As the U.S. Federal Reserve raises interest rates and tightens monetary policy to try and fight inflation, high growth but richly valued tech stocks have fallen out of favor among investors. Three that look like especially good buys right now are DigitalOcean (NYSE: DOCN), Unity Software (NYSE: U), and Applied Materials (NASDAQ: AMAT). Let's find out a bit more about these three apparently unloved tech stocks.
Major stock market indices have pulled back substantially in 2022 as investors have been spooked by a variety of factors such as rising inflation, the Federal Reserve's interest rate hikes, supply chain issues, and geopolitical instability in Europe. The S&P 500 has shed 18% of its value so far this year, while the Nasdaq-100 Technology Sector index is down 32.5%. With that in mind, here are a few companies that are on track to benefit from fast-growing trends, and that could reward new investors handsomely over the next five years.
Shares of Unity Software (NYSE: U) are down 12.5% as of 1:35 p.m. ET today, upended by broad-market weakness and steep sell-offs from a pair of closely related peers. Roblox stock is 8.7% lower today in response to a downgrade from Atlantic Equities, while Snap -- the name behind the social media app Snapchat -- cautioned its shareholders that it wouldn't meet its initial second-quarter earnings estimates, sending its shares down more than 40%.