The past few months have been nervous ones in the tech stocks market. Not only have we seen some big falls already, I think many investors expect further declines. But I approach the markets with the mindset of a long-term investor. I therefore think the market movements have given me some attractive buying opportunities for my Stocks and Shares ISA.
Here are three shares I would consider buying for my ISA at their current prices.
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The parent company of Google — Alphabet (NASDAQ: GOOG) — touches billions of lives countless times a day. Its services are wired into many people’s daily routines.
Not only do I think that means it will not disappear any time soon, it makes me hopeful about future growth prospects for the company. Its technology and user understanding, along with the installed customer base, give it commercial advantages a competitor would find difficult to match. That gives Alphabet strong pricing power. Indeed last year, its earnings soared to a record high $76bn.
But over the past year, Alphabet shares have moved up just 1%. I do think there are risks here – when tech companies reach the size of Alphabet they often attract the attention of regulators. That can hurt profits. But the tech powerhouse is a moneymaking machine. I used to own its shares in my ISA and would consider buying them again at the current price.
Amazon is a leading tech share, so if sector stocks fall further it would not surprise me to see Amazon among them. But stepping back from the market noise to a long-term perspective, I think the industry leader’s advantages over competitors are set to keep growing.
It has a huge customer base, including over 200m members of its Prime service. It is also an expert both in logistics and data management. Those attributes should help it be solidly profitable in years to come, I reckon.
Growing local competition in a variety of markets could force Amazon into lower profit margins. But the business model is proven and I expect the company to thrive in the coming decade. I would consider adding Amazon to my Stocks and Shares ISA today.
I have bought Netflix for my own ISA and would consider adding more. Like Amazon, the shares have fallen in the past 12 months – in Netflix’s case by 60%.
But the business has some advantages — from its large existing user base to a unique library of content it has created. While growing competition could hurt both revenues and profits in coming years, I think the company has the ability to thrive as long as it can give viewers what they want. And at a price that seems like decent value in a worsening economic environment.
Loading up my Stocks and Shares ISA
A Stocks and Shares ISA is often about buying and holding shares as a way of trying to accumulate wealth over the long-term. That is why I am using what I think are attractive prices for some great tech stocks to build my own ISA.