With the stock market bouncing back this year, investors are probably ready to take a closer look at companies in the technology sector. These businesses were largely disregarded last year and viewed as being too risky. But some of the best opportunities can be found here. 

If you've got $3,000 that you're ready to invest in tech stocks, then look no further than the three dominant internet-age businesses: Amazon (AMZN 3.43%), Alphabet (GOOGL 10.22%) (GOOG 9.96%), and Meta Platforms (META 0.43%). It would be a smart idea to put $1,000 into each of them. 

Great businesses 

All three enterprises touch the lives of businesses and consumers daily, demonstrating how successful they have become. And because they are so essential, the investment cases for owning them are very convincing. 

Amazon has become the clear leader in the e-commerce sector, commanding nearly 40% of all online sales in the U.S. Its third-party seller services, a lucrative operation and the lifeblood of many merchants, grew revenue by 18% in the latest quarter (Q2 2023 ended June 30). And the company's cloud segment, Amazon Web Services (AWS), has the top market share in the industry, with an operating margin of over 20%. 

Alphabet has one of the most successful services of all time in Google Search, which accounts for 57% of overall company revenue and has an over-92% market share. YouTube is the most watched streaming service in the U.S. Google Cloud is posting faster sales growth than AWS. And with an operating margin of 29% last quarter, Alphabet is an extremely profitable business. 

Meta proved with its latest quarterly results that it's still thriving, as revenue accelerated to an 11% year-over-year gain. Its Family of Apps division, which includes Facebook, Instagram, WhatsApp, and Messenger, increased daily active users by 7% year over year to a whopping 3.07 billion. And like Alphabet, the operating margin of 29% was stellar. 

Investors might not be so optimistic about the mounting losses of Reality Labs. But it's hard to bet against Mark Zuckerberg, no matter how crazy his vision may be. 

Reasonable valuations 

With Amazon, Alphabet, and Meta shares up 59%, 45%, and 140%, respectively, in 2023 (as of Aug. 21), investors might think they're overvalued and thus should be avoided. This isn't the case, though. All three are still well below their all-time highs from 2021. 

Amazon's stock is currently trading at a price-to-sales multiple of 2.6, well below its trailing three-year average of 3.3. And Alphabet and Meta, although much more expensive than they were at the end of last year, look reasonably valued as well. The search giant trades at a forward price-to-earnings ratio of 23, while the social media juggernaut carries a multiple of 21.5. Those look like good deals that investors should take advantage of. 

Regulatory hurdles 

Investors might point out that these companies remain targets of regulatory agencies looking to reduce their monopolistic powers. While it's a fair assessment that their massive size and influence over consumers and their end markets will likely result in ongoing scrutiny from governments around the world, I think this is simply indicative of the tremendous success they've achieved. If regulation presents one of the biggest risks, I'm fine with that. 

Another way to think about this situation is this: If governing bodies force the tech giants to spin off their various businesses into stand-alone public entities, it could unlock huge value for shareholders. What valuation would Amazon Web Services or Google Cloud Platform fetch as separate companies? Who wouldn't want a direct ownership stake in YouTube or Google Search? In Meta's case, I'm positive there would be interest in owning shares of Instagram or WhatsApp. 

It's anyone's guess whether or not major spin-offs happen, but it's encouraging for investors to know that by buying shares of Amazon, Alphabet, and Meta, their portfolios will have positions in truly dominant businesses that still have lots of growth potential.