3 Top Tech Stocks to Buy at a Discount

Stocks are off to a wild start this year as the GameStop Corp. (NYSE: GME) saga sent markets into a frenzy.

But this volatility knocked many excellent tech stocks are off their highs for no particular reason. That's an opportunity for us. This means great stocks can be found at a discount and can make for a great entry point if you might have missed out on a big run up.

I'm looking at companies where the story hasn't changed, only the share price. These companies are still leaders in the major themes I've looked at over the past year. I'm talking about e-commerce, connected TV, and the growth in digital data.

That's giving you the perfect opportunity to buy these top tech stocks at a great discount...

The Tech Stock Taking on E-Commerce

We first started talking about MercadoLibre Inc. (NASDAQ: MELI) back in June of last year as the "Amazon of Latin America," and now it is trading at almost $2,000 a share, or double what it was last year. With the pullback, it traded close to $1,700.

But the story has not changed at all.

MercadoLibre is still a powerhouse in e-commerce and will continue to prosper as it sees strong tailwinds driven by the COVID-19 pandemic. There has been a clear acceleration in this business and digital payments of which MercadoLibre also operates in.

Its gross merchandise volume was up over 100% in Q3 2020, and in Argentina, it was up over 200%. Its fintech revenue also grew over 100% after dipping earlier in the year at the onset of the pandemic. With the holiday season still on lockdown, numbers have the potential to look even better to close out the year.

MercadoLibre has already bounced off its 50-day moving average, and the last two times it has gotten this close, we have gone on to make quick new highs. Target prices have also been raised from Deutsche Bank up to $2,200 and Citi at $2,150.

That could be a quick 16% jump for one of the best e-commerce stocks in the world.

Don't Wait on This Top Tech Stock

This is one of the best ways to play the shift from traditional cable to connected TV (CTV).

The Trade Desk Inc. (NASDAQ: TTD) provides the platform used by ad buyers to purchase digital advertising on CTV devices. It has a huge partner list you can see here with companies like BBC.com, CBS Interactive, Fox News, and the MLB. This means that every time you see a commercial on these services from your phone or smart TV, The Trade Desk could be making money.

Last quarter, its CTV business grew over 100% year over year, and it continues to signal strong growth in the future. TTD also said "advertisers are aggressively committing to the Open Internet because of the scale and results of connected TV and premium video."

This is clearly a trend not going away anytime soon, and it will continue to see growth as the 80 million households still using cable migrate to new platforms.

The Trade Desk had come down pretty hard at the end of last year and has yet to recover. It looks like the stock is consolidating, but strong earnings later this month could push the stock back up near highs. Customers like FuboTV Inc. (NYSE: FUBO) have been skyrocketing, and that could be a good sign for The Trade Desk.

Shares are trading at $832.48 right now, down from nearly $1,000 a share in December. They won't stay this low for long.

The Big Data Tech Stock That's Becoming a Must-Own

Search is a building block of the Internet and the foundation of so much we experience every single day. While you typically think of search as a Google feature, it is so much more than that. It's about selecting filters on your favorite photo, matching with a date on Tinder, or catching an Uber. All of these are search at the core and use Elastic NV (NYSE: ESTC).

While the stock has pulled back from its highs around news that it will change the way it licenses its products, Shay Bannon, the CEO, felt that it was a much-needed move to prevent companies like Amazon from ripping off its product.

Elastic has almost 13,000 subscription customers, including huge companies like Walmart Inc., Adobe, T-Mobile, and Audi. I'm not concerned about the pullback as Elastic continues to innovate and introduce new products built on its platform for many different use cases such as security and observability.

It is still sitting about its 50-day moving average, and the volume has not been heavy on down days, leading me to believe that it should rebound nicely.

The Complete List of Best (and Worst) Stocks for 2021

Wall Street insider Shah Gilani says 2021 could be a gold mine for Americans.

He's showing his subscribers exactly which stocks to buy and which to sell.

But you're getting it all for free - no sign-up or credit card required.

Prices, tickers, and company names will be coming your way fast.

It's all right here.

Follow Money Morning onFacebook and Twitter.