon the go-to choice for more consumers. This new service is similar to how Amazon is gaining market share across multiple industries. It’s an attractive stock to own for the long term, and any dip will look attractive.
On the date of publication, Mark Guberti held long positions in MSFT and AMZN. The opinions expressed in this article are those of the author and are subject to InvestorPlace.com Publishing Guidelines.
