2 Leading tech stocks to buy in 2022 and beyond

Technology stocks have gone from being the best performing sector of the last decade to one of the worst this year. heavy technology Nasdaq 100 It gained 4000% over the past 30 years but is down 26% in 2022. Other broad-based indices are not performing much better either.

However, despite the sector’s miserable performance, savvy investors see this as an opportunity to grab shares of good, ramshackle tech growth stocks that were not as affordable as they are today. The next couple of leading tech stocks to buy this year and own in the coming years.

Image source: Getty Images.

Pinterest

Social sharing platform Pinterest (pins 0.93%) It has fallen sharply over the past year because people have rediscovered activities outside the home during pandemic lockdowns. When people were forced to be cornered, they used Pinterest’s virtual cork board technology to pin ideas to beautify their homes or activities they could do as a family. Once free movement was allowed again, pinning ideas online became a core idea, and the number of monthly active users fell 9% to 433 million last quarter.

Lately, though, Pinterest has been plagued by concerns about the slump causing a drop in ads, as well apple Updated its privacy settings to allow users to opt out of tracking advertisers because most of its revenue comes from ads. However, these concerns may be exaggerated when it comes to Pinterest.

Explode, Explode, for example, got crushed the other day because its revenue growth slowed dramatically due to slowing ad sales, but Pinterest is actually an advertiser’s dream. Snap and other social media platforms are trying to put an ad-based model on their apps, but Pinterest users are usually looking for things to spend money on, so it fits perfectly with an ad model.

The recession will certainly weaken consumers’ ability to shop, but this is a relatively short-term concern at best. Global revenue per user still jumped 28% in the first quarter, which shows that Pinterest can still monetize its users. Having lost more than three-quarters of its value in the past year, Pinterest stock is at a level that makes it attractive to investors with a long-term mindset and the patience to see it grow into an online e-commerce powerhouse.

Amazon

Amazon (AMZN 10.36%) Pinterest’s stock suffered the same crash (the e-commerce giant “only” is down 37% in the past 12 months), although its growth seems guaranteed. The recent two-day Prime Day sales event generated $12 billion in global sales, a new record, and on a daily sales basis, it far exceeded that. JD.comSplendor 618 sales for three weeks. While JD raked in over $56 billion in sales, that comes in at just under $2 billion a day. Amazon made over $6 billion a day for this event.

However, that’s not the exciting part about Amazon, because its Amazon Web Services cloud services remain the fastest growing part of their operations and still the most profitable. Revenue in this segment jumped 37% last year, to $62 billion, and rose by a similar rate in the first quarter.

Amazon is expanding AWS capabilities for leading technologies such as video streaming, online gaming, and augmented and virtual reality by creating “local zones” that bring storage and database infrastructure closer to the customer. Doing so allows data transfer times in milliseconds, which increases efficiency.

Amazon recently completed a 20-for-1 stock split, bringing the stock down to $114 per share. Even though the stock is still up to 45 times earnings estimates for next year, Wall Street still expects the company to post earnings growing at a compound annual rate of 33% over the next five years, making Amazon a growing technology stock in every word. Meaning and one buy and hold for years to come.

John Mackie, CEO of Whole Foods Market, an Amazon company, is a member of The Motley Fool’s Board of Directors. Rich Dupree does not hold a position in any of the stocks mentioned. Motley Fool has positions at Amazon, Apple, JD.com, and Pinterest and recommends. Motley Fool recommends Nasdaq and recommends the following options: long March 2023 calls worth $120 on Apple and short March 2023 calls worth $130 on Apple. Motley Fool has a disclosure policy.

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