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Apple isn’t the only tech stock I’d buy today

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US tech stocks have suffered a huge pullback recently and I think some great buying opportunities are now emerging. Here’s a look at three tech stocks I’d buy for my own portfolio today.

I’d buy Apple stock today

One tech stock I’d snap up after the recent pullback is Apple (NASDAQ: AAPL). Back in late January, its share price was near $145. Today however, the stock can be bought for around $120.

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Apple stock

I’m bullish on Apple for a number of reasons. Firstly, it’s a world-class business. Not only does it have one of the most powerful global brands, but it also has a very high customer retention rate due to the ecosystem it’s built. A survey last year found that 84% of iPhone owners plan to purchase another Apple handset when they replace their current phone.

Secondly, Apple still has plenty of room for growth. The company has ambitions to be a big player in both healthcare and autonomous driving.

There are risks to consider, of course. Competition from rivals such as Samsung and regulatory action against big tech firms are two that come to mind.

Overall, however, the long-term risk/reward proposition here is attractive, in my view. I see the stock’s forward-looking price-to-earnings ratio (P/E) of 26 as quite reasonable.

Work-from-home stock

Another tech stock I like the look of after the recent correction is Okta (NASDAQ: OKTA). It’s a leading provider of identity management solutions. It has a distinguished list of clients that includes the likes of FedEx, WPP, and Okta’s share price was near $300 in February. Today, it’s near $225.

Okta is growing at a rapid rate right now, driven by the need for organisations to protect themselves from cyber criminals. Its recent Q4 results, for example, showed revenue growth of 40%. Clearly, the company has momentum at present.

However, this is a higher-risk stock. That’s because the company is only generating small profits right now. For the fiscal year just passed, Non-GAAP diluted net income per share was just $0.11. The company’s recently-announced acquisition of customer and employee identity platform provider Auth0 for $6.5bn also adds risk.

I think the stock has significant long-term growth potential however. In today’s digital/work-from-home world, businesses can’t afford to ignore identity management.

Enormous growth potential

Finally, I’d also buy shares in Fiverr International (NASDAQ: FIVERR). This is a fast-growing company that operates an online freelance employment platform. Its share price was up near $335 in mid-February. However, since then, it’s fallen to around $230.

The reason I’m bullish here is that I expect the freelance market to grow significantly over the next decade. Freelancing is a win-win for both workers and businesses. For the former, it offers flexibility and the potential to earn great money. For the latter, it opens up a whole new world of hiring possibilities and helps to save costs.

Fiverr has generated very strong growth in recent years. In 2020, revenue came in at $189.5m, up 77% year-on-year. I think this is just the beginning of the growth story however.

Now, Fiverr is a small-cap stock (by US standards) with a market-cap of just $8bn and very small profits. This means it’s likely to be highly volatile. This type of stock isn’t suitable for those who are risk averse.

I’m comfortable with the risks however. I think this tech stock has enormous long-term growth potential.

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Edward Sheldon owns shares in Apple, Okta, and Fiverr. The Motley Fool UK owns shares of and has recommended Apple, FedEx, Fiverr International, and Okta and recommends the following options: short March 2023 $130 calls on Apple and long March 2023 $120 calls on Apple. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

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