The Nasdaq Bear Market: 5 Amazing Growth Stocks You’ll Regret Not Buying on the Dip

Things don’t always go as planned when investing in the stock market. While 2021 has investors thinking that stocks are only going up, 2022 provided a quick reminder that stocks can also go down. When the closing bell sounded on December 31, 2022, all major US stock indices had their worst year since 2008.

growth stocks I was particularly exposed last year. growth based NASDAQ Composite (^ IXIC 0.71%) It ended 2022 down 33% and suffered a maximum drop of 38% from its November 2021 high.

But on Wall Street, massive declines provide equally massive opportunities for long-term investors to pounce. Although we will not know ahead of time when bear markets What will happen or how sharp the decline will be We know that broad market indices, including the Nasdaq Composite, tend to rise over long periods. This makes every percentage drop double-digit a buying opportunity.

Here are five amazing growth stocks you’ll regret not buying when the Nasdaq bear market plummeted.

Teladoc Health

The first incredible growth stock to be bought as the Nasdaq falls is telemedicine giant Teladoc Health (TDOC 3.42%). Despite overpaying significantly for its acquisition of applied health signaling company Livongo Health in 2020 and making two major writedowns in the past year, the future looks bright for this beloved pandemic.

The first thing to understand healthcare stock Is that they are, excuse me, somewhat immune from the economic downturn. People don’t stop getting sick just because inflation is high or the US economy is weak. This consistency in demand for prescription drugs, medical devices, and healthcare services is one reason Teladoc can expect predictable revenue year after year.

What makes Teladoc so special is the role it plays in transforming personal care. When appropriate, virtual visits are more convenient for patients, and they provide clinicians with easier access to critical data of their chronically ill patients. The end result of this ease of access should be improved patient outcomes and reduced expenses for health insurers. It’s a win for the entire Healthcare series.

In 2023, the biggest catalyst for Teladoc Health is simply that Putting its one-time expenses related to its acquisition of Livongo in the rearview mirror. With ample cross-selling opportunities and ample cost-saving potential, Teladoc’s bottom line could be a pleasant surprise in the new year.

Palo Alto Networks

The second amazing growth stock that you will regret not getting during the Nasdaq bear market crash is Cyber ​​security inventory Palo Alto Networks (Bano 1.65%). Although growing concerns about a U.S. recession have weighed on Palo Alto’s share price recently, the company is offering more than enough tailwinds to outperform the broader market.

Similar to Teladoc, one of Palo Alto’s founding tailwinds is the evolution of cybersecurity into a core necessity industry. No matter how well or poorly the US economy is doing, hackers and bots don’t take time off from trying to steal sensitive information. This leads to a steady demand for security solutions in any economic environment.

The conspiracy surrounding Palo Alto Networks has to do with the four-year (and counting) transformation of the Promote cloud-based software-as-a-service (SaaS) solutions. Although the company still sells physical firewall solutions, Palo Alto’s management team understands that SaaS solutions provide higher margins, more stable sales, and reduce the potential for customer inflated.

Additionally, Palo Alto has done an excellent job of using its proven acquisitions to its advantage. The small business acquisition helped the company expand its service portfolio and broaden cross-selling opportunities. Look for Palo Alto Networks to maintain a 20% growth rate for the foreseeable future.

Airbnb

The third amazing growth stock you will regret not buying given the Nasdaq is down is the accommodation and hosting platform Airbnb (ABNB 1.91%). Although the COVID-19 pandemic has completely shaken up Airbnb’s travel-based hosting-based operating model for a while, the company’s key performance metrics are undoubtedly headed in the right direction.

First of all, the annual bookings trajectory was phenomenal. During the first nine months of 2022, Airbnb averaged nearly 100 million nights and experiences booked per quarter, which equates to an annual run rate of about 400 million. By comparison, it totaled 115 million bookings in the whole of 2017. And in five years, Airbnb has nearly quadrupled its bookings, clearly showing that its operating model is not a fad.

Perhaps the most exciting aspect of the Airbnb model is long-term stays (defined as stays of at least 28 days). This has been The company’s fastest growing segment, and appears to be a reflection of the permanently changing job market in the wake of the pandemic. With more people working remotely than ever before, Airbnb can be especially attractive to people who aren’t tied to a single location.

Airbnb too Just scratching the surface in the experiences section. The travel industry is an $8 trillion opportunity, and it seems logical that Airbnb would eventually partner with food and transportation companies to get a bigger piece of this $8 trillion pie.

barking

A fourth stellar growth stock you’ll regret not picking up during a Nasdaq bear market downturn is a dog-focused products and services company barking (Bark -10.23%). Although nearly every company (including Bark) that went public in 2020 or 2021 via a special purpose acquisition company (SPAC) has taken a beating, Bark offers clear competitive edges that should allow it to stand out in 2023. (and beyond).

First of all, the pet industry has proven to be approx Recession resistance is like any industry on the planet. Data from the American Pet Products Association (APPA) shows that it has been more than a quarter century since annual spending on furry, gill, feather, and scaly “family members” in the United States declined year over year. To boot, more American households own pets now than at any time since APPA began surveying households in 1988.

The factor that makes the park such an interesting investment is Its direct focus is on the consumer. Although it has its products in tens of thousands of brick-and-mortar stores, nearly 90% of its revenue comes from its 2.24 million subscribed customers. The beauty of subscription-paid operating models is that they help reduce overhead costs by making inventory needs transparent. For Park, that should mean driving profitability over the next 12 to 24 months.

Another selling point for Bark is the add-on sales. The company introduced three new product/service offerings during the pandemic, all of which can boost average order value and increase operating margins. In particular, Bark Bright, the company’s dental service offering, was delivering triple-digit sales growth.

Redfin

The fifth and final growth stock you’ll regret not buying in a bearish Nasdaq is a technology-driven real estate company Redfin (RDFN 0.33%). Although real estate has been hit by the highest mortgage rates in over a decade, Redfin has advantages that make it a popular choice for sellers in a challenging environment.

For example, traditional real estate agencies charge anywhere from 2.5% to 3% of the home’s sale price to act as agents for buyers and sellers. while, Redfin fees are only 1% or 1.5%, depending on how much previous business has been done with the company. Based on typical US homes selling for $350,000 in the four weeks ending January 1, 2023, Redfin could help save up to $7,000 in costs. This is not a reckless change in the weak US economy.

Moreover, Redfin offers a variety of customization services that traditional real estate companies can rarely match. This includes a concierge service that is tasked with helping sellers increase the value of their homes. These value-added services are differentiators and drivers of margin for the company.

As a final note, Redfin recently announced that it will be Stop online purchases – the part that bought houses for money, which were to be sold later at a profit. Closing this segment will reduce the company’s expenses and free up cash on its balance sheet.

Like Bark, Redfin could be paid for recurring profitability within the next 24 months.