By 2022, many entrepreneurs are leaving, and it's not easy to understand why. Inflation is the highest in 40 years, the Fed raised interest rates in response, Russia and Ukraine are at war, COVID-19 continues to disrupt the supply chain and oil prices increased. The S&P 500 has flirted with bearish stocks and the Cboe Volatility Index (better known as Wall Street's VIX) is up 82% year-to-date, indicating bearish sentiment.
Even high-tech companies, which have proven to be very safe over the past decade, are feeling the effects. Many investors have lost interest in the market as a whole as investors fight over the value of the commodity and effective tools to protect the turbulent market. Some of the biggest companies in the world are now operating at low prices. This means there will be business.
With that in mind, here are two top tech stocks investors should consider today.
2 best tech stocks to buy when the Market Sell-Off
1. Alphabet
Alphabet (GOOGL -1.34%) (GOOG -1.29%), a leading search engine operator, has seen its share price fall by almost 25% since the beginning of the year. The company reported the most inline first quarter of 2022 with an overall revenue increase of 23% per year to $ 68 billion and earnings per share of 6% and a return to $ 24.62. The strong sales growth was due to a strong departure from the main advertising company, which rose by 20% to $ 61.5 billion. Google Cloud also continued to grow, by 44% to $ 5.8 billion. For the full year, analysts predict that total revenue will grow 16% annually to $ 299.1 billion and earnings per share will fall slightly to $ 111.51. I was very impressed with Alphabet's ability to maintain strong growth at the forefront despite the size of its business. And with a cash position of $ 20.9 billion and a free cash flow of $ 69.0 billion over the last 12 months, the company is well equipped to buy stocks and invest in further growth.
As you can see, the recovery in Alphabet's share price has nothing to do with its finances. The stock is now trading at almost 20 times profit, a high discount from the five-year average price-to-earnings range 32. This is a clear purchasing signal for this technology.
2. Microsoft
Like the Alphabet, shares of technology giant Microsoft (MSFT -0.23%) have fallen by almost 25% so far. CEO Satya Nadella is one of the strongest companies in the world, having lost sales and estimated sales in the last 12 quarters. Over the past four years, annual sales have increased 18% to $ 49.4 billion and non-GAAP (depreciated) diluted earnings per share have increased 14% to $ 2.22. The software giant's company fired all the bottles, but its Intelligent Cloud segment bore the crown for the strongest growth, which rose 26% to $ 19.1 billion.
This year, Wall Street claims total sales and earnings of $ 199.2 billion and $ 9.32 per share, which means 19% and 16% growth each year. Again, the company's ability to sustain impressive growth on a large scale says a lot about its management and core business. And Microsoft's current rating is just the icing on the cake. Today, the company has a multiple price to profit of 26, which is well below the five-year average of 35, which is a good sign for investors to buy shares today.
Reviewed by Techinterst
on
May 22, 2022
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