A confluence of economic and political factors exacerbated the tech stock rout last month. An impending 50-basis-point interest rate hike this month, coupled with a weak earnings season for various big tech companies, is expected to keep tech stocks under pressure in the near term.
Despite the risk-off environment, several tech stocks have maintained strong balance sheets, attractive valuations, and positive analyst sentiments. Furthermore, the recent tech sell-off provides a golden opportunity to invest in quality tech stocks at a discount. Given their impressive growth attributes, we think it could be wise to invest in high-quality tech stocks GoDaddy Inc. (GDDY) and International Business Machines Corporation (IBM).
