Bargain hunting is here. 3 extremely cheap tech stocks to scoop

Technology stocks have slumped hard in the past 12 months. The closely-watched Nasdaq 100 index has slumped by over 28% from its highest point in 2021 while Cathie Wood’s Ark Innovation Fund has fallen by more than 67%. Beneath the surface, many tech stocks have fallen by over 50% from their highs.

While the sell-off will likely continue for a while, the reality is that many high-quality companies have gotten extremely cheap. Here are some of the most oversold tech stocks to buy the dip in.

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Salesforce

Salesforce (NYSE: CRM) has been one of the worst-performing Dow Jones constituents. Its stock price has slumped by almost 50% from its all-time high, bringing its market cap to over $158 billion. 

The decline is mostly because investors expect that its growth will slow down after recording strong performance in the past few years. Also, with inflation rising, analysts believe that companies will slash their technology spending.

Salesforce’s revenue rose to $26.49 billion in 2021 from the previous $21.5 billion. Its profitability also rose to $1.4 billion. These results included the recent acquisition of Slack Technologies. Still, there is a likelihood that the CRM stock price will recover because of its strong market share in key industries like communication, CRM, and business intelligence.

Adobe 

Adobe (NASDAQ: ADBE) is a leading technology company that offers some of the most important technology products like PhotoShop, Lightroom, Acrobat, and Illustrator. It is also one of the most important players in the marketing industry.

The Adobe stock price has declined by more than 42% from its highest point in 2021. Like with Salesforce, investors believe that the firm’s strong growth during the pandemic will start to level off. 

While this is true, Adobe has a long runway to achieve growth and profitability. For example, analysts expect that the firm’s revenue will jump to $20.51 billion in 2023 up from $15.7 billion in 2021.

BigCommerce

BigCommerce (NASDAQ: BIGC) is a relatively small software company that provides services to retailers and other entrepreneurs. The firm competes with companies like Shopify, Wix, and Squarespace. It has a relatively small market share in the industry. And unlike Shopify that targets sellers of all sizes, BigCommerce focuses mostly on large companies.

BigCommerce has been in a strong growth in the past few years. Its sales have grown from $91.9 million in 2018 to over $239 million in 2021. But its losses have also widened, which explains why the stock has collapsed by over 74% from its all-time high. It has also declined as e-commerce sales start slowing down. BigCommerce stock will likely bounce back in the coming months.

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