The Nasdaq has taken a few hits recently as some investors have shifted their focus away from tech stocks. Investors are trying to figure out what sector will continue growing as the U.S. slowly emerges from the pandemic and more areas of the economy begin to open up.

But the recent exodus from tech stocks has left savvy investors with some unique buying opportunities right now. To help you track down a few great tech companies that look cheap, we asked a few Motley Fool contributors for their top picks. They came back with Teladoc Health (TDOC -0.07%), Zoom Video Communications (ZM 0.05%), and Roku (ROKU 0.15%). Here's why. 

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There's no going back

Danny Vena (Teladoc): Investors writing their own narrative about the recovery decided to divide stocks into two camps: pandemic stocks and recovery stocks. While those rather broad categories will be meaningless over the long term, that hasn't stopped many best-in-breed companies from getting caught up in the significant downturn in tech and high-growth stocks.

Teladoc Health is one such company. The common thinking is that once the pandemic is in the rearview mirror, the vast majority of patients that used telehealth over the past year will forego these virtual appointments in favor of in-person office visits. The evidence simply doesn't support that argument.

Patients have wholeheartedly embraced digital healthcare, and recent studies suggest that the majority will continue to use telehealth in the months and years to come. A survey of 2,700 patients reported 90% of patients said the quality of care received during video visits with their physician was as good, if not better than regular office visits, according to research conducted by Accenture. A full 60% of respondents said they planned to use telemedicine and digital solutions even more in the future to communicate with their healthcare providers and manage conditions. 

There's no denying the pandemic boosted the adoption of telehealth, and as the industry leader, Teladoc reaped the rewards. Total revenue grew 98% year over year in 2020, fueled by total patient visits that increased 206%. While the bottom-line results were muddied by acquisition-related expenses and income tax complications, the company's adjusted-EBITDA (earnings before interest, taxes, depreciation, and amortization) increased 298%. 

Teladoc provides a rare set of solutions to its growing network of doctors, patients, and insurers where everybody wins. Telehealth visits increase access and improve the quality of care for patients, reduce the burden on the healthcare system, and lower the overall cost of care.

Another reason to bet on Teladoc is its recent acquisition of Livongo Health. The company provides industry-leading solutions for those managing chronic conditions. There are more than 147 million patients dealing with at least one chronic condition. This includes solutions for diabetes, hypertension, weight management, diabetes prevention, and behavioral health. Livongo uses connected devices to provide reminders, tips, and tricks to achieve a better quality of life for those patients.

Prior to the merger, Teladoc's management has estimated its total addressable market as high as $30 billion. Livongo Health pegged the market for diabetes management alone at $16 billion, while the other chronic conditions it addresses represents an additional $18 billion opportunity. This represents a combined addressable market of more than $64 billion, and Teladoc believes there is a significant opportunity for cross-selling. Considering that Teladoc generated just $1.09 billion in revenue for 2020, there's a long runway ahead for growth.

Given its recent decline of 35%, Teladoc is starting to look mighty cheap, particularly given the breadth of its opportunity.

A woman on a video call.

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Will the coronavirus vaccine crush Zoom?

Brian Withers (Zoom): The mega-popular video platform Zoom has set records every quarter during the coronavirus pandemic. Millions flocked to its easy-to-use tools to connect with family, friends, and colleagues in a safe socially distanced way. The growth has been unprecedented, but investors are worried how the vaccine will impact the company going forward. To get an idea, let's look at sequential growth from Q3 to Q4 and the forecast for the coming year.


Q4 FY2020

Q3 FY2021

Q4 FY2021

QOQ change

YOY change


$188 million

$777 million

$883 million



$100K-plus customers






Net income

$15 million

$198 million

$260 million



Data source: Company earnings reports. Note that Q4 FY2021 ended on January 31, 2021. QOQ = quarter-over-quarter. YOY = year-over-year.

The table above shows revenue, customers spending more than $100,000 annually, and net income are all growing in solid double digits from Q3 to Q4. This indicates that the company is still signing up customers at a rapid pace, growing its base of existing customers, and scaling its business to be more efficient to bring more money to the bottom line. 

It seems there's nothing in the current quarter's results that indicates that customers are abandoning the platform. In fact, many large customers are signing up for even more services, especially with the company posting its 11th quarter of 130%-plus net dollar expansion rate. As for the outlook, it's solid too. Management is expecting the upcoming quarter's revenue to be $900 million to $905 million, a 2.2% sequential growth rate at the midpoint, and a 175% year-over-year growth. Full-year revenue is expected to be around $3.77 billion, which represents a 42% year-over-year growth on a year of incredible growth numbers.

Let's look at a couple of facts. The stock is about 40% off its all-time high last year. Management is expecting to grow 42% year over year, in a year where the vaccine rollout will be getting people back in the office. Lastly, the company added over 1,000 customers in the last 12 months that are paying greater than $100,000 annually. It's pretty clear the gains Zoom has made during the coronavirus are here to stay and will be a solid platform to build on for years to come. Long-term minded investors would do well to snap up this high-growth tech stock before the market figures out it's on sale.

A boy looking at a tablet.

Image source: Getty Images.

Don't pass up Roku's recent drop

Chris Neiger (Roku): Roku stock is down 24% over the past 30 days, giving investors a perfect buying opportunity right now. What's crazy about this drop is that it's come after the company reported a blowout fourth quarter.

The company's diluted non-GAAP fourth-quarter earnings of $0.49 per share blew past analysts' consensus estimate of a loss of $0.05 per share. That was an impressive beat on its own, but the company's sales of $649.9 million easily beat Wall Street's expectation of $617.7 million as well. 

There were lots of other highlights from the quarter as well, including the fact that 51 million active Roku users streamed more than 17 billion hours of content in the quarter, up from 37 million users and 11.7 billion hours in the year-ago quarter. 

And those users aren't just spending more time on the video streaming platform, they're spending more money as well. Roku said that the average revenue per user increased 24% to $28.76 in 2020, up from $23.14 in 2019.

Investors should know that there's likely more growth ahead for Roku's platform. The company just announced a couple of weeks ago that it's acquiring Nielsen's ad technology business, which could give the company even more advertising opportunities in linear TV. 

In short, Roku is growing fast, it's opening up more avenues for advertising sales, and its share price looks like a bargain right now. For tech investors on the hunt for a deal, look no further than Roku stock.