Tech stocks offer some of the best value for money on the market, in my view. With low overheads in comparison to other businesses, they can become money printing machines. Amazon, Google, Microsoft, and Facebook are some of the most highly valued companies on the stock market. But this means investors have already found their value. Lots of investors, including Charlie Munger, are looking to Chinese counterparts in the hope that history will repeat itself.

But I think we have some excellent tech companies right here in the UK.

Frictionless transfers

Wise (LSE: WISE) is a company that facilitates money transfers and currency exchanges in near real time. This tech company just went public earlier this year and exploded in value, reaching a high of 1,140p in September. But the share price has, in recent months, been seeing a consistent downtrend and has fallen to 762p. This is to be expected as the market tries to determine the true value of the company.

Wise has increased revenue year on year, but has so far kept profit margins small as it continues to expand its operations. I do think that reduced travel over the next few months could push the share price down further. But revenue actually increased over the pandemic months, which tells me there is demand for this service regardless of how many people go on holiday. I’ll definitely be adding it to my portfolio.

Public sector systems

Idox Group (LSE: IDOX) builds software and data collection programmes for clients across the UK. Its largest customer base is the public sector as councils and government agencies use systems Idox designs to help with collecting and organizing important data. Just this week the Scottish Council of Comhairle nan Eilean Siar began using an Idox software programme to help organize its building and planning permissions data.

Idox currently operates with a very small profit margin and if anything goes wrong this could upset the company’s outlook.

But, once a computer system becomes entrenched in a company or institution and all of its employees learn to rely upon it, then it often becomes very difficult to remove. If this happens then I think the sky’s the limit for Idox.

Idox currently trades for a very low 69p and I’ll be adding it to my portfolio shortly.

Cyber security tech

Darktrace (LSE: DARK) has been in the headlines a lot this year. Like Wise, it exploded into value and rushed all the way up to the FTSE 100 in just a few months. But also like Wise it has seen a big fall in value as insiders sell off their shares and it has failed to grow fast enough to justify the high price.

Despite this, Darktrace has been growing. Revenues are up and expected to continue this way over the next few years. I definitely think that the share’s all-time high of 945p was unrealistic, but the current price of 397p is more reasonable. There could still be further downward inertia as shareholders lose their nerve, but the business remains strong, offering a high-quality product on a subscription model. I’ll be adding it to my portfolio but don’t expect to see it pay off for several years.

James Reynolds has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

Cheap UK stocks are a popular choice for many investors, especially when they come with a sizeable dividend yield to generate a passive income. After all, the lower the price, the more potential room for growth over the long term.

With that in mind, I’ve spotted three companies that meet this description. And with strong tailwinds in their respective industries, I’m quite tempted to add these UK stocks to my portfolio today. Let’s explore.

A top UK mining stock that doesn’t do any mining

The mining industry is hardly a simple area to operate in. Apart from needing all the engineering and ecological expertise, finding, developing, and extracting resources from the ground is fraught with uncertainty. That’s what makes Anglo Pacific (LSE:APF) so interesting to me.

The firm doesn’t engage in any of the typical mining activities. It instead simply provides funding for other leading businesses, like Rio Tinto, to establish a mining site. In exchange for this financial support, they receive a portion of extracted materials as a royalty payment.

That still means the company is exposed to the risk of fluctuating commodity prices. However, it doesn’t have to contend with the extensive risks associated with exploration.

Today this UK stock trades at 131p and offers a chunky 6.6% dividend yield. And after recently adding cobalt to its mineral portfolio, the firm looks primed to continue delivering a large passive income thanks to surging demand for electric vehicle batteries.

Generating a passive income with wind

With global warming becoming an increasing problem, the shift towards renewable energy sources has been accelerated. And with the technology becoming cheaper and more reliable, Greencoat UK Wind (LSE:UKW) is enjoying some favourable tailwinds.

The company owns both on- and offshore wind farms across the UK, generating revenue by selling green electricity. Electricity prices are limited by regulators meaning this stock has no pricing power. That obviously exposes its profit margins to the risk of being squeezed, as operating expenses are primarily fixed.

However, at today’s price of 136p, shareholders are enjoying a 5.25% dividend yield. And with inflation pushing utility prices up, the firm seems to be in a powerful position to reap greater profits in 2022.

Solving the e-commerce storage problem

After the pandemic forced many non-essential stores to close their doors, consumers turned to online shopping for their retail therapy. So, it’s not surprising that the level of investment in retailer e-commerce solutions has suddenly surged.

Unfortunately, that created a bit of a problem. There is only so much warehousing space in ideal locations available. As such, the rental cost per square foot is climbing quite rapidly. And while that’s horrible news for retailers, it’s music to the ears of Warehouse REIT (LSE:WHR).

The firm buys, refurbishes, and rents previously dilapidated warehouses to online businesses – returning the profits to shareholders through dividends. At today’s share price of 169p, the UK stock yields a 3.7% passive income for investors.

Of course, the commercial property sector is filled with competition that could drive up future property acquisition prices through bidding wars. Should management start overpaying for new locations, it could compromise the dividend stream in the future. But for now, Warehouse REIT seems to be ready to thrive in 2022 and beyond. At least, that’s what I think.

