3 Tech Stocks To Buy Instead of Facebook

Facebook stock took a hit in late July, making it a scary and unattractive investment for many. The social media giant lost 20 percent of its value in one afternoon, the biggest drop since 2012. The upside to the situation is that other tech stocks are currently a great value, especially now that the market is fearful.

The following three companies are a great place to start:

Alphabet, Inc

Alphabet, which acts as a parent to Google, suffered a ripple effect from the Facebook fallout, losing two percent of its value. This has no effect on its growth potential. The company had a strong second quarter due to lower than expected traffic costs and significantly higher revenue. Its advertising business expanded, and the mobile, cloud and hardware divisions did very well, which is a signal for gains going into the future. In addition, the European General Data Protection Regulation (GDPR) may help Google to continue building its business.

PayPal

PayPal also felt a jolt from the Facebook fiasco, losing three percent of its value in one night. The payment platform was already under scrutiny from investors due to its divorce from eBay. While PayPal’s business may currently see a small decline, its future is looking bright because of its relationships with 19 million merchants and 237 million consumers. There is also potential in Venmo, which is the new peer-to-peer platform launched by PayPal. While Venmo still requires further development, it will be a lucrative asset in the years to come.

Intel

Intel stock did not lose much value after Facebook’s poor performance, but it has been a question mark for investors because of uncertainty over its ability to compete against other semi-conductors. In recent years, the shift toward data has put Intel in a position to compete with Advanced Micro Devices (AMD), but there is more than enough space in the semi-conductor industry for both companies to operate. Tech is expected to see a great deal of growth in the next 10 years, resulting in enough demand to keep Intel on top both strategically and financially. Intel’s big second quarter, coupled with the anticipated announcement of a new CEO, will likely increase the company’s value and its stock price.

With these three companies poised to make significant gains in the next few years, there is no reason to hold back from investing in tech stocks.

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