Forget Tesla! 2 Tech Stocks I’d Rather Buy Now

I’d look to buy Shopify (TSX:SHOP) stock and another top tech play over Tesla (NASDAQ:TSLA) after its quarterly fumble.

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Tesla (NASDAQ:TSLA) really dropped the ball after its latest round of quarterly results. Indeed, the magnificence of Elon Musk’s legendary electric vehicle (EV) firm has come into question, with the stock now miles below its all-time highs. As shares of TSLA continue driving lower, while the big analyst downgrades come flowing in, I think now is not a good time to try to catch the falling knife, as it feels the pain to be had in an auto market that can only be described as unforgiving!

At this juncture, I think it’s time to look beyond Tesla stock if you’re looking for decent results over the next two to three years. Though Tesla could pull the brakes on its plunge, my guess would be it has much lower to go, given the valuation still does not look cheap. For now, I’d take a raincheck on shares of Tesla and look to enter one of the timelier, more intriguing plays in the tech world.

In this piece, we’ll take a peek at two companies that I’d bet will outpace Tesla over the medium to long term. And though I think Elon Musk’s EV firm will eventually land on its feet, it could take more than a year before the worst auto woes head into the rear-view mirror.

Uber stock: Riding high of late

Ride-hailing firm Uber (NYSE:UBER) has really been crushing it of late after more than doubling (115% returns) in the past year! Indeed, at nearly $66 per share, Uber is flirting with new highs. And through 2024, I believe the transportation kingpin can make higher highs, as it continues delivering on the efficiencies front. As Uber looks to continue transitioning to electric, I view Uber as a nice indirect way to benefit from the long-term rise of EVs minus the cyclicality of the auto industry.

Indeed, the autos are not going to be everybody’s cup of tea, especially when the industry heads south. As Uber electrifies, I think it stands to pad its margins and add even more value for long-term shareholders. Uber has been an electrifying performer in 2023, and it’s not quite done yet! Between Uber and Tesla, I’d have to go with the former every day of the week.

Shopify stock: Growth still intact!

Shopify (TSX:SHOP) is another tech darling I’d prefer to buy over Tesla right here. Like Uber, momentum is on the side of SHOP stock, and it could continue for many quarters to come as investors gain a better appreciation for the firm’s continued growth prospects, even amid macro bumps in the road.

So, as Tesla stalls, expect Shopify to keep moving at full speed as it responsibly invests in and helps increase the value of its ecosystem. With so much addressable market to go after, Shopify remains a true hyper-growth stock that investors can justify paying a pretty penny for in this new year!

As Shopify stock goes on the mend, while Tesla stock drags, it may make sense to show more love to the former.

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 Joey Frenette has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Shopify. The Motley Fool recommends Tesla and Uber Technologies. The Motley Fool has a disclosure policy.

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