Dwindling Nasdaq Is Still Encouraging Investors to Take Advantage of Weakened Prices

With higher rates, a tightening monetary policy, and soaring inflation, investors are somewhat reluctant to pursue tech stocks in the coming year.

The Nasdaq-Composite edged lower in the first week of trading, falling by 3.5% since the opening of the market on Monday (03/01).On average, the Dow Jones Industrial Average managed to climb by 0.29%. Investors saw the Nasdaq 100 futures dip by 0.3% in the first week of the new year. Overall, futures on American markets are experiencing a slump starting in 2022, as the index fell by 1.35%.

Even with the slight downturn of the market thus far, it hasn’t completely scared off all investors. Now, Wall Street analysts and experts are seeing how investors can still take advantage of popular tech stocks, allowing them to purchase stocks at lower prices while riding out the slump.

Current predictions indicate that some tech-heavy futures will perhaps bounce back in the coming months – with a few unexplored stocks that might turn out to be the big winners for 2022.

Unexplored Tech Stock to consider

BackLine

While other popular tech stocks are remaining on the cards, experts are seeing companies such as BackLine, and similar accounting services increase their revenues over the coming year.

BackLine saw revenue climb by 21% year-over-year in the third quarter in 2021. The company has experienced some downturn throughout the pandemic, and in the first quarter of 2021 – but has quickly regained traction.

A growing customer base has placed the company in a relatively comfortable position, with a positive chance for stocks to increase in value as the year continues. Indicators revealed that BackLine customers are still spending more than 8% on offered services and products. Making it an unexpected stock purchase that might see lucrative returns.

Teradyne

Teradyne was one of a few tech companies that saw their stocks soar while the Nasdaq edged lower in the first week of trading for 2022. The company that manufactures automatic test equipment peaked on Wednesday (05/01) with stocks climbing 0.16%.

Most manufacturers are struggling to keep up with increasing demand, as effects left by the pandemic in 2020 are still being felt almost two years later. Teradyne has remained somewhat resilient, with Samsung, Qualcomm, Intel, and IBM among the few of their high-profile partners.

Teradyne is now in a comfortable position, where investors are seeing stock prices starting as low as $166.38, climbing slowly. In the first week of January, investment banking giant Goldman Sachs named Teradyne as one of their favorite tech stocks for 2022.

After this announcement, smaller private investors are now eager to purchase Teradyne stocks, as the tech market has delivered mere returns over the last few days. Perhaps the coming year will make Teradyne one of the best tech stocks for newcomers and low-profile investors.

Nvidia

While chipmaker, Nvidia is on the watchlist for most investment bankers, big or small – stock prices have been moderately climbing, seeing a 1.51% increase on early Thursday morning (06/01), with a daily high of $282.11.

Nvidia is one of few multinational companies looking to embrace the introduction of the Metaverse while pushing new technological innovations alongside other major tech firms. The company has slowly been edging higher, regardless of current economic implementations and the Fed’s increasing interest rates in the first quarter of the year.

Overall, Nvidia has gained strong traction throughout most of 2021, tailing a positive start to the new year – as investors remained quite positive about returns on their investments.

Pressure is mounting on major corporations to deliver advanced products and services that will entice investors and consumers to better support future endeavors.

The Takeaway

While higher rates and inflation will make it difficult for many investors to keep current predictions, the slow kick-off for tech stocks has encouraged many to rather look towards lesser-known corporations for lucrative investments.

Outlook for the year to come in regards to tech stocks may have started on a challenging streak, but compared to 2021, we can expect some major players changing how investors view the market and keep a finger on the pulse of some upcoming tech names.