3 Tech Stocks to Buy with a Modest $3,000 Investment Budget

Three tech stocks could deliver considerable returns from a $3,000 investment budget: Alphabet (GOOGL/GOOG), The Trade Desk (TTD), and one other stock. Alphabet’s low P/E ratio of 22 suggests pessimism is overdone, and its diversified business with Google Cloud, Waymo, and other ventures could drive revenue growth. The Trade Desk’s critical tool for advertisers and ad agencies could benefit from its AI-driven Kokai platform transition.

For investors looking to grow their $3,000 investment budget, several tech stocks offer promising potential. While the task of doubling capital multiple times is challenging, these three tech stocks—Alphabet (GOOGL/GOOG), The Trade Desk (TTD), and Roku (ROKU)—could deliver considerable returns. This article explores the potential of these stocks based on recent developments and market trends.

Alphabet (GOOGL/GOOG)
Alphabet, the parent company of Google, has seen its stock price drop due to concerns about its reliance on digital advertising. However, a closer look reveals that Alphabet’s P/E ratio of 22 makes it one of the “Magnificent Seven” stocks with the lowest valuation [1]. Despite the challenges posed by the rise of generative AI, Alphabet has diversified its revenue streams. Google Cloud, which constitutes 14% of the company’s revenue, and Waymo, a potential future revenue source, demonstrate Alphabet’s preparedness for a shift away from ad revenue [1]. Additionally, Alphabet’s liquidity of $95 billion and free cash flow of $67 billion over the trailing 12 months indicate a strong financial position [1]. These factors suggest that Alphabet could be an attractive buy for value investors.

The Trade Desk (TTD)
The Trade Desk has faced investor skepticism due to recent revenue misses and challenges with “walled gardens” like Alphabet’s Google or Meta Platforms [1]. However, the company offers a critical tool for advertisers and ad agencies to place ads on platforms with high return potential. Its transition to the AI-driven Kokai platform could enhance its offerings and mitigate the risks associated with “walled gardens” [1]. Moreover, with a forward P/E ratio of 31, which is significantly lower than the average since the beginning of 2023, The Trade Desk may present a compelling opportunity for investors [1].

Roku (ROKU)
Roku, the leading TV OS platform in the U.S., Canada, and Mexico, has seen a significant discount in its stock price, currently more than 80% below its July 2021 high [1]. Despite this, Roku’s leadership in streaming and its growing global footprint make it an attractive investment. The company’s streaming hours increased by 17% over the last year, indicating sustained user engagement [1]. Moreover, Roku’s recent earnings report showed a profit of almost $11 million in Q2, signaling progress towards operational profitability by next year [1]. With a P/S ratio of just above 3, Roku’s stock appears undervalued, presenting a potential buying opportunity [1].

In conclusion, Alphabet, The Trade Desk, and Roku offer compelling investment opportunities for those with a $3,000 budget. Alphabet’s diversified business and strong financial position, The Trade Desk’s critical tool for advertisers, and Roku’s leadership in streaming and growing user base make these stocks worth considering. However, investors should conduct thorough research and consider their risk tolerance before making investment decisions.

References:
[1] https://finance.yahoo.com/news/3-000-3-stocks-could-115800432.html
[2]