It’s been a turbulent start to the year for Tech, with the Nasdaq 100 Index (QQQ) sliding more than 18% from its highs and the Nasdaq Composite down more than 20% from its highs. While some might attribute the correction to geopolitical instability, I believe the correction was long overdue regardless of the Russia/Ukraine news, with rising rates and frothy valuations creating the ingredients for a substantial correction in 2022.
Fortunately, for investors that were patient and took some profits into Q4, the market is now beginning to get oversold, and some names are finally on the sale rack after this sharp correction. A couple of these names are mega-cap companies with a history of strong growth, with both Meta Platforms (FB) and Netflix (NFLX) trading at massive discounts to their historical earnings multiples. Let’s take a closer look at both companies below:
