Thanks to a host of geopolitical issues, high inflation, rising interest rates, and the continuing aftershocks of the pandemic, the stock market has seen better days. And in these tumultuous economic times, finding cheap tech stocks that you can feel good about buying might seem like searching for a needle in a haystack.

But you know what they say about finding great buys when there's blood in the streets. This market downturn has actually set up a bunch of tempting investment ideas in the eternally volatile tech sector -- among them, PubMatic (PUBM -4.52%) and Fiverr International (FVRR -3.97%).

Reports of PubMatic's death have been greatly exaggerated

PubMatic operates a programmatic advertising platform that helps advertisers buy ad space across a wide range of digital media channels, including websites, mobile apps, and social media platforms. It uses machine learning algorithms to target specific audiences and optimize ad placements, leading to better engagement and higher returns on investment for advertisers.

The digital advertising industry has faced some challenges in recent months, with inflation and low returns on ad spending causing some advertisers to cut their marketing budgets.

But PubMatic is actually doing quite well. While the industry as a whole may be facing headwinds, PubMatic has actually seen solid year-over-year revenue growth of 13%. This is a testament to the strength of the company's platform and its ability to attract and retain customers.

Furthermore, its programmatic advertising platform is well-suited to address some of the challenges facing the industry. By using algorithms and data analysis to optimize ad spending, it can help advertisers get more bang for their buck, even in a challenging environment.

Even if PubMatic runs into a financial brick wall, it could afford to operate for several years at a negative cash flow ratio of 10% or more while adjusting its strategies. To be clear, this is a hypothetical thought experiment: The company converted 15% of its revenue into positive free cash flow last year.

And it never hurts when your company rests on a solid balance sheet. PubMatic currently has $174 million of cash and cash equivalents on the books, and no debt to speak of.

So I see its 40% one-year share price drop as a buying opportunity, not a red flag. PubMatic is doing quite alright despite the current downturn in the digital advertising sector.

Robot hand holds a golden egg.

Image source: Getty Images.

Fiverr thrives in a post-pandemic world

Fiverr International operates an online marketplace that connects freelancers with businesses and individuals who need their services. Often seen as a direct play on the lockdowns and work-from-home policies that prevailed early in the pandemic, Fiverr has proven that it can thrive even without those unique conditions.

The company also offers a range of tools and resources to help freelancers manage their workflows, communicate with clients, and get paid. And with their recent increase in active buyers and annual spend per buyer, it seems that more and more businesses are turning to Fiverr for their freelance needs.

Fiverr added 100,000 active buyers of its freelance service in 2022 while boosting the average spend per buyer by 12%. The take rate -- Fiverr's cut of the payments for freelance services that were arranged by its matchmaking tools -- increased from 28.4% to 30%. Total sales jumped 13% and adjusted earnings rose by 18%. That doesn't sound like a stalled also-ran to me.

Now, the stock may look expensive trading at a price-to-earnings ratio of 49. But with a 5-year compound average growth rate of 45.3% on the top line, Fiverr has earned that premium. In fact, the stock trades at just 3.7 times sales -- a perfectly ordinary valuation for a high-octane growth business.

With its share price down 51% over the last 52 weeks, this could be an excellent time for investors to consider adding Fiverr to their portfolios.