5 Tech Stocks To Buy While They Are On Sale
These five tech stocks have the potential to generate good returns over the long run if you buy them right now.
- Etsy’s global marketplace for unique, antique, and creative goods is one significant reason to buy the stock.
- Alibaba’s business in China looks a lot like Amazon’s in the US in terms of growth and popularity.
- Factors like the firm's primary business segments, revenue, and profitability can lead the SOFI stock value to rise tremendously in the coming months, making it a good buy.
- The massive success of the QQ and the WeChat platforms has significantly boosted the price of Tencent stock.
- Snowflake, the most notoriously expensive tech stock, has some concrete and ambitious revenue goals targeted to achieve for the coming years.
As innovation fuels performance, tech stocks continue to be the most dynamic of all stock categories in the market. With new technological upgrades, several tech stocks have emerged with full strength over the past few months. Of course, the best time to plunge into the market is when the stocks are at discount prices. Therefore, we have compiled the best 5 tech stocks to buy while they are on sale.
Market corrections are always an essential part of the game, especially for long-term investors. They provide investors with the opportunities to get hands-on their desired stocks in world-class companies at discounted prices. So let us see why these five tech stocks are the best to buy now for securing a wealthy future.
5 Tech Stocks To Buy While They Are On Sale
1. Etsy (ETSY)
With millions of people searching online to buy face masks amid the pandemic, Etsy has seen overnight success.
Etsy is a thriving online e-commerce platform where creators of arts and crafts, unique vintage items, and other antique goods go to sell their products. It is a company that benefited greatly from the pandemic as people started turning online for shopping. In addition, the platform saw an overnight success as several people discovered it during the lockdown in 2020 for buying face masks.
But this tech-powered marketplace isn't just a coronavirus play. With its unique niche of the e-commerce universe, Etsy is positioned as one of the top 5 tech stocks to buy. Additionally, the firm’s recent acquisitions of Reverb and Depop have added a potential twist to its long-term business model. According to a survey, 88% of customers who constantly use Etsy’s online platform said it offers unique items found nowhere else.
Yet another significant reason to buy Etsy stock for future returns is because of its vital buyer metrics. The data shows that the platform is attracting and at the same time keeping its customers. The repeat buyers have grown almost 13% to 36.4 million, whereas habitual buyers have had a 22% growth, hitting a record of 7.9 million. Moreover, GMS per active buyer has also hit a record of 4123 in the quarter showing a 20% year-over-year improvement.
A crucial reason why Etsy is one of the top stocks that will rise in value is because of its powerful customization feature. It allows buyers to search for or create something extra special and make them feel valued as a customer. However, Etsy is still not resting on its laurels. There was the recent acquisition of the fashion reseller Depop for $1.6 billion. This has significantly bolstered their apparel category and added $1.2 billion in GMS over the previous 12 months. Additionally, there was a solid 83% year-over-year growth for the quarter too. The Depop brand has strengthened its hold on e-commerce, and Etsy has significantly shown a rise in its price.
Etsy’s growth has no signs of stopping anytime soon. Earlier this year, it extended its merger and acquisition run with a $217 million purchase of Elo7, the Etsy of Brazil. These acquisitions will significantly boost the growth of Etsy stock in the quarters to come.
2. Alibaba (BABA)
Alibaba stock continues to deliver solid earnings and sales growth, making it a good buy.
Alibaba is one of the largest Chinese companies listed on the US market. The stock was in a bearish rally and has seen a sharp downturn since November 2020. But even though the BABA stock gapped down on May 13 after missing the Q4 earnings expectations, the revenue growth accelerated for the fourth straight quarter, surging almost 77% to $28.6 billion.
Daniel Zhang, the CEO of Alibaba, said in a news release, “Our cloud computing business continues to expand market leadership and show strong growth, reflecting the massive potential of China's nascent cloud computing market as well as our years of investment in technology.”
Experts say the stock seems to be on sale now and is the best time to buy Alibaba. The firm’s e-commerce activities and cloud business have been growing at a rapid pace. If it continues to keep its momentum, BABA stock could end up surprising investors by the end of this year.
The stock gained much popularity recently after the Financial Times reported that Jack Ma and Joe Tsai, its co-founders, have announced shares with global banks. Although the news led to a huge sell-off in BABA stock, the firm brought in a clarification saying that “The fact that Jack and Joe borrowed from financial institutions using their Alibaba stock as collateral has been widely reported.”
Alibaba is listed on the best 5 tech stocks to buy while they are on sale because of its impressive track record of growth. The firm has a five-year annualized earnings growth rate of almost 29% and a sales growth rate of 46%. Also, in fiscal 2021, BABA stock generated 87% of its revenue and a significant portion of its profits from its core commerce unit. It includes Taobao and Tmall marketplaces, brick-and-mortar stores, and cross-border as well as international marketplaces.
