Most of the tech stocks that were amidst a selloff at the same time last year have rallied impressively in 2023. The two biggest tech companies are close to surpassing their peaks back in 2021, while others like Meta Platforms (NASDAQ:META) and Netflix (NASDAQ:NFLX) have more than doubled their value from their troughs. Nvidia (NASDAQ:NVDA) has nearly tripled its value since October. These tech giants are only some of the best tech stocks to buy now.
Of course, not all tech stocks were blessed with a rally. Companies that failed to cost-cut their way to profitability continue to trade at depressed levels, even with promising growth prospects. I believe taking advantage of the myopia and snapping up some of these shares will lead to excellent ROI in a multi-year timeframe.
Here are three of the best tech stocks to buy now:
Snap Inc (SNAP)
Snap Inc (NYSE:SNAP) currently offers a buy point that’s too compelling to ignore. It peaked near $83 back in 2021, and it is very unlikely that the company will fail to surpass this peak by 2030, considering the room for growth.
For starters, let’s talk about what went wrong here. The bearish sentiment behind SNAP stock is due to the company’s weak financials in the near term. Social media companies like Snapchat rely primarily on advertising revenue, which slumped considerably after the boom in 2021. However, it has returned to a more sustainable trajectory which Snapchat’s financials will also follow.
That’s not all. Snapchat is yet to fully maximize its ad potential. Facebook’s average revenue per user is $9.62 worldwide, while Snapchat’s is just $2.58. This is the primary metric the company needs to work on to reverse the sentiment, and it will not be too hard to do so if the ad market cooperates. At the same time, Snapchat’s daily active user base has been growing at a blistering speed and is at 383 million compared to 218 million in the pre-pandemic period.
My point is that its current financials shouldn’t bear too much weight right now. I’m confident the company can pull off strong growth by 2030 by adjusting its ARPU. The ad market’s bounce will also take some patience, but it will inevitably happen. Further, catalysts like a TikTok ban (a real possibility by 2030) will considerably boost Snapchat.
All things considered, SNAP is one of the best tech stocks to buy now, and a steal in my book.
Unity Software (U)
Unity Software (NYSE:U) specializes in video game software development. The stock has continued to languish near the $30 level, but I believe the bottom is in. There are several reasons to believe that the stock could rally much higher.
Unity has shown strong sales growth, with revenue increasing by 56% year-over-year in Q1 2023, and revenue is estimated to hit $2.6 billion by the end of 2024. This growth is likely to continue as Unity’s game development engine remains the most popular tool for game developers, even with the Unreal Engine making some ground regarding higher-end games.
Moreover, if Unity’s financials remain consistent, the stock could very well see a 10x price appreciation by 2030. The gaming industry will only keep growing in the long run, with Gen Z and Gen Alpha getting more and more sway over the market. Thus, U is among the best tech stocks to buy now as there’s little downside risk with substantial upside potential.
Luminar Technologies (LAZR)
Luminar Technologies (NASDAQ:LAZR) is a tech company that will benefit from the ongoing electric vehicle boom. EVs are the future, whether it may take 10 or 20 years, and EV companies are increasingly embracing LiDAR technology for self-driving cars.
Luminar specializes in the tech, considered superior to what EVs currently use today. Self-driving cars use other sensors to see, notably radars and cameras, but laser vision is hard to match. Radars are reliable but don’t offer the resolution needed to pick out arms and legs. Cameras deliver the detail but require machine-learning software to translate 2D images into 3D understanding. Thus, I am confident that LiDAR is going to gain significant traction by 2030.
In fact, we are already seeing the adoption of LiDAR by companies like Volvo (OTCMKTS:VLVLY) and Xpeng (NYSE:XPEV). This has translated into strong sales growth for Luminar, which aims to grow its revenue by triple digits every year for the next five years.
On the date of publication, Omor Ibne Ehsan did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
