The Nasdaq Bear Market: 5 Unique Growth Stocks You’ll Regret Not Buying on the Dip
In the past year, investors have been inaccurately reminded that stocks can go down just as easily as they can go up. After an almost unstoppable bull run in 2021, all three major US stock indices have fallen to a Alcohol market last year. Focus on growth NASDAQ Composite (^ IXIC 0.95%) It was hardest hit, with a 38% drop from peak to trough.
While big dips can be intimidating, especially for new investors, bear markets have consistently proven to be sure-fire buying opportunities for the patient. No matter how poorly the Nasdaq Composite had previously performed during a market correction, crash or downturn, every pullback was eventually (keyword!) taken into the back seat by a bull market rally.
The current bear market is an especially perfect time to go shopping for game-changing businesses that are taking a beating from pessimism. Here are five that are really unique growth stocks You will regret not buying when the Nasdaq Bear Market drops.
The first unique growth stock to be bought as the Nasdaq falls FAANG shares the alphabet (GOOGL 1.90%) (The Google 1.56%). Alphabet is the parent company of online search engine Google, streaming platform YouTube, and autonomous car company Waymo, among other subsidiaries.
Alphabet is still very strong thanks to Google. Over the past four years, Google’s global share of Internet searches has fluctuated between 91% and 93%, based on GlobalStats data. This true monopoly should have exceptional ad pricing power during long-term economic expansions and clearly would be the best option for advertisers looking to target their message.
But what Alphabet does with all of the operating cash flow generated by Google may be the most exciting. At least part of the capital is invested in Google Cloud, which has grown into the world’s third largest provider of cloud infrastructure services by market share. Although Google Cloud is a money-losing segment at the moment, the margins associated with cloud services are usually much higher than the margins for advertising. Given that enterprise cloud spending is still in its infancy, it wouldn’t be surprising to see Google Cloud finally become Alphabet’s primary cash flow driver.
Alphabet is also making waves on YouTubeIt is now the second most visited social networking site in the world. YouTube Short – Short videos under 60 seconds – 30 billion views Daily Worldwide, as of June 2022, and the company is working on ways to improve monetization of this tool.
With so many ways to grow, Alphabet is An absolute steal at less than $100 per share.
Another unique growth stock you’ll be pushing yourself not to buy during a Nasdaq bear market is the online services market Pfeiffer International (FVRR 7.07%). Although many signs suggest that the US will enter a recession within the next 12 months, patient investors are getting a deal with Fiverr.
one side It allows Fiverr to stand out from other online freelance marketplaces How tasks are displayed. Most sites list freelance jobs on an hourly rate. On Fiverr, freelancers offer their services as a package deal. This pricing transparency appears to have won over buyers, with spending per buyer and the total number of buyers increasing steadily, even as the US economy weakens in the first half of 2022.
Additionally, Fiverr’s take rate is It is unparalleled among online service marketplaces. The takeover rate is the percentage of revenue from each deal negotiated on its platform that Fiverr has to keep. During the quarter ending in September, Fiverr’s take rate was 30%. It’s been able to grow its freelancer and buyer base with a take rate nearly twice that of its competitors, which should ultimately translate to superior earnings growth.
Fiverr should be a clear winner in the long run as companies embrace a hybrid work environment post-pandemic.
The third unique growth stock you’ll regret not collecting during the Nasdaq bear market is the cloud-based lending platform. Upstart Holding (UPST 10.44%). Although rapidly rising interest rates limit growth prospects in the near term, the innovative Upstart platform has the potential to upend the massive lending industry.
For decades, the loan screening process has generally been slow and expensive. Upstart aims to change this by relying on artificial intelligence (AI) And machine learning to quickly analyze loans. During the third quarter, a record 75% of loans are processed by Upstart Approved and fully automated. For the 83 participating lenders, this means significant cost savings.
Perhaps most importantly, Upstart’s AI-driven platform is expanding lending to people who would not normally have the chance to be approved by the traditional vetting process. Although junior approvals have a lower average credit score than the traditional process, the late payment rates between the two were similar. This means that an upstart can bring in new customers to banks and credit unions without deteriorating the quality of their loan portfolios.
What’s more, upstart has only recently begun branch into columns With the possibility of loan origination remarkable. For years, the AI lending platform has been used almost exclusively for personal loans. Last year, I started taking out auto loans and small business loans. On a combined basis, auto loans and small business loans account for $1.43 trillion in annual loan assets, which is nearly 10 times the original annual value of personal loans ($146 billion).
The fourth premium growth stock you’ll regret not getting your hands on during the Nasdaq bear market is the data mining specialist Palantir Technologies (PLTR 4.28%). Although companies with excellent valuations have been beaten by Wall Street, Palantir appears to have paid its penance.
And as I saidWhat helps Palantir stand out is the fact that no other company can replicate what it does at scale. Gotham’s AI-powered platform helps government agencies plan missions and collect data. Meanwhile, the company’s Foundry platform works with large companies to help them streamline their operations by understanding big data.
For years, Gotham has been the primary driver of Blantyre’s growth. The company’s government revenue recently exceeded $1 billion on a 12-month (TTM) basis, with contracts signed by Gotham often lasting four or five years. But there is, admittedly, a cap on this segment. While America’s steadily increasing defense budget is music to Palantir’s ears, Gotham can never be used by some governments (like China).
Looking back on the past years, Foundry has a path to becoming Palantir’s primary platform. Through the end of the third quarter, Palantir’s commercial customers (calculated on a TTM basis) nearly doubled to 228 from 115. Not surprisingly, U.S. commercial revenue growth has been in triple digits in four of the past five quarters. We’re seeing only the tip of the iceberg of what should become Palantir’s stellar operating segment.
The fifth unique growth stock you will regret not buying on the NASDAQ when a bear market is down is the Survival and Hosting platform Airbnb (ABNB) 5.96%). While the pandemic has been a massive headwind for Airbnb, the worst appears to be over.
Airbnb has long proven that the online accommodation and hosting market is not a fad. Since 2016, we’ve seen the number of bookings (which includes booked nights and experiences) grow from 52 million to The annual run rate is about 400 million In 2022. Keep in mind that’s with just over 4 million global hosts. As more hosts join the platform, Airbnb should be able to maintain a double-digit growth rate.
But even more impressive than the overall increase in total bookings is Strength in long term stays (28 days or more). Just as Fiverr is benefiting from a hybrid business model in the wake of the pandemic, Airbnb is seeing strength with an influx of remote workers into new locations. Long-term stays can be a high-margin, sustainable growth channel for Airbnb.
Finally, look for a company’s experiences division to become an increasingly important part of its revenue mix. Currently, Experiences includes partnerships with local experts who lead travelers on adventures. However, I expect that segment will eventually expand the world of its partnerships (for example, food and transportation) so that it can get a bigger slice of the $8 trillion that is spent on travel each year.