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2 Tech Stocks to Watch: Opportunities Amid Market Volatility

In the early days of March, the stock market shows resilience despite periodic bouts of volatility. 

Amidst this backdrop, savvy investors eye opportunities in the technology sector, where certain stocks have experienced significant declines from their recent peaks. In this article we delve into two standout tech stocks trading at least 15% below their all-time highs: Apple (AAPL) and Block (SQ).

square payment method, investment stock

Apple (AAPL)
Apple's stock has retreated 12% year-to-date, contrasting with the broader tech sector's 9% climb and Nvidia's remarkable 85% surge. Concerns loom over Apple's growth prospects in China amidst geopolitical tensions and perceived AI lag. However, such apprehensions may overlook Apple's resilience and its evolving business model under CEO Tim Cook.

Despite the challenges, Apple's ecosystem continues to expand, with over 2.2 billion active devices and a burgeoning services segment that includes the App Store, Apple Wallet, and video game platform. Moreover, its foray into enterprise solutions with Vision Pro devices underscores its diversified revenue streams beyond iPhone sales.

While recent performance has lagged, Apple's fundamentals remain robust. With a solid balance sheet boasting $65 billion in net cash, the company continues its shareholder-friendly initiatives through stock buybacks and dividends. Furthermore, trading below its historical valuation multiples, Apple presents an attractive opportunity for investors eyeing long-term growth potential.

Block Inc. (SQ)
Formerly Square, Block Inc. finds itself trading over 70% below its previous highs, reflecting broader concerns over rising interest rates and competitive pressures. The company's acquisition of Afterpay at a seemingly inflated valuation and its reliance on pandemic-induced growth have contributed to investor skepticism.

Nevertheless, Block remains a pioneering force in digital banking and financial services, anchored by its Square payment solutions and Cash App. Despite recent challenges, the company's revenue growth trajectory remains intact, with double-digit expansion projected over the coming years. Notably, Block's cost-cutting initiatives and improving margins signal a path towards sustainable profitability.

Looking ahead, Block aims to leverage its integrated platform to drive growth across its seller and consumer segments. By prioritizing innovation and efficiency, the company seeks to solidify its position in key demographics, particularly among younger generations.

In a market characterized by volatility, opportunities abound for discerning investors. Both Apple and Block stand out as compelling choices, trading at significant discounts from their peak valuations. With strong fundamentals and innovative business models, these tech giants offer potential for long-term growth despite short-term headwinds. As market dynamics continue to evolve, staying vigilant and seizing opportunities amid downturns remain paramount for investors navigating today's landscape.

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