10 Beaten-Down Tech Stocks to Buy for the Long Term

And looking forward, it seems very unlikely anything will stop TSLA stock. The company has forecast vehicle delivery growth of more than 50% in 2022 on top of its already impressive expansion so far and despite lingering supply-chain issues. If investors are asked to think of a publicly traded company down more than 50% this year, they would likely name a state-owned Russian oil company. But oddly enough, e-commerce platform Shopify (SHOP (opens in new tab), $560.80) is among the worst performers since Jan. 1, with a staggering 59% decline over less than three months’ time. It’s also important to recognize Microsoft also shares many of the same dominant balance-sheet characteristics that AAPL does. Last year, the software provider reported cash and investments worth $130 billion, on top of net operating cash flow of $77 billion.

Tech stocks started 2022 under a lot of pressure, which has continued to date. While some tech stocks have held up pretty well, many others have dropped, making now a great time to take advantage of the low prices. It’s been a turbulent year for stock markets – record levels across all major indexes despite an onslaught of economic worries and what feels like never-ending variants of Covid-19. Now it’s time to look ahead to 10 major technology trends and which companies show the most promise to win big in 2022.

Opinion: These are tech’s 10 megatrends for 2022 — and the stocks to buy

First, consumers and businesses will have less income to buy products and services, which has an effect of slowing corporate earnings. Second, technology companies borrow heavily to fund startup costs, patents, and innovation expenses, and the cost of servicing that debt increases when interest rates rise. In the past 12 months, gains have not been evenly distributed. While mega-tech stocks have dominated the index’s performance, many widely-followed technology names have seen their share prices decline. Meanwhile, the tech giant’s server chips power data centers worldwide, hosting cloud platforms like Microsoft’s Azure and Alphabet’s Google Cloud. Recent advances in artificial intelligence suggest the industry is only just getting started and expected to boost cloud growth and countless other markets that could increase demand for AMD’s chips.

Technology stocks have been among the hardest hit in 2022’s bear market. The tech-heavy Nasdaq is down 33% year to date, while the S&P 500 is down less than 20% and the Dow Jones Industrial Average is off by less than 10%. But just as the sector tends to lead the market lower, it also tends to lead the market higher. In other words, tech stocks may be among the first to rebound during the next bull market, making this a good time to start searching for the best tech stocks to buy. Investors who want to buy tech stocks can do so in a brokerage account or an individual retirement account (IRA)—and, in some cases, a 401(k).

The names featured here will likely be familiar to most investors and all have solid growth prospects over the long term. The COVID-19 pandemic has been a boost for Fiverr’s business, and even though revenue growth has begun to revert to pre-pandemic levels, there’s still a lot of long-term upside in Fiverr. The company is working on going “upstream,” getting into higher-value services, and doing business with enterprise clients, increasing spending per buyer over time. The company’s trailing-12-month revenue is still just $274 million, and grew 42% year over year in its most recent quarter, 2021 Q3, so there’s a lot of potential growth to be had yet. “Mongo is the best one” of the big-data firms, says Julie Biel, portfolio manager and senior research analyst at Kayne Anderson Rudnick.

In 2020, the global cybersecurity market was valued at more than $150 billion and is expected to exceed $350 billion by 2026. Such growth would mean a compound https://trading-market.org/ annual growth rate (CAGR) of about 14.5%. Dell Technologies is a well-known information technology (IT) name that operates mainly through two segments.

The 7 Best Tech Stocks to Buy for June 2022

The top 10 names make up about 43% of net assets of $640.4 million. In terms of sub-sectors, we see IT (90.18%), followed by industrials (9.47%). Despite delivering its best third-quarter results in history, DELL is still trading at a reasonable valuation relative to its peers. Ciena provides network hardware and software that facilitate the delivery of video, voice and data traffic over communications networks.

While risk certainly cuts both ways, buying fast-growing tech names is a very effective way of boosting returns in a low interest rate environment. True, as IT spending comes under pressure, the growth rate will fall. But there remain strong long-term drivers for the company’s technology, which is why CFLT is one of the best tech stocks around.

What Is ESG Investing?

