As the stock market crashed on Friday 11th of March, tech stocks also suffered, with the Dow Jones today reaching $32,946. Many of the largest tech giants, such as Apple and Google, were among the worst performers in the market.
Causes of this drop have to be found in the Ukraine-Russian conflict, inflation raising levels, and bearish feelings on the market. Investors have been leaving the technology sector since the beginning of 2022, and the Nasdaq is losing -18.95% YTD.
Despite the drop, analysts expect that tech stocks will rise again in a while, and buy-on-the-deep could now be a good strategy.
Below we present some of the best stocks to buy in the tech industry.
Okta Inc. (OKTA)
Mkt cap: $24.14B
Trading at: $154.06
Okta is a cloud-based platform that simplifies the lifecycle of identity management, enabling organizations to connect their users and automate their business processes securely. It offers an end-to-end approach to identity authentication and authorization. It supports on-premise deployments and cloud solutions using Amazon Web Services, Azure, Google Cloud Platform, IBM Bluemix, Oracle Cloud Infrastructure, and others. Okta can be purchased at a discount now that its stock has dropped 30% this year.
The company posted a loss of 7.04% on friday, 11 march, 2022 , and its stock is trading at just around $154.06 per share. Okta has been an innovator in the cloud technology market, and they were able to attract important investors such as Sequoia Capita. However, they missed key financial targets that led to this drastic drop in stock price. Now it’s a great time to purchase OKTA’s shares on the cheap, and wait until things get better for the tech market.
Paycom Software Inc. (PAYC)
Mkt cap: $18.26B
Trading at: $303.22
Paycom Software Inc. stock underperformed the market in the last Friday reported earnings. PAYC stock dropped 2.08%, reaching US$303.22, which scared many analysts and investors as this was the second consecutive day of losses for the company.
Paycom has been a huge success story since its inception in 1998. Its software helps businesses automate repetitive tasks and improve productivity by providing payroll services, time and attendance tracking, benefits administration, and more. In addition, Paycom offers automation tools to help businesses with payroll accounting expenses, human resources management processes, compliance reporting & analytics, including employee self-service portals and mobile applications.
Skillz Inc. (SKLZ)
Mkt cap: $958.73M
Trading at: $2.34
Esports is the fastest growing area of competitive gaming. It’s a professional sport that has taken off in the past decade with major tournaments and companies such as Riot, Blizzard, and Valve. With the number of audience in esports doubling each year, to reach 577.2 million viewers in 2024, there’s no question that this industry has a lot of potential. However, it’s also very competitive. To stand out from the crowd and gain a competitive edge, companies need to offer something different at every turn. This separates it from other companies in the industry and makes it memorable for its fans.
Skillz has growth potential in the esports industry despite its competitiveness as it offers some exciting attributes. The company encourages developers to create their games, which means a differentiator. In addition, It has games aimed at the elderly and obtains positive results concerning these games’ popularity. Also, Skillz is likely to be bought by Microsoft, Amazon or Meta for a pretty high capitalization price due to metaverse speculations.
Snowflake Inc (SNOW)
Mkt cap: $54.29B
Trading at: $180.42
There has been a lot of speculation and worry over the state of tech stocks recently, with many investors believing that they are undervalued. Snowflake, Inc. (SNOW) is one company that has faced some tough times in the last year. Over the course of the year, SNOW’s stock prices have dropped nearly 30%. This has led to a lot of speculation as to why this may be and whether or not this is a sign that the market underestimates Snowflake’s potential.
The SNOW’s stock price has been dropping recently, and there’s a good chance to continue to do so. However, this could be the perfect time to buy Snowflake shares cheaper and wait until they rise again.
The conflicts between Ukraine and Russia impacted the global economy in general. As a result, the technology sector suffered significant drops in its shares, affecting even giants such as Apple and Google.
Last Friday’s results left many investors worried about the future of tech stocks. Despite this drop, there is still hope that tech stocks will rise again soon. So this might be a great time to invest in these low-cost stocks.