My 2 Highest-Conviction Tech Stocks for December
As we head into the end of the year, it seems like things might finally be turning around.
avatar
Mike Sakuraba graduated with double major of English and Economics. Part time writer, part time investor, full time dad. Mike loves writing about technology, sports, and investing.
2022-12-03 11:30

When Will the Tech Rebound Happen?
It’s something that growth investors have been waiting for all year. Despite the losses we have already suffered, all of our favorite stocks continue to fall lower. Sooner or later tech stocks have to rebound, right? We are seeing historically low price multiples for many of these stocks. Does that make them good buys? Yes, for long-term investors. In a high-interest-rate environment, future earnings are slashed, and potential earnings growth is capped. So even though these companies continue to grow and expand their product offerings, the stocks remain stagnant or fall lower.My 2 Highest-Conviction Tech Stocks for December
As we head into the end of the year, it seems like things might finally be turning around. Chairman Powell has said that we should see the interest rate hikes begin to slow as early as December. This is great news for growth investors and we could very well see a rally into the end of the year. If that happens, here are my two highest-conviction tech stocks for the rest of the year.

Amazon (NASDAQ: AMZN)
Is it just me or is the sentiment around Amazon as low as it has been in years? Some people have spoken about the death of eCommerce, but the recent Black Friday set records in terms of online shopping. Amazon recently released information about its newest entries into the chip market. Combined with its AWS platform, the company is looking to up the competition in the fields of drug discovery and artificial intelligence. This means AWS will be directly competing with companies like AMD (NASDAQ: AMD) and NVIDIA (NASDAQ: NVDA) to name a couple. It is also increasing its vertically integrated cloud services for data analytics. This will likely be bad news for companies like Snowflake (NYSE: SNOW) in the future. Like many tech companies, Amazon is also trimming the fat to save on costs. Recently, the company closed down its food delivery operations in India. At a price-to-sales ratio of just 1.91, take this time to load up on the discounted stock.

Alphabet (NASDAQ: GOOGL)
Another big-tech stock that had a notable split this year, Alphabet has also seen its stock beaten down. Of concern to most was the decline in YouTube ad revenues last quarter. Part of the reason is a rise in views on platforms like Tik Tok and Instagram. Anyone who has kids knows that YouTube is still the king for the youngest generation of tech users. I stand by Alphabet’s core product portfolio of Google Search, the Android operating system, and the Google Cloud platform. Alphabet is also a cash cow and is trading at just 17.7 times expected earnings for the next twelve months. Some have expressed concern that Alphabet always flops when it tries to innovate on its own. The fact is, the company can afford to have some failures, given how big its successes are. At its current price, Alphabet has incredible upside if you hold it for the next decade.


Disclaimer: I have no positions in any of the stocks mentioned. I wrote this article myself, and it expresses my own opinions. I have no business relationship with any company whose stock is mentioned in this article. All information should be independently verified and should not be relied upon for purposes of transacting securities or other investments. See terms for more info.

Rate this article

positive
negative
Published On
2022-12-03 11:30

avatar
About the Author
Mike Sakuraba graduated with double major of English and Economics. Part time writer, part time investor, full time dad. Mike loves writing about technology, sports, and investing.


buy-coffee
You've read 1 article in the last year
..thank you for supporting us and for visiting our site. Unlike many other sites, The Dog of Wall Street is available for everyone to read. Our focus is to provide great content for free. Do you like what we are doing? Buy us a cup coffee. It is the fuel that keeps us going..

Looking Ahead to Tesla's Earnings: What Can We Expect?
Is there any stock that has been more talked about than Tesla (NASDAQ: TSLA) as of late? It’s a company that is always in the spotlight but the stock is under some heavy scrutiny this year and deservedly so.
By Mike Sakuraba | 1 month ago

2 Stocks to Load Up On During This Correction
Another volatile week for markets and investors are starting to feel a little uncomfortable.
By Mike Sakuraba | 1 month ago

2 Earnings to Watch for Next Week
This article is merely meant to talk about two companies that I’ll have my eyes on for earnings.
By Mike Sakuraba | 1 month ago

2 Stocks That Could Explode in Q2
Here are two stocks that I think could explode in the second quarter.
By Mike Sakuraba | 1 month ago

2 Trillion Dollar Companies in the Making
One thing for certain about these two companies is that I see the potential in how they can grow.
By Mike Sakuraba | 1 month ago

Is Tesla Back? Has TSLA Stock Finally Bottomed?
Tesla Stock Analysis: Robo Taxis to the Rescue?
By Mike Sakuraba | 2 months ago

2 Stocks to Buy During an April Pullback
Here are 2 stocks I’d buy during an April pullback.
By Mike Sakuraba | 2 months ago

TSM Stock: Is This The True Winner of the AI Race?
TSM’s stock has gained nearly 40% this year which is about half of NVIDIA has returned.
By Mike Sakuraba | 2 months ago