Some investors wait for corrections and crashes before pouring their money into tech stocks to buy. While investors who wait this long can miss out on great opportunities, it’s important to know which investments to monitor if the market ends up losing value.
Tech stocks have been reliable long-term investments for many years, and most indices and funds are packed to the brim with companies in the tech sector. However, some tech stocks to buy are better than others.
If you see these stocks continue to fall, it may make sense to accumulate shares while they are attractively discounted.
Meta Platforms (META)
You might get a great deal with this stock without a broader market crash. Investors sold off their shares after the company’s latest earnings report. Meta Platforms (NASDAQ:META) had 27% year-over-year revenue growth and 117% year-over-year net income growth in Q1 2024.
The company expects to generate $36.5 billion to $39 billion in Q2 2024 revenue. This guidance indicates a 14% to 22% year-over-year growth rate from the company’s $32 billion in Q2 2023 revenue.
The stock now trades at a reasonable 25.5 P/E ratio and offers a 0.45% dividend yield. The stock is barely hanging on to its $1 trillion market cap. A further decline can lower the stock despite a good earnings report. Investors may have wanted more from the guidance, but rapid net income growth and good revenue growth suggest the META stock has more room to run.
Microsoft (MSFT)
Microsoft (NASDAQ:MSFT) is one of the best tech stocks to buy due to its diversification into numerous verticals. The tech giant delivered another good quarter, which featured 17% year-over-year revenue growth and 20% year-over-year net income growth. Both of those figures are slight decelerations compared to Q2 FY24 results.
Its Copilot chatbot has the potential to drive significant revenue growth in the quarters ahead as Microsoft doubles down on artificial intelligence. Microsoft Cloud was once again the big winner with a 23% year-over-year growth rate. This segment contributed to $35.1 billion of the company’s $61.9 billion in total revenue.
A downturn can make the corporation’s value more attractive for long-term investors. Microsoft seems positioned to gain market share and thrive in any economy. It has video games, social media, cloud computing, artificial intelligence, advertising, and other verticals all in one. The company’s effective leadership and vast capital also give it the flexibility to expand into additional industries.
Amazon (AMZN)
Amazon (NASDAQ:AMZN) shares similar characteristics to Microsoft. The company is diversified and the leader in e-commerce and cloud computing. Advertising, streaming, and grocery segments also contribute to its revenue growth.
Amazon closed out 2023 with 14% year-over-year sales growth in the fourth quarter. Revenue reached a record-breaking $170 billion with domestic and international sales both achieving double-digit growth rates.
The stock has gained 21% year-to-date and up 80% over the past year. Analysts are feeling optimistic about the stock and have rated it as a “strong buy.” The stock has a projected 18% upside from current levels.
Amazon’s new delivery program should expand its market share in the grocery industry. Prime members pay an additional $9.99 per month to get unlimited grocery delivery services, while EBT recipients would be charged only $4.99 per month.
The program should increase the frequency of orders and turn Amazon into the go-to choice for more consumers. This new offering resembles how Amazon gains market share in multiple industries. It’s an attractive long-term stock that will look more attractive on any dip.
On this date of publication, Marc Guberti held long positions in MSFT and AMZN. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.