5 Best Technology Stocks To Buy Now

4. Meta Platforms Inc (META)

The American international technological corporation Meta Platforms, Inc. (META) now doing business as Meta (META) and formerly known as Facebook, Inc. is situated in Menlo Park, California. The firm, among other things, is the owner of Facebook, Instagram, and WhatsApp.  

Meta Platforms now has a trailing PE ratio of 13 as the stock lost nearly half of its market value recently. Numerous people do not invest in Meta Inc stock because of the risks such as regulatory risk, decline in advertising rates, and traffic growth risks. While people are right to be skeptical about Meta Inc, it is a good technology stock to invest in long term as a lot of the negative risks are already priced in.

Here’s what Giverny Capital has to say in its Q1 2022 letter about Meta Inc:

The rub, however, is that despite the bad earnings news the economics of Meta’s social media businesses remain exceptionally good. In 2021, for every dollar of revenue generated Meta spent 63 cents on expenses and reported 37 cents of pretax profit. That was considered disappointing, even though very few businesses generate 37% profit margins. On top of that, fully one-third of expenses, or 21 cents on the dollar of revenue, is spent on research & development, which is investment in future growth. In Meta’s case, this amounts to about $25 billion a year invested in various new projects, the most important of which is the metaverse.