Zaven Boyrazian owns Anglo Pacific. The Motley Fool UK has recommended Anglo Pacific, Greencoat UK Wind, and Warehouse REIT. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

The Tesla (NASDAQ:TSLA) share price has had a bit of a bumpy ride over the past month. In fact, since the start of November, the US stock has fallen by around 20%. While the 12-month return is still an impressive 51%, it does beg a simple question. Now that Tesla is trading below $1,000, is it a buying opportunity for my portfolio? Let’s take a closer look.

A thriving electric vehicle business

Despite what the falling Tesla share price would suggest, the company continues to storm ahead. Fuel shortages and rising oil prices further increase consumer interest in owning an electric vehicle. Meanwhile, improvements in battery technology have drastically improved the range capabilities. And businesses seeking to lower their carbon footprint are starting to upgrade their vehicles fleets.

This has created quite a favourable environment for Tesla to thrive in. And looking at its latest third-quarter earnings, revenues continue to grow at impressive double-digit rates. Moreover, thanks to improvements in operational activities, profit margins are also getting wider.

Needless to say, this is all quite positive. And it seems to be the primary driver behind Tesla’s impressive share price momentum since the start of 2020. But if that’s the case, then why is the stock falling now?

Is Tesla’s share price too high?

With a CEO as influential as Elon Musk, it’s easy to understand how investors could be getting a bit too excited. As such, the valuation has reached some pretty absurd levels, with enormous expectations built into it. Even after the recent tumble, the stock still trades at a price-to-earnings ratio of over 300. And while the group may not be optimised for profits at the moment, its price-to-sales ratio still stands at a lofty 19 times.

While some investors may passionately disagree with that conclusion, it seems management doesn’t. Several board members have begun selling off some of their shares in multi-million-dollar deals. That includes Musk, who sold $8.8bn of Tesla shares in November. And just yesterday, he sold a further $906.5m of his stake in the business.

Generally, seeing insiders sell this much stock indicates they believe the shares are overvalued. But now that the price has fallen, should I consider adding this business to my portfolio?

Time to buy?

All things considered, Tesla continues to impress me with its progress over the years. However, even after the recent 20% drop, I still believe the Tesla share price is being inflated by over-optimistic investors.

Therefore, if the company starts to show any sign of a slowdown or potential weakness, the share price could be in for some serious volatility. Personally, I’m not interested in adding that risk to my portfolio. So, I’ll be keeping this company on my watchlist until a better price emerges.

Zaven Boyrazian has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

The Darktrace (LSE:DARK) share price hasn’t had the best run recently. In fact, since late October, the stock is down nearly 60%, falling to 393p today. That’s still higher than its April IPO closing price of 330p. But it does raise the question: after rising so high, why did it later collapse? And is this actually a buying opportunity for my portfolio? Let’s investigate what’s going on.

A future king in cybersecurity?

With the world becoming more dependent on technologies like cloud computing, it’s not surprising that the number of cyberattacks is on the rise. While that’s undoubtedly horrible news for most businesses and consumers, it has created a favourable environment for the cybersecurity industry. After all, the more threats, the more demand for such services.

Darktrace is a relatively new entrant to the sector. But it came in guns blazing with its AI-based platform. Using machine learning, this system automatically evolves each time it encounters a new threat. Once it understands how a piece of malware operates, it should quarantine the infected files and prevent any damage or exposure to sensitive data. In simple terms, it should behave like a self-teaching immune system for computers.

Looking at the figures published in its latest Annual General Meeting statement, this technology is proving to be popular. The firm now serves over 5,900 customers, 86% of them using two or more of its products. Consequently, revenue in its 2021 fiscal year (June to June) grew 41%, pushing its annualised revenue growth rate since 2018 to a staggering 51%.

Needless to say, that’s a lot of growth. And yet the Darktrace share price seems to disagree, given its downward trajectory. So, what’s going on?

The Darktrace share price versus uncertainty

There are undoubtedly numerous factors influencing the share price. However, the problems first started emerging after an analyst at the investment bank Peel Hunt released a pretty scathing report.

It claimed that the technology might not be as good as described on paper. In fact, the report stated that some customers described the AI-driven platform in negative terms. This could explain why the churn rate increased in FY21, with 7.7% of Darktrace clients deciding to terminate their relationship.

This is actually a risk I highlighted back in September. And combining bad news with Darktrace’s sky-high valuation is a recipe for a collapsing share price. But Peel Hunt placed its target at 473p. That’s around 20% higher than where the stock is trading today. Does this mean now is the time to buy?

Time to buy?

Today’s share price places Darktrace’s market capitalisation at around £2.7bn. That puts its price-to-sales ratio at approximately 12.7. This is certainly not cheap, but far more reasonable than previous levels. However, while this may be a buying opportunity, I’m concerned by comments surrounding its technology. After all, cybersecurity businesses live and die by their ability to protect customers’ data and systems.

If the company can’t meet the security requirements of its customers, then maintaining its current growth rates will be challenging over the long term. The future could be bright for the firm, but  I’m going to wait and see how Darktrace performs as we enter 2022 and won’t be buying for now.

Zaven Boyrazian has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.