With its consistent growth over the years, BABA stock might have the potential to generate good profits in the future. In addition, the firm’s cloud-computing business is showing strong growth similar to Amazon's booming web service business, an added advantage for BABA stock.
3. SoFi Technologies (SOFI)
SoFi technologies aim to be the first one-stop-shop app for all digital banking services.
SoFi or Social Finance technology is a prominent fintech company that offers various financial products through its platform. Lending, a technology platform, and financial services are the three core business segments of the company. It is an all-in-one place where consumers can borrow, save, spend, invest and even protect.
The firm is not just benefiting from the business-to-consumer success but the business-to-business as well, which is why SOFI stock is one of the top 5 stocks to buy while on sale. Its advanced Galileo provides fintech companies with application programming interfaces (APIs) for core digital banking functionalities. Initially, Galileo was merely a partner for SoFi’s consumer-facing products. But the technology was so advanced and effective that SoFi decided to buy it.
SOFI stock gained colossal popularity recently as it went public by merging with a special purpose acquisition company (SPAC). This gives retail investors a chance to invest in SPACs. There were two major provisions about the stock's trading pattern. On the one hand, if the stock traded above $12.50 in any 20 days, during a 30-day period, almost 33% of the stock subject to the lock-up would be released early. On the other hand, the second provision affirmed that if the stock traded above $15 in any 20 days during 30 days, an additional 50% of shares, subject to the lock-up, would be released early.
One significant reason for the rise of SoFi stock’s price is the growing number of its members, which is almost 10% year over year. Also, the firm’s lending and financial services product offerings had a growth of nearly 12% and 273%, respectively.
4. Tencent (TCEHY)
Thanks to the company's relentless focus on customer satisfaction, Tencent stock seems to be a good buy now.
Tencent, Asia’s biggest technology company, is one of the greatest discounted stocks as of now. The firm had an array of development and acquisitions earlier this year, which boosted TCEHY stock’s price. The creation of the QQ, an instant messaging platform specifically developed for the PC era, was one of the significant reasons for its growth.
After the creation of QQ, Tencent became the undisputed leader in instant messaging. It further expanded its horizons to provide online services ranging from news to online games. This boosted the popularity of QQ and helped in creating a loyal customer base. With plenty of space for growth, Tencent stock has the potential to generate massive returns in the future for investors.
The company didn't stop here. It further replicated QQ’s success with WeChat, one of the world's biggest super apps. This continuous development is the key reason why Tencent is one of the best tech stocks to buy while on sale. WeChat became a huge success. From a mere mobile messaging app, the platform was transformed into a place where users could do anything, from online shopping and ride-hailing to playing games and socializing.
Therefore, the name Tencent is now deeply woven into the lives of almost 1.2 billion Chinese consumers, boosting the TCEHY stock’s price, value, and adoption. With a loyal user base dependent on its service, the firm is well-positioned to continue its growth trajectory, making TCHEY an excellent stock to buy now, especially when the prices are at a discount.
Unlike any other large-cap technology company, Tencent has utilized its cash flow to expand its business by investing in other high-growth technology businesses. This is a strategic move that will eventually boost the rise of TCEHY stock price.
5. Snowflake (SNOW)
The Snowflake stock has a lot of room for future growth, making it the best option for long-term investors.
Snowflake is a cloud-computing data platform based in Bozeman. The price of SNOW stock has seen a drop since the beginning of the year. One reason for the price dip was the broader sell-off of tech stocks in the market, and in the end, investors turning their attention away from tech stocks, tumbling the share prices. Yet another reason was investors selling off their SNOW shares after the company reported its fiscal-year 2021 results in March.
But today, the price of SNOW stock is rising rapidly. The management believes that if it continues to keep this momentum, the stock will surpass $10 billion in product revenue by 2029. This is why it is best to buy SNOW now for securing good profits over the long run. As an initial step to achieve this goal, the firm is currently adding new customers to its database and is convincing them to continue to stick with the platform.
Snowflake has around 4,532 total customers currently and has a net revenue retention rate of 168%. The data shows that customers seem to enjoy the services and see the actual value of the firm. As a result, the price of SNOW stock will continue rising in the coming years as more customers spend their money with the company.
Moreover, it is still in its early stage of growth and has plenty of space for future opportunities, which is why Snowflake is one of the top 5 stocks to buy right now. Also, the recent pullback of the share price has created a good buying opportunity for savvy investors. Considering all the factors, we recommend buying SNOW stock right now to generate good returns over the long run.
Therefore, it seems like the tech stocks are not going to slow down anytime soon. It exposes the fact of how dependent the world is on today’s technology. If you are a long-term investor looking for huge stocks at discount prices, then these are the top 5 tech stocks to buy while they are on sale. Also, ensure that you have a sound investment strategy in hand to cut down your losses and gain more profits.
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