After the initial pandemic shock in 2020, certain high-growth stocks performed well. Extremely well. Bolstered by extraordinarily low interest rates and a new crowd of “work-from-homers” (with newfound time to “invest”) it seemed the sky was the limit. Until it wasn’t. Flash forward to now, the market has fallen sharply this year (especially high-growth stocks), and there is no short supply of reasons to stay bearish. Very bearish. In this report, we share data on 50 high-growth stocks that have crashed, run through a list of compelling reasons (data points) to stay bearish, and then discuss the merits of three interesting high-growth stocks from the list that have crashed particularly hard, with a special focus on pandemic darling, Palantir (PLTR). We conclude with some important takeaways and our very strong opinion about investing in Palantir and investing in this market in general.
Cybersecurity Stock: Revenues Keep Growing Fast, Shares 35.2% Below ATH
This rapidly growing cybersecurity business announced earnings after the close on Tuesday. The results were better than the street’s already lofty expectations, plus the company raised forward guidance (both good things). This brief note is an update and follow up on our previous report, and a reminder to readers on how we feel about investing in this stock, at this time.
Big Data Stock: Massive Sales Growth, About to Turn EPS Profitable
This big data stock went public in late 2020. And after some incredible post-IPO gains in 2020-2021, the shares came crashing down as the high-growth pandemic bubble burst. However, the company’s massive revenues have continued to grow an incredible pace, it just announced impressive quarterly results last week, and it is about to turn EPS positive (a great thing in this environment). And critically important—there is still a lot more room to run (in terms of sales growth that will lead to massive profits in the relatively near future.
Cloud Monitoring Company: Lots of Long-Term Upside, On Sale
If you have the luxury of being a long-term investor, you have a distinct advantage and highly lucrative opportunity that is not available to others. Specifically, you can benefit from long-term compound growth (the eighth wonder of the world), particularly as it pertains to powerful secular trends. In this report, we review one such business (a SaaS application monitoring company) that will benefit from cloud migration and digitization secular trends over the long-term, despite the recent steep share price sell off (buying opportunity) so far this year.
The Trade Desk: 5 Top Growth Stocks To Crash Again Soon
The Trade Desk (TTD) reported strong results in its latest quarterly release on Tuesday. But despite the latest gains, the shares will likely crash again soon. In particular, high-growth stocks (like The Trade Desk) have rebounded hard since mid-June, but are still down dramatically year-to-date, and Wednesday’s newly released inflation numbers will likely embolden the fed in its fight against inflation. In this report, we review the ugly top-down environment for five top growth stocks that will likely crash again soon, then dig into the details on The Trade Desk in particular and then finally conclude with our strong opinