2 Tech Stocks Down 15% I Buy Immediately
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Tech stocks did not perform so well during the volatile market. the TSX is down about 2% year-to-date, but tech companies continue to fare even worse. Some of the biggest and brightest have lost up to 15% or more.
But if you’re a long-term Motley Fool investor, maybe that’s when you can look back and say, “I invested when…”
While not all tech stocks fall into this category, there are certainly strong, lucrative companies that I would still buy at these prices – same if they fall further. We’ll take a look.
Constellation Software (TSX:CSU) has proven time and time again that management knows exactly what it is doing. With a strong balance sheet, it is ready to attract small software companies in niche but necessary sectors and give them what they need to succeed.
And their success means Constellation revenue. That’s why it’s one of the tech stocks I would buy today. While stocks are down 15% year-to-date, these stocks are up another 189% in the past five years alone. Plus, it’s been around for decades. That means it’s weathered the recession and downturns as these other new tech stocks learn for the first time.
Constellation stock will come out the other side of this fort. That’s why it’s a solid buy today down 15%. As it continues to acquire companies in this volatile (and therefore cheap) market, this recovery will only be smoother a year from now.
Open text stock
Open text (TSX:OTEX)(NASDAQ:OTEX) is another of the tech stocks Motley Fool investors might consider. It has also been around for decades and has worked its way into the cybersecurity industry. It’s a growing business, and one that data provider, analyzer and protector Open Text has been an expert in for years.
That’s why companies ranging from Amazon for Alphabet have partnerships with Open Text stock to protect their cloud-based data. And that’s incredibly valuable data. So it’s clear that these partnerships will allow Open Text to thrive for years to come, even after this economic downturn.
So, with stocks down 15% in 2022, now is the time to consider this stock a long-term hold. It’s taken one hell of a fall, up just 8% in the past five years after the recent plunge. However, it has increased by 1,144% over the past two decades. Once again, we have a company that has weathered multiple downturns and lived to tell the tale.
Don’t let the market fool you. Not all tech stocks are doomed to poor performance. Certainly, in the short term, these companies may continue to fall. But, on the other hand, these are not new stocks that will stay low once the recession is over. Instead, they will rebound much faster to pre-crash levels given their earnings and partnerships.