In this article, we discuss 5 best affordable tech stocks to buy now. If you want to see more best affordable tech stocks to buy now, the risk/reward, and methodology of this list, go directly to 14 Best Affordable Tech Stocks to Buy Now.
5. Salesforce, Inc. (NYSE:CRM)
Number of Hedge Fund Holders: 117
Salesforce, Inc. (NYSE:CRM) is one of the leading cloud software companies that laid off around 10% of its workforce mostly in early 2023. In addition, Salesforce, Inc. (NYSE:CRM) is also reducing its office space to more tightly control spending given the challenging economic environment. Recently COO Brian Millham said in Bloomberg that the company was considering further job cuts. Given 117 hedge funds in our database owned shares of Salesforce, Inc. (NYSE:CRM) at the end of Q4, the stock ranks #5 on our list of 14 Best Affordable Tech Stocks to Buy Now.
4. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 135
Apple Inc. (NASDAQ:AAPL) is a tech giant that is most known for making the premium smartphone iPhone, which still accounts for the majority of the company’s revenue. In order to diversify, Apple Inc. (NASDAQ:AAPL) has over the years launched the iPad, iWatch, and also grown its services business substantially. To diversify further, Apple Inc. (NASDAQ:AAPL) recently demonstrated a mixed reality headset for its executives according to Bloomberg. The headset could potentially debut in public in June but is expected to be priced at potentially $3,000 which could limit adoption until the company finds a way to make the product more affordable.
3. Alphabet Inc. (NASDAQ:GOOG)
Number of Hedge Fund Holders: 152
Alphabet Inc. (NASDAQ:GOOG) is a search engine giant that has lately faced more competition given Microsoft has incorporated AI into Bing. Although the AI makes mistakes, Bing has gotten more search traffic as a result, and Alphabet Inc. (NASDAQ:GOOG) is planning on launching multiple AI products of its own this year. While it has had a powerful chatbot of its own for years, Alphabet Inc. (NASDAQ:GOOG) delayed the public release as its executives thought it posed a risk to reputation and to the search ad businesses. Given the potential disruption to the company’s most profitable business, Alphabet Inc. (NASDAQ:GOOG) trades for a forward P/E of 16.92 as of March 28, which could be cheap or expensive depending on how well the company adjusts to the new AI environment. If it doesn’t do well in AI, Alphabet Inc. (NASDAQ:GOOG) is one of the riskiest stocks on our list.
2. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Holders: 194
Meta Platforms, Inc. (NASDAQ:META) is one of the hedge funds in our database’s more widely held stocks as 194 hedge funds in our database held shares of the social media giant at the end of Q4.
Although it is the leader in the social media, Meta Platforms, Inc. (NASDAQ:META) could potentially gain even more market share in the future as its competitor, TikTok, is under Congressional scrutiny. While TikTok is still the leader in short video, Meta Platforms, Inc. (NASDAQ:META) has invested billions of dollars into AI to make its competing product, Reels, more compelling.
1. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 240
Amazon.com, Inc. (NASDAQ:AMZN) ranks #1 on our list of 14 Best Affordable Tech Stocks to Buy Now given 240 hedge funds in our database owned shares of the e-commerce and cloud computing leader at the end of Q4.
On March 20, Bloomberg reported that Amazon would lay off another 9,000 employees following the layoffs of 18,000 workers beginning last November. Several big tech companies have laid off a substantial percentage of their employees as the economy could potentially slow substantially in 2023. Although its financial results could face headwinds if the economy slows, Amazon.com, Inc. (NASDAQ:AMZN) has long term potential given its leading cloud computing business which could benefit from the increase in AI processing.
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