Value investors looking to buy the dip need look no further than some of the biggest names in tech.
As the market was getting beaten down yesterday, one index in particular was taking the worst of it.
The Nasdaq Composite had fallen by as much as 2.5% during yesterday afternoon’s trading – more than twice the loss that the S&P 500 experienced and nine times more than the Dow’s dip.
The main reason for the huge discrepancy in losses between the indexes has to do with the tech sector.
The tech-heavy Nasdaq dropped precipitously due to hefty drops from some of the biggest names in the sector.
But out of the decline that we’re currently seeing there are bound to be some phenomenal profit opportunities.
Where’s the money?
Investors in some of the premier names in the tech sector were feeling the pain yesterday.
At their lowest points yesterday, Microsoft Corp. (MSFT) fell over 2.4%, Alphabet, Inc. (GOOGL) dropped nearly 3.5%, Amazon.com Inc (AMZN) lost as much as 3.3%, and Apple Inc. (AAPL) bottomed out at a 4.4% loss.
With the market near all-time highs, yesterday’s dip caused a selloff in growth stocks as investors moved into more defensive stocks like consumer staples, utilities, and real estate.
And unfortunately for those still holding the bag on tech stocks, I don’t believe we’ve seen the bottom of the downward movement.
But I always look at big drops as fantastic buying opportunities for the right stocks.
Eventually, new buyers – and those looking to double down on their positions – are going to get a chance to scoop up these stocks at a great discount.
And there are two in particular that I’ve got in my sights…
How do I get some?
Even after earnings reports indicated that Alphabet, Inc. (GOOGL) and Amazon.com Inc (AMZN) both had absolutely huge quarters, both are now trading lower than before their respective earnings report date.
But before you dive right back into buying tech stocks, I would recommend exercising caution. This is the time of year where a lot of money in the market either gets moved to the sidelines or into defensive stocks. As such, I don’t believe the selling pressure is over for tech just yet.
I love all the FAANG names, but I am looking for them to move lower first.
My two favorite targets right now are Alphabet, Inc. (GOOGL) and Apple Inc. (AAPL).
I would recommend picking up shares of AAPL at $119 or less, and buying GOOGL at $2140 or less.
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In the Spotlight:
Despite being behind one of the three major COVID-19 vaccines that have rolled out this year, we have not yet seen much movement from Pfizer Inc. (PFE) stock.
Many investors – including one Pfizer insider – feel that PFE is undervalued.
Reports indicate that the Pfizer COVID-19 vaccine has already raked in $3.5 billion in revenue for Pfizer in 2021.
And yet, the stock is only up just over 8%, despite the massive revenue surge.
Even Pfizer CEO Albert Bourla recently weighed in, saying “”We do think our stock is undervalued…”
While the vaccine has been a huge success story, PFE just has not attracted the amount of buyers you might expect. But if the revenue spike can continue into its next earnings report, we may soon start to see that change quickly.
Plus, with the unbelievable potential of new MRNA technology to eradicate some of the world’s deadliest diseases, we could just be scratching the surface of PFE’s value.
This is a stock I’ve got on my watchlist, and I’ll be sure to keep you posted on any major developments as they come.