Tech Selloff: 3 Bargains to Pick Up Now

Thanks to the current slump, you can buy many tech stocks at a discount price or valuation that’s usually quite hard to come by.

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Even though it didn’t start that way, the tech sector has become one of the most diverse sectors. There is diversity even among its subcategories like software and e-commerce. While it gives you a lot of options, it also reduces the probability and occurrences of sector-wide discounts/slumps. Still, there are slumps like the one happening now that allow you to buy a diverse range of tech assets at a discounted price.

An internet services company

Tucows (TSX:TC)(NASDAQ:TCX) is a U.S.-based, cross-listed internet company. It’s the second-largest domain registrar in the world (after GoDaddy). It has a diverse range of other businesses that it operates via six well-known (in their respective business space) brands. It’s a small-cap company with a decent international presence and a diverse business model.

The stock saw enormous traction between 2012 beginning and April 2019, when it peaked. It rose by over 3,700% in that period. Since then, it has been a bit cyclical. After a correction phase that included the 2020 crash, the stock rose but has been falling since Nov. 2021 with the rest of the sector. You can buy it at an almost 50% discount now and can at least double your money if it reaches back its peak.

A telecom company

The telecom industry has changed a lot since the advancement in electronics, and many telecom companies, like Sangoma Technologies (TSX:STC), have had to adapt. It left its legacy telecom and communication solutions for its B2B clients and is now focusing on the cloud and more time-relevant solutions involving IP phones and VoIP.

The stock has mostly gone up since 2016, and it grew over 1,600% between mid-2016 and the stock’s 2021 peak. Even if we disregard the explosive post-pandemic growth, the stock grew about 135% in the preceding two years.

And now that it’s trading at a massive 69% discount to its peak and even a 43% discount from its pre-pandemic peak, it’s a fantastic bargain with robust recovery and long-term growth potential.

A crypto-based company

Few industries/market segments within the tech sector are doing worse than others, and crypto is one of them. You get to buy a promising company like Voyager Technologies (TSX:VOYG) at a hefty 80%-plus discount. The company listed on the TSX was at a relatively unfortunate time when the sector as a whole was falling, and the crypto slump was getting more brutal every day.

The Voyager app is a crypto broker that hasn’t penetrated the market at a scale comparable to giants yet. However, it’s rapidly growing. It already allows its users to trade over 100 cryptocurrencies and offers a lot of valuable tools and financial incentives to new users (to grow its user base).

Even if the crypto market as a whole starts recovering, Voyager might lag, but the scale of the recovery-fueled growth is likely to be remarkable.

Foolish takeaway

The tech sector bear market is now getting an additional downward push from the American markets, where the NASDAQ, the tech-heavy segment of the market, started going down at a mighty pace. So, it may take some time for your tech companies to recover.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Adam Othman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends TUCOWS INC. The Motley Fool recommends Tucows.

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