Headlines might say technology stocks have been rallying this year, but it depends on where you look. The Russell 2000 Index, for example, tracks small-t0-midsized capitalization stocks listed in the United States. That index’s performance for the first and second quarters has been rather lackluster compared to the Nasdaq Composite and S&P500. Tech giants like Nvidia (NASDAQ:NVDA) have led the large-cap rally, pushing the two major stock indices to new heights.
However, smaller and mid-sized tech stocks have not performed as well as their large-cap counterparts. This is likely due to a mere risk assessment of the two categories — traders and investors are more bullish on larger stocks with relatively stabler customer bases than smaller companies.
In turn, a handful of technology stocks are sitting at all-time lows. Some are worth investing in, while others are not. Below are three tech stocks at all time lows that are worth your consideration.
Corsair Gaming (CRSR)
Any gamers would have heard of the gaming technology firm Corsair Gaming (NASDAQ:CRSR). The company develops everything from gaming keyboards, mice, headsets, controllers and streaming products to face-cam cameras, studio accessories and gaming furniture. However, Corsair’s most advanced and interesting technologies are its power units and cooling systems, which help power a desktop PC and keep the central processing unit (CPU) cool.
Corsair is likely at a 52-week low because of the lack of demand for new consumer technology products. You see, during the COVID-19 pandemic, there was a major uptick in spending on technology products as many people had to work or school from their homes due to the lockdowns. That glut of consumer products c, coupled with waning demand from inflation and high interest rates h, resulted in sluggish growth for Corsair. In 2023, the gaming tech company registered a meager 6.2% year-over-year growth in revenue.
In mid-July, Corsair has hit an all-time low of $8.21. Because Corsair carries a low trading multiple and a recovery in the consumer tech market is likely to come soon, the company looks like a “buy” to me.
Amplitude (AMPL)
Amplitude (NASDAQ:AMPL) provides its enterprises with data analytics software that helps them gather useful data on sales and marketing, as well as product performance. In other words, Amplitude helps businesses uncover useful customer data and act on it. Amplitude’s Digital Analytics Platform has three key components: Analytics, Experiment and Session Replay.
According to the firm’s most recent SEC 10K Filing, Analytics provides real-time product data so cross-functional teams can understand which products are working and which aren’t. Amplitude’s Experiment product integrates with Analytics to allow for the testing of new capabilities and the rollout of those features. Moreover, Session Replay is deeply integrated with Analytics, enabling customers to reconstruct revisited interactions with a website or app.
Amplitude’s 2023 year-over-year growth was 6%, markedly slower than prior years. However, the firm has expanded margins from 70.4% in 2022 to 73.9%, showing efforts to increase operational efficiency. Growth and margins stayed strong in the first quarter as well.
AMPL hit an all-time low of $8.07. in mid-July and still trades around that price.
Olo (OLO)
Investors interested in a restaurant SaaS platform should consider Olo (NYSE:OLO). Olo’s platform allows restaurants to process and manage orders, enable deliveries and employ payment solutions. In addition, Olo provides the “Guest Data Platform Module,” which helps restaurants collect and analyze their guest data to enact effective growth marketing campaigns.
Given all the macroeconomic uncertainty these past couple of years, it’s almost no wonder Olo is trading near its all-time low of $4.25. Inflationary pressures, interest rate hikes and geopolitical events created enormous surges in food and labor costs, particularly in the services industry, which includes restaurants. As restaurants raised prices, delivery order traffic sank and with fewer customers, restaurants have been naturally less inclined to implement new technologies. This explains the compression of top-line growth rates Ols reported in the past fiscal years.
However, with inflation coming down, spending on restaurant SaaS tools could pick up, ultimately benefitting Olo.
On the date of publication, Tyrik Torres did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.