The Nasdaq-100 is an index monitoring some of the largest technology companies in the world. So far in 2022, the index is down over 32% with some of the index's top holdings, like Meta Platforms and Netflix, trading down more than 50%. This index, which had a lofty price-to-earnings ratio of 35 a year ago, is now sporting a much more affordable P/E of 23. That's a huge swing in the valuations of these technology companies.
If you have $5,000 available that's not needed to pay bills, bolster an emergency fund, or reduce short-term debt, now could be a great time to buy some tech stocks as so many are trading at discounted prices. I'd consider putting that available cash toward two tech stocks currently trading at a discount -- Electronic Arts (NASDAQ: EA) and Wix.com (NASDAQ: WIX) . Both are great buy-and-hold candidates and worthy of further investigation. Here's why.
You may know Electronic Arts (EA) as the publisher of the popular EA Sports games. These include FIFA Soccer , Madden NFL , and others. These offerings have virtual monopolies on sports simulation games. Annual game releases and the growth of in-game purchases make these sports franchises highly profitable, and they are the key factor in why EA's stock is up about 25,000% since it went public a few decades ago.
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Got $5,000? 2 Tech Stocks to Buy and Hold for the Long Term