Discounted tech stocks to buy are plenty. The great tech wreck of 2022 is in stark contrast to the easy gains investors enjoyed between 2020-2021. With the pandemic, the associated lockdown, low interest rates, and the endless stimulus packages absent, tech stocks are at a multi-year discount.

Speculators are no longer willing to bet on unproven technology companies. They are shunning companies that are either too expensive, warned markets that growth will slow, or do not make a profit.

Now that they are out of favor, investors who missed out on the tremendous run-up before this year have another chance. Since no one can predict when the technology sell-off will end, long-term investors may minimize buying risks. Instead of buying full positions in discounted tech stocks, buy them in phases. That way, if a stock gets cheaper, buy-and-hold investors may buy the stock again to lower the price paid.

Be prepared to hold the companies for several quarters. The market sentiment is not about to turn positive and stay there. Similarly, a company’s business turnaround could take several quarters. Struggling firms might need to cut costs and foster growth before the business improves.

Adobe (ADBE)

Adobe (NASDAQ:ADBE) traded as high as $699.54 last year and is less than half that price. The company wants to strengthen its offering in collaborative web applications. It proposed to buy Figma for a high price tag of $20 billion. The Department of Justice is preparing to probe Adobe’s deal.

Figma released its first software in 2016. The products would help graphic designers make mobile applications and websites faster. Adobe’s Chief Executive Officer, Shantanu Narayen, said multiple people would need more collaboration. Adobe’s knowledge workers would use Figma’s collaborative whiteboarding through the FigJam product.

Adobe needs to strengthen its creative collaboration software. Customers may start to cancel their monthly subscription if the return on their investment falls. Adobe has grown in its imaging, vector, and video technology in the last few decades. Today, mobile applications have an enormous addressable market opportunity.

Although Adobe is navigating tough macroeconomic headwinds, it has solid new user acquisition, and robust engagement and retention levels remain.

Datadog (DDOG)

Datadog (NASDAQ:DDOG) is a cloud-scale applications provider. In the third quarter, it posted revenue growing by 61% Y/Y to $437 million. DDOG stock could trend lower since it still loses money on a GAAP basis. In this bear market, cautious investors are wary of taking a big position in this company. However, they need to realize that customers still need hyperscalers to optimize costs.

Datadog’s longtime customers will not slow down on their migration to the cloud. They have an urgency to scale their backend solution on Datadog’s platform. This private environment is not the only growth catalyst. In the private environment, customers need their critical environment supported by Datadog’s hyperscaler.

Cybersecurity is an ongoing concern for customers. Fortunately, Datadog has many security use cases. For example, it could consolidate its cost structure instead of having its data managed by different vendors. It gives Datadog a chance to demonstrate the value of using its product more frequently. This increases its revenue potential per customer.

Cloudflare (NET)

Cloudflare (NYSE:NET) stock dropped by nearly one-fifth in value on Nov. 4 after it posted results. Revenue grew by 47.3% Y/Y to $253.86M, but it only earned six cents a share (non-GAAP). Its GAAP net loss was $42.5 million.

Investors dumped the stock because Cloudflare reported delayed buying decisions from customers. For example, customers are more sensitive to prices in the Asia Pacific region. The company will realize revenue in future quarters by pushing out its Cloudflare orders later.

Investors may take advantage of the market panic by adding a starter position at current levels. Still, near-term risks are on the rise. Churn rates from pay-as-you-go customers increased due mainly to a shift down to its free customer tier.

Investors may also bet that as the economy rebounds in 2023, the non-revenue-generating customers will upgrade their service back to the paid level. In the last quarter, Cloudflare ended the quarter with 1,908 large customers. As they order more services, revenue from these customers will expand. Thus, NET is one of the top discounted tech stocks to buy.

ServiceNow (NOW)

ServiceNow (NYSE:NOW) is on sale after the company posted mixed results. Revenue grew by 21.2% Y/Y to $1.83 billion. However, the software firm lowered its subscription revenue guidance for the year.

Servicenow has a loyal customer base. It had 1,530 customers paying over $1 million in annual contract value or ACV. In Q3, it reported a renewal rate of 98%. Thus, it makes the list as one of the discounted tech stocks to buy.

Servicenow has a durable business that thrives regardless of economic conditions. It sells a mission-critical solution, and the Now platform is the standard in digital transformation. Customers need the Now platform to drive automation and productivity in this increasingly weaker economy. In addition, the great resignation movement is still a threat to corporations. Servicenow increases customer satisfaction. Corporate customers benefit from the product by offering a pleasant experience for their employees.

Investors may worry about the lofty price-to-earnings of NOW stock. However, the company has strong close rates. It is confident that it will win more deals in the coming quarters.

Okta (OKTA)

Okta (NASDAQ:OKTA) manages and secures user authentication for client applications. As customers continue to pivot away from the access management market from Windows Systems, Okta’s privilege access management and identity governance market will thrive.

Investors are worried that Okta’s growth rate will slow. The firm is adjusting for a potential slowdown by improving its efficiency over time. It is investing in the business. For example, it increased its sales and marketing representatives. Fortunately, it is not over-hiring staff. It balances its support for growth by minimizing its cash burn rate.

At these levels, the stock is likely pricing in expectations of a slower long-term growth rate. Still, Okta proved that it could compete in this marketplace.

In the second quarter, Okta posted strong subscription revenue growth. For the year, it expects revenue will grow by between 39% to 40% Y/Y. Still, it will lose up to $105 million (non-GAAP). Once Okta finds a path to profitability, the stock will rise.

Qualcomm (QCOM)

Qualcomm (NASDAQ:QCOM) fell after posting strong revenue growth in the quarter. Investors are worried about the company facing a rapid deterioration in demand. In addition, the easing supply constraint created an elevated channel inventory. As a result, the company cut its earnings per share guidance by 80 cents.

QCOM stock is a bargain from here. Investors have priced in the macro headwinds that are hurting consumer handset demand. Furthermore, the sector has an overhang in inventory after the channel delays eased. Investors need only wait for Qualcomm and its customers to work through the inventory levels from here.

Long-term trends are favorable for Qualcomm. Customers are increasing their Qualcomm content levels. This will increase its license revenue. In addition, the average selling price is rising. This will keep Qualcomm’s gross margins at strong levels.

This chip maker could post strong EPS growth in 2023. The OEM inventory drawdown could clear in as little as one quarter. Long-term investors who get QCOM stock at a discount will benefit when the market improves. Thus, this is one of the discounted tech stocks to buy.

Twilio (TWLO)

Twilio (NYSE:TWLO) plunged by 35% on Nov. 4 after posting Q3 results a day earlier. Despite revenue growing by 32.8% Y/Y, it lost $457 million on a GAAP basis.

Twilio needs to turn one-time transaction deals into long-term customer relationships. It will do so by demonstrating why communications and data are better together. The company needs to show its customers that engagement increases with Twilio’s solution.

The company is betting that Twilio Engage will improve customer engagement levels. Engage integrates a customer data platform with a communications API. It will need time to convince investors that customers will buy the Engage platform.

Twilio has a healthy balance sheet. It has $4.2 billion in cash. It can buy back shares, seek merger and acquisition opportunities, or invest in research and development. Before it acquires any firm, it will need to achieve non-GAAP profitability in 2023. Investors are more likely to buy this discounted tech stock when the company is not losing money.

On the date of publication, Chris Lau did not have (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.