Moskovitz has been aggressively buying ASAN stock in December, acquiring millions of ASAN shares and boosting his stake by almost 50% in the first half of the month alone. But like it or not, around 3.6 billion people use one of Meta’s platforms — Facebook, Instagram, Messenger and WhatsApp — monthly. That makes Meta, along with Alphabet’s Google, a powerful, profitable and growing company in the duopolistic digital advertising market.

Revenue rose 52% year over year in 2021 to $656 million, showing how much further it has to go yet. Cloudflare’s cloud-based networking solutions should be helpful for the growth of applications like 5G, serverless computing, and the internet of things (IoT). The fund’s portfolio includes large-caps international stocks , more than 70% of which are from developed markets.

The bulk of FITLX’s 273 holdings are large-cap stocks, and the balance are mid-cap names. More than half of the fund’s portfolio is made up of technology stocks , health care and financial best tech stock to buy 2022 services stocks. This comes after the broader equity market corrected amid fears that the Fed was set to take a hawkish stand on interest rates in a bid to tame inflation.

Analysts have given NOW a rating of 1.8, which means it is a strong buy. NOW is currently trading at $385, while analysts expect it to test $534 in the foreseeable future. Recently, the company reported Q2 subscription revenue of $1.66 billion, up 25% YoY. This coupled with positive technical indicators, makes NOW, a top tech stock to buy now.

Cognizant Technology (CTSH)

The new CEO has been a visionary that’s accelerated the company’s growth. It took Ballmer 10 years to double Microsoft’s profitability; it’s only taken Nadella six years. This is where Unity shines, using its software to build detailed digital environments for it. Supply chain issues hit the game publisher though, causing its performance to drop in 2021. The publisher also has successful franchises like The Sims, Battlefield, and Apex Legends that open up exposure to the growing PC gaming market as well.

However, they are up more than 10% over the past six months, perhaps signaling that the worst is behind the stock. Dock David Treece is a former licensed investment advisor and member of the FINRA Small Firm Advisory Board. His focus is on breaking down complex financial topics so readers can make informed decisions. He has been featured by CNBC, Fox Business, Bloomberg, and MarketWatch. The company formerly known as Facebook is now named Meta Platforms to emphasize its embrace of the so-called metaverse.

Roblox has taken a more real-world approach to its gaming platform that has made it a real leader in the space. This practical approach coupled with continued platform adoption should lead to continued gains as the popularization of the technology leads to more investors looking to get into the space. In August, the company announced the acquisition of DSP Group, a leading global provider of voice processing and wireless chipsets.

There are catalysts that can continue to boost growth for one of the Street’s best tech stocks. Freelance work is more flexible and can be more cost-effective, which are both attractive in today’s slowing economy. Upwork also has been getting traction with its enterprise business.

Whether they manufacture sleek mobile devices or develop the digital services you can’t live without, fast-growing technology stocks can set portfolios into hyperdrive. These headwinds included a Fed intent on aggressively raising interest rates to bring down stubbornly high inflation. There was also a near shutdown of the initial public offering (IPO) market, as well as a spate of awful layoffs.

• In fact, Shah Gilani sees Microsoft as a must-own tech stock right now.
• Pressure on the markets has been increased by the geopolitical issues that have come out of the Russia-Ukraine conflict.
• Although, over the past six months, shares have declined just 7%.
• His focus is on breaking down complex financial topics so readers can make informed decisions.

In fact, Shah Gilani sees Microsoft as a must-own tech stock right now. According to him, he’d buy Microsoft and hold it until “the metaverse takes over the real world.” As the metaverse moves into the mainstream and more companies invest in the technology, Unity will be at the center – pushing the stock even higher in 2022 and beyond. Its software platform is used to develop nearly half of all PC and console games. And about 70% of the top mobile games were developed using Unity – a market that brought in more than $76 billion by the end of 2020. Morningstar Direct tracks nearly 600 ESG-focused mutual funds and exchange-traded funds.

On the bottom line, STMicroelectronics enjoys an operating margin of 27.2%, better than nearly 86% of the industry. It also features a return on equity of 36.4%, better than 93% of the industry, reflecting its superior ability to convert equity financing into profits. The balance sheet undergirds all this, particularly an Altman Z-Score of 5, putting STM in the safe zone in terms of bankruptcy risk. The author owned shares of Apple Inc. when this article was published. He held no positions in the other securities discussed in the post at the original time of publication.