Tech stocks continued to take a beating last week. Highlighting how tech stocks have sold off sharply recently, the tech-heavy Nasdaq Composite is down more than 9% since Feb. 13 yet S&P 500, which has greater diversification across more sectors, is down only 2%. But even the Nasdaq's pullback doesn't fully capture how badly some tech stocks have been it, as many growth stocks in the tech sector declined even more sharply than the Nasdaq.

While some tech stocks may have been overdue for a pullback after a huge run-up last year, others have arguably become oversold. Two tech stocks that look particularly attractive right now are Apple (AAPL 1.97%) and Pinterest (PINS 0.73%), whose shares have fallen about 10% and 19%, respectively, since mid-February.

Here's why investors may want to take a closer look at both of these tech stocks.

A person tapping a buy button on a keyboard

Image source: Getty Images.


Though Apple has a market capitalization of nearly $2 trillion, the company is still growing rapidly. The tech giant's revenue in its most recent quarter rose 21% year over year, helped by double-digit growth in every product category and record revenue in each of its geographic segments. 

Looking further beneath the surface, there's even more reason for investors to be optimistic about Apple's growth potential. The tech company's most profitable segment -- services -- is growing faster than its consolidated top line. Fiscal first-quarter services revenue was $15.8 billion, up 24% year over year. This segment boasts a lucrative gross profit margin of 64% -- far ahead of the 35% profit margin Apple's product segment had in the same period (the first quarter of fiscal 2021). As Apple's second-largest segment after iPhone, its services segment importantly looks poised to serve as a significant catalyst for the tech giant's business for years to come.

Apple's price-to-earnings ratio of approximately 31 today may seem expensive at first glance. But investors should realize that the tech giant's earnings per share is growing even faster than revenue thanks to the company's aggressive share repurchase program. Fiscal-first quarter earnings per share increased 35% year over year.


One stock that has been hit exceptionally hard recently is visual search and media platform operator Pinterest. Shares seem to be taking a breather after an enormous run-up over the past year. Even including the stock's recent slide, shares are up more than 250% over the past twelve months.

With a $41 billion market capitalization despite generating only $1.7 billion in 2020 revenue, Pinterest better be doing something incredible to justify this steep premium. Fortunately, it is. Its revenue growth has been accelerating as marketers have increasingly bet on Pinterest as a great platform for a growing portion of their ad spend. Full-year 2020 revenue increased 48% year over year and Q4 2020 revenue notably soared 76% year over year.

Highlighting the health of the company's underlying discovery platform, Pinterest garnered 459 million monthly active users by the end of the year, up 37% year over year. In addition, it achieved strong growth in monthly active users both in the U.S. and internationally, suggesting there's great global appeal for Pinterest's visual search and media platform.

While it's impossible to know where the bottom is for sell-offs like this, these two company's shares are looking more attractive now that they are trading lower. For investors willing to hold these stocks for the long haul, this could be a good time to buy a stake in two very successful businesses.