Fusion-IO, Inc. (FIO), InvenSense Inc (INVN) & Millennial Media, Inc. (MM): Three Tech Stocks to Buy on the Taper Tantrum

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Millennial Media, Inc. (NYSE:MM) offers interesting value as the company is growing at over 50% yet only trades at an incredible multiple of just over 2 times revenue. Mobile advertising is a fast growing sector with big competition from third party networks in Google and Apple Inc. (NASDAQ:AAPL) and companies with their own networks in Facebook Inc (NASDAQ:FB) and Twitter. Regardless, mobile advertising is exploding as consumers continue to migrate to smartphones and especially tablets. Advertisers face a very complex scenario as consumers use multiple operating systems on hundreds of devices, hence the need to work with a leading mobile advertising network.

Though earnings were basically breakeven in 2012, analysts expect a fast ramp up towards earnings of $0.42 in 2014. The stock has been on the move since the April bottom below $6, yet it previously traded at $14 before the market panicked due to the company only being able to maintain 50% revenue growth.

Bottom line

As the market over reacts to the signals by the Fed that it will eventually need to reduce the aggressive bond buying program, investors should look to shift into growth stocks. Investors need to remember that even with reduced bond buying, the Fed is far from increasing the Fed funds rate from historical lows. The stocks of Fusion-IO, Inc. (NYSE:FIO), InvenSense Inc (NYSE:INVN), and Millennial Media, Inc. (NYSE:MM) should be strong gainers as the economy eventually grows fast enough to support a reduction in Fed action. As that occurs, growth stocks will offer the only safety area in the markets as rate sensitive stocks and bonds in general get hit.

The article 3 Tech Stocks to Buy on the Taper Tantrum originally appeared on Fool.com.

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