Unless you were a short seller or had a large percentage of your portfolio tied to energy stocks last year, there’s a good chance you could be a victim of the worst returns in major US stock indexes since 2008.
Although all three major indexes entered the Alcohol market Last year, it was NASDAQ Composite (^ IXIC 2.66%), with its emphasis on developing arrows, which really took it by the chin. The Nasdaq lost 33% of its value in 2022 and lost as much as 38% on a peak to trough basis after its November 2021 high.
While bear markets are known to test investor resolve, historically it is a smart time to put your money to work. Since every bear market throughout history has been pushed aside by a bull market, buying quality work at a discount can make a lot of sense.
What follows are a staggering five growth stocks It’s time to pick the ones you’ll regret not buying during the Nasdaq bear market crash.
The first sure growth stock you will play if you don’t buy during a Nasdaq bear market is e-commerce giant Amazon (AMZN 3.81%). Although its world-leading online marketplace is likely to face challenges as interest rates rise and the economy weakens, the important thing is that its exponentially higher-margin segments Growing at a frantic pace.
Last year, eMarketer predicted that Amazon would account for just 40% of all online retail sales in the United States. While its dominance in e-commerce is unmatched, retail sales produce very slim operating margins.
Most important to Amazon was the more than 200 million Prime members who have signed up worldwide as of April 2021. Subscription revenue is close to $36 billion in annual run rate sales and leads to more attractive profit margins than online retail. .
Even more important is the growth of the cloud infrastructure services segment, Amazon Web Services (AWS). We’re still in the relatively early stages of cloud services growth, and AWS has amassed nearly a third of the global market share. Although it accounts for nearly a sixth of Amazon’s net sales, AWS generates most of the company’s operating income.
During the 2000s, investors willingly paid an average of 30 times year-end cash flow to own shares of Amazon. You can buy shares now for less than 10 times Wall Street’s projected cash flow for the company in 2024.
The second no-brainer growth stock you’ll regret not buying during a Nasdaq bear market is Cyber security inventory Octa (OKTA 1.52%). Despite the high costs associated with the Auth0 acquisition weighing on its bottom line, Okta has a number of ongoing catalysts that make its significant downturn an interesting buying opportunity for impatient investors.
First of all, cyber security has steadily evolved into an industry of essentials over the past two decades. Before the pandemic, companies were shifting their data online to the cloud. In the aftermath of the pandemic, this shift has accelerated. Since hackers don’t take time off from trying to steal sensitive information, cyber security is essential in any economy.
On a more company-specific basis, Okta’s cloud-native identity verification solutions stand out for their use of artificial intelligence (AI) and machine learning. Relying on artificial intelligence allows the Okta platform to become more efficient over time in identifying and responding to potential threats.
What we’ve seen from Okta’s operating results is that companies are willing to pay for this premium protection, as the company’s subscription builds up An expansion of 21% in the third quarter from the same period a year earlier to $2.85 billion By the end of October.
Moreover, Okta should benefit from lower losses in fiscal 2024 (which includes most of calendar year 2023) as Auth0 integration issues are put in the rearview mirror and the company begins to stretch its legs into overseas markets.
The third amazing growth stock you’ll regret not picking up during the Nasdaq swoon is China’s online retailer JD.com (Dinar 1.70%). While China’s strategy to mitigate COVID-19 has severely affected its economy over the past three years, the latest change should open the door and allow fast-growing JD.com to shine.
This “last change” I’m referring to is China abandons its controversial ‘zero Covid’ strategy. Although the next two months may prove challenging as its citizens build up a vaccine-based or natural immunity against COVID, the move will eventually allow economic activity to flourish again.
JD.com is the No. 2 online retailer in China, behind only JD.com Ali Baba. But while the Alibaba platform relies mostly on third-party marketplace services, JD.com was built as a direct-to-consumer model, similar to Amazon. Because JD.com controls its own inventory and logistics, and relies minimally on third-party marketplace services, it is able to Better manage your expenses and pulling levers to increase operating cash flow.
And just like Amazon, JD has it Growing auxiliary slides Which offers higher margins than traditional e-commerce. The company’s logistics division grew 39% in the September quarter compared to the same period in 2021 — and that doesn’t even take into account revenue from the local on-demand delivery service Dada. Between JD’s traditional online retail segment, higher-margin logistics and JD Health’s operations, sustained double-digit sales and profit growth is a real possibility.
The fourth super-growth stock you will regret not buying during the Nasdaq decline is the United States marijuana stocks Cannabis trolling (TCNNF -0.29%). Although cannabis legalization and banking reform efforts have failed on Capitol Hill for years, nationwide legislation has proven to be more than enough to allow Trulieve to rush into the profits column.
One of the most interesting aspects of this company was the way it expanded. While most multi-state operators have entered anywhere from ten to twenty legal states, Trulieve Cannabis has spent most of its efforts satiating medical marijuana in Florida. As of the end of November, there were 122 of the 180 dispensaries in the Sunshine State. For context, these 122 dispensaries make up nearly a quarter of all marijuana stores in the state.
Why Florida? First of all, the state is on track to become the third largest cannabis market by sales in 2024. There is also a high probability that recreational cannabis will be on the ballot in Florida next year.
But the big advantage of owning one of the 22 licenses to sell marijuana in Florida is that holders can open as many dispensaries as they want. Country saturation kept marketing costs down while helping the company get published 19 consecutive quarters of adjusted earnings.
Investors should see the company’s acquisition of Harvest Health & Recreation begin to pay dividends, too. The leading cannabis retailer in Arizona was Harvest Health, which began allowing the sale of weed intended for adults two years ago. This acquisition gave Trulieve the foundation to strengthen its presence in the Mid-Atlantic region of the United States
The last amazing growth stock you will regret missing during the Nasdaq bear market is Social networking platform pinterest (pins -0.64%). Despite advertisers trimming their budgets amid near-term economic uncertainty, Pinterest has proven that its clear competitive advantages can still lift its stock.
Skeptics have focused a lot on the company’s flattening/shrinking Monthly Active Users (MAUs) since March 2021. Regardless of the fact that the long-term MAU trend is still pointing up, the real story has to be that Pinterest had no problem monetizing its 445 million MAUs . Even in a challenging advertising environment, the global average revenue per user increased by 11% in the third quarter. This is clear evidence that merchants are willing to pay to get their message in front of Pinterest’s army of potential shoppers.
Another reason Pinterest makes for a guaranteed buy is its operating model. Rather than having to rely on data trackers that consumers can now opt out of, Pinterest is based on the premise that users will freely and willingly share what interests them. The fully pinned canvas concept allows Pinterest to serve up data that merchants can use to target users.
finally, Don’t overlook Pinterest’s monetary status. As of the end of September, he had approximately $2.67 billion in cash, cash equivalents, and marketable securities. This is more than enough capital to keep innovating while facing a challenging economy.