What’s the best way to invest in tech stocks right now? This strategy is working well for one fund manager

While investors with short-term aspirations will find it difficult to trade in today’s market, those with long-term horizons may find today to be the best time to invest. At the very least, valuations have come in a lot; perhaps too much in some cases. As a result, the latest decline in today’s indices may represent a great buying opportunity for patient, long-term investors. With the final quarter of the year just around the corner, the best stocks to buy now aren’t what they were at the beginning of 2022.

In each case, inflation and the looming threat of a recession have tempered forward-looking guidance. The Nasdaq, in particular, has been hit hard because of the tech industry’s growth-oriented dependence on borrowing capital. As the cost of borrowing increases, unprofitable companies will have a harder time making money. In October 2012, Corning’s board of directors declared a 20% increase in the company’s quarterly common stock dividend.

The second quarter was a mixed bag, with zero net broadband customer additions. We think investors should focus instead on the company’s ability to generate strong cash flow and maintain a solid balance sheet despite lingering headwinds. Looking from good buying opportunities is a crucial part of being a successful investor. While there are things that you cannot control, making well-educated investments minimizes potential pitfalls. So, when looking for the trade with xtb and earn cashback on your trades, there are some key factors to analyze. From their price target, current trading volume and RSI, look for indicators of good value.

  • Buying slices of shares in different companies can enable portfolio diversification, and potentially lower your portfolio risk exposure to one single stock.
  • With Apple’s stock price hovering between $205 and $210 per share recently, its shares aren’t exactly a classic value investing play—i.e., an underpriced stock with upside potential.
  • Alibaba got its start as an online wholesaler linking manufacturers, distributors and importers and exporters.
  • Conversely, some companies with disruptive technology have scaled to Enterprise status in a fraction of the time and with far less capital.
  • In 2023, however, the same analysts expect revenue growth to drop to somewhere in the neighborhood of 5.6%.
  • Over the last years, there are only around 30k net new, employer businesses added per year.

Some stocks check more boxes than others, and today we’ll be looking at a list of five such companies. In its current state, Goldman Sachs is already one of the best stocks to buy now. The bank provides investors a strong defensive position in an inflationary environment at a reasonable valuation. It should be noted, however, that the stock’s current valuation seems to be underestimating the bank’s future revenue growth potential.

#7: Meta Platforms

Many of these companies forego dividends to reinvest in their future growth. The process of buying shares of Samsung is notoriously difficult for investors in the U.S. The company trades on the Korea Exchange , and lists Global Depositary Receipts in Europe, but does not have a U.S.-listed American Depositary Receipt . That mean you need to buy Samsung via a broker in South Korea or invest directly. The latter route requires an investor registration certificate from South Korea’s Financial Supervisory Service and a trading account with a Korean securities firm. Perhaps best known as the parent company of Google, Alphabet was created as part of a 2015 restructuring.

While Alphabet may not be worried about a recession, it appears its investors are. The tech-heavy Nasdaq has sold off about 38% year-to-date because higher borrowing costs will indiscriminately detract from the future earnings of unprofitable companies. Unfortunately, Alphabet could escape the selling, despite having as close to a perfect balance sheet as possible.

best tech companies to invest in

Finding the best tech stocks to buy now is a little more complicated than it was a year ago. Due to their strong financial performance, financial institutions have continued to be optimistic. The highest was $250, a price target three different institutions had, which represents an upside of over 63.3%. SaaS—which stands for Software as a Service—is a software licensing and delivery backtested performance thinkorswim alert on range chart model in which software is licensed on a subscription basis and is centrally hosted. It is sometimes referred to as “on-demand software,” and you probably use it every day if you work in an office environment. The companies that make up this theme—Atlassian, Oracle, Salesforce, and Shopify, are helping to power thousands of enterprise, mid-sized, and small businesses worldwide.

Taiwan Semiconductor Manufacturing Company (TSM)

The company recently reported a quarterly profit of $1.14 bn, 91% higher than last year and is probably one of the best new tech companies to invest in. Ok, some will say the best thing for blockchain enthusiasts is just to buy Bitcoin. But there are some tech large companies that are heavy investors in blockchain technology. These are just a couple of great tech companies to watch in this field. Want personalized investment recommendations on the best tech stocks that fit your portfolio?

  • Unless someone carved out this article for you on a clay tablet, chances are you’re reading this on a computer or a smartphone.
  • They’re both doing just fine now — Facebook reported 56% revenue growth for the second quarter, and Alphabet saw sales jump 62%.
  • So this year’s underperforming stock could well become a darling again next year.
  • Projects well underway, including Facebook’s Oculus and Snap’s Spectacles.
  • 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.

Fidelity does not guarantee accuracy of results or suitability of information provided. This information is intended to be educational and is not tailored to the investment needs of any specific investor. CLA exists to create opportunities through wealth advisory, outsourcing, audit, tax, and consulting services. Indy-based nonprofit impacting lives, employers & communities by providing coding + cybersecurity bootcamp courses. In addition to facilitating the rollout of the 5G cycle, Qualcomm is expected to branch out into several edge technologies, like automobiles and IoT connectivity.

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Of course this is only possible with the technological advancements of recent decades. Our lives have been transformed by technology to such an extent that it’s safe to say we live online. This website is using a security service to protect itself from online attacks. There are several actions that could trigger this block including submitting a certain word or phrase, a SQL command or malformed data.

They’re both doing just fine now — Facebook reported 56% revenue growth for the second quarter, and Alphabet saw sales jump 62%. Regulators can change the landscape for emerging technologies rapidly when things go wrong. Data breaches, revelations about data collection and other headlines spur regulators to pass new laws and regulations that can impede future tech sector growth.

Inflation: A Rollback Of Globalization and Shortage Of Workers

Qualcomm has had a rough year, but that doesn’t mean it is not one of the best stocks to buy now. The latest drop in price is actually an opportunity to buy a great company at a good valuation. Patient investors who are able to stomach short-term volatility may be glad they bought shares in this downturn.

The tech bull market ran from 2009, when the consumer price index actually declined, through 2020 when inflation averaged only 1.7% per year,” she says. The technology sector can attract you with its stability and growth potential. The company focuses on supplementing its traditional mainstream servers and PCs with hardware and software products for hybrid-cloud environments. The Texas-based company employs around 158,000 people and sells globally.

Over the last three years Boeing has dealt with severe quality control concerns and a non-existent travel industry, and the stock’s price illustrates the struggles. Despite a rebounding travel sector, Boeing still trades with a price-to-sales ratio of 1.66x, which is below the aerospace industry’s median. Perhaps even more telling, most of Boeing’s peers have rebounded from the depths of the pandemic much quicker.

Startup Tech Companies

Investing in technology is enticing for many people because the sector has experienced exponential growth in recent years. But as we keep innovating, one-time leaders can quickly fall behind or convert euro to hong kong dollar even go out of business. With an even-eyed approach and an understanding of risk and return, you can make decisions based on research and your convictions as both a consumer and an investor.


The threat of slowing growth is a very real possibility, especially with inflation running high and a recession looking more and more likely, but Apple is built differently. The company has more than enough cash on its balance sheet to thrive in a high inflationary environment. Apple is increasing its optionality and revenue streams almost exponentially. Once known solely for its desktop computers, Apple offers best-in-class services and products in a variety of spaces. Today, Apple seems to be aware of its maturing business and is more than capable of doing what it takes to stay relevant. “Buy now, pay later” is just one of the many levers Apple will pull in the coming years to make it one of the best stocks to buy now.