Some of the most obvious opportunities in the world of investing can be among the most difficult decisions to make. Investors may question whether growth will remain robust. How can they discern whether a given company is “too good to be true” (a value trap), or if something will de-rail a ride that appears to have lasted far too long?
Researchers have noted that typically winners keep winning. Selling winners to double-down on underperforming stocks can be a losing strategy. Sometimes, it’s best to sit tight and invest in winners that have shown the potential to grow one’s wealth over time.
These three stocks are among the companies I view as the most obvious opportunities to buy, particularly on dips. Let’s dive in.
Apple (AAPL)
iPhone maker Apple (NASDAQ:AAPL) had a horrible 2023. However, the stock has roared back to near-all time highs, showing resilience in recent months with its artificial intelligence (AI) plans and projections. Although its competitors are leading the AI race, this does not mean Apple lacks AI potential.
The company is set to reveal its AI weapon on June 10 at the Worldwide Developers Conference, and investors are looking forward to it. The excitement around this announcement persists, and its evident in the share’s 16% increase in the past month.
Also, the company sees AI potential and is heavily focusing on it. In fact, Apple has spent over $1 billion on AI research and over $100 billion since 2019. According to Chief Financial Officer (CFO) Luca Maestri, Apple uses a hybrid investment model. It collaborates with suppliers and partners to introduce new AI services without solely bearing the infrastructure costs.
Unlike Microsoft and Google, which monetize AI through subscriptions, Apple plans to boost premium iPhone sales with AI features, expected in iOS 18. These features will encourage upgrades from older models and increase revenue.
Amazon (AMZN)
The second that comes on the list is Amazon (NASDAQ:AMZN). With an impressive 18.7% share increase and excellent quarterly results, AMZN stock is truly a great long-term buy. Revenue also rose 13%, and operating margins saw a 7.8% increase. According to data, the company saw improvement in its North American margins for seven years straight.
Further, the company is expanding more in its ad business and cloud services segments. Amazon sees continuous growth for this sector, and it will benefit the company in the long run together with its AI innovation.
In addition, its Amazon Web Services (AWS) segment collaborated with the Italian government and invested billions of euros for its data center expansion in Italy. This comes together with Amazon’s smart move in strengthening their European cloud services. The investment might involve expanding AWS’s existing Milan site or creating a new one.
Meta Platforms (META)
The remaining top in the tech stock list is Meta Platforms (NASDAQ:META). With its expansive growth and innovation, the company saw a 117% rise in its net incomes, making it a strong indicator for future growth. The decline, driven by planned capital expenditures on AI capabilities, presents a buying opportunity for long-term investors.
META stock rose 37.3% over the past quarter due to 25% year-over-year (YOY) growth in Q4 revenue and doubled operating margins at 41%. Despite Reality Labs’ $4.5 billion loss, Meta’s core business showed strong profitability with a 22% reduction in headcount. The company forecasted a 29% revenue growth for Q1 and saw increased advertiser satisfaction, higher core app engagement and improved AI and GenAI innovations.
In other news, Meta Platforms improved CrowdTangle for European Parliament elections, addressing EU concerns. Candidates received notifications on Facebook and Instagram to protect their accounts. Live displays enable researchers, journalists and civil society to monitor real-time elections. Given the upcoming election cycle, I think Meta could be a key beneficiary through the end of this year.
On the date of publication, Chris MacDonald did not hold (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.
