“Be fearful when others are greedy. And be greedy when others are fearful.” – Warren Buffett
American’s best tech stocks are now trading at bargain prices…
Thanks to a huge 20% selloff in the NASDAQ.
Go here for my #1 trade of 2022 – it’s NOT the FAANG stocks.
Many high-flying and unprofitable tech stocks were extremely overvalued in 2021.
Even after dropping over 50% – these stocks appear to be richly valued by typical measures. While I’m going to avoid these stocks…
The market drop means there are dozens of tech stock bargains right now.
Here’s what I’m looking for:
- Stock price down at least 30%
- Revenue growth exceeding 15%
- Profitable today or within 1-year
- Attractive valuation based on EPS – relative to the growth rate
Here are three examples.
PayPal Holdings (NASDAQ: PYPL) @ $107 Per Share
PayPal is a premier online payments platform. Shares are down 57% in the last year – including a 43% drop since January 1 alone!
By the end of this year – the company’s revenues will have doubled in 4 years to hit $29 billion.
PYPL stock trades at 23-times this year’s earnings. That’s a similar valuation to the S&P 500 index. Yet it’s annual growth of 15% – 20% is far better than the average large cap stock.
Zoom Video (NASDAQ: ZM) @ $106
Zoom was a pandemic stock market darling – soaring as high as $559 in late 2020. Yet today the stock is down 81% from that all-time high.
The stock was 100% overvalued when it traded over $500 per share. Yet today shares are trading at the same price as in March 2020 – before the pandemic took hold.
Meanwhile, the company’s video conferencing business is booming. Sales were $622 million in the year before the pandemic. And the sales have grown 559% to reach $4.1 billion last year.
That’s right – the business has grown by 6 times. Yet the stock price is now flat!
Plus – the business is still growing. ZM shares trade at 30 times earnings, an inexpensive multiple relative to the company’s growth.
Pinterest (NYSE: PINS) @ $24
Pinterest is a social media platform for sharing images. The stock has gotten slammed – falling 67% in the last year.
However, business is booming. Sales tripled to hit $2.5 billion last year. And the growth outlook is bright. Sales are expected to jump 21% this year – and another 26% next year.
PINS shares are cheap. The stock trades at just 23-times expected earnings.
Growth Stocks at Reasonable Valuations
These stocks were all flying high during the bull market of the last two years.
PayPal, Zoom and Pinterest have each seen their growth rates decline from peak levels. Most growth stocks experience this at some point. As the business grows – it’s impossible to sustain the same growth rate.
However, these are still great companies. And their growth rates in the next year far exceed the overall stock market and U.S. economy.
This is the ideal time to go hunting for bargains.
The biggest mistake is to simply buy stocks because the stock is down. A stock is NOT cheap simply because it’s trading below the recent highs.
It’s critical to understand the business performance, growth prospects, and valuation. Lots of folks forgot about these fundamentals of business during the 2020 – 2021 bull market.
Now it’s time to get back to basics.
I personally own shares of PayPal and Pinterest. And I’m looking to add shares of Zoom after the recent drop in the stock.
I’m also focusing on the next generation tech stock winners. And buying these stocks could be like jumping into Apple, Google, or Netflix 10+ years ago.
They’re called MACE stocks.
Access my urgent LIVE webinar to discover:
- What exactly are MACE stocks – and why you have not heard of them
- When these MACE stocks could become household names
- Details on 5 of these next generation tech stocks
- How these stocks could crush FANG stocks in the next 3 years
- Why I’m planning to bet $100,000 of my personal savings on these stocks
Simply go here for urgent details.
Yours in Wealth,
$100k Tech Stock Bet – NOT the FANG Stocks: I’m taking $100,000 of my savings – and I’m going “all in” on new next-generation tech stocks. They’re called the MACE stocks. And they stand to topple Facebook and the other tech giants. Go here for urgent trade details.