The technology sector has been hit hard following a three-decade run that saw the tech-heavy Nasdaq 100 gain nearly 4,000%. However, in 2022 it's down 28%, putting it deep into bear market territory.

But that makes the sector ripe with opportunity, as so many former high-flying names have been hit hard by the downturn. It means previously untouchable tech stocks are now much more affordable, and by buying some of the top companies that still possess great growth prospects, their newly discounted prices under $20 a share makes them a bargain.

Digital representation of artificial intelligence.

Image source: Getty Images.


The global artificial intelligence (AI) market is expected to nearly double by 2030, hitting $1.6 trillion for a compound growth rate of 36% annually, according to Precedence Research. (AI -5.24%) is tapping into that enormous growth market by providing AI solutions for business across data and network security, customer engagement, fraud detection, and supply chains that can be configured for a customer's individual needs.

Although suffering a setback during the lockdown phase of the coronavirus pandemic since much business activity was turned off, is making up for lost time by expanding its target market beyond just enterprise-class corporations and including businesses of all sizes.

Fiscal third-quarter revenue for the period ending Jan. 31 experienced a 42% jump to almost $70 million, while subscription revenue jumped 34% year over year. The number of customers it serves increased 82% to 218 across 15 different industries and includes the U.S. Defense Department, which awarded it a five-year, $500 million contract. 

At under $17 a share, has lost more than three-quarters of its value from the highs it hit almost one year ago after its IPO. Worries about customer concentration, though, seem to be fading as it builds out its base, and this AI stock could be a cheap one to buy now.

Person looking at hourglass while holding calculator.

Image source: Getty Images.

2. Expensify

Another stock struck down by the pandemic lockdowns and the subsequent collapse in business travel, expense management software provider Expensify (EXFY -2.72%) is another relatively new entrant to the market following its November 2021 IPO. It's lost nearly two-thirds of its value over the ensuing months as management's uncertainty over economic conditions caused it to say it will stop providing quarterly guidance. But that should actually be seen as a feature, not a bug.

Management prefers to focus on the long-range outlook for its business, not short-term fixes. On that front, Expensify sees revenue growing sustainably at a rate of 2% to 3% every month, giving it confidence to predict long-term growth of 25% to 30% over multiyear periods.

Expensify thinks its stock is discounted, having authorized a $50 million buyback program, and paid user growth exceeded expectations, coming in at 706,000 members. While that's still below what it ended 2021 with, at the end of March that figure spiked to 742,000 members, the second-best month in the company's history.

While analysts have lowered their price targets for Expensify in recent months, it's still seen as having good growth prospects because of what JMP Securities analyst Patrick Walravens calls "super easy-to-use" software and a viral business model. 

Person with notebook talking on phone.

Image source: Getty Images.

3. Squarespace

Trading just under $20 a share at the time of this writing, Squarespace (SQSP -3.17%) could be above that threshold by the time you read this. No matter -- the website builder is a stock for long-term growth opportunities. 

Like rivals Shopify and Wix, SquareSpace has transitioned from just giving entrepreneurs an online presence to also providing them with an e-commerce product. But it goes beyond that by also offering scheduling, invoicing, appointments, and more. Obviously, while e-commerce is experiencing some softness in the current economic climate, Squarespace stays strong because it is so well-rounded with many capabilities that will all grow in the years to come.

President and CEO Anthony Casalena told analysts earlier this month: "I just see them all being bigger, and more online and transactions flowing more to online sources over the next couple of years. So, I'm really happy with how we're situated there."

Squarespace went public one year ago as well and has lost 70% of its value since then, making its stock more affordable. Its business benefited from small and medium-sized companies moving online over the past two years, a trend that has long legs for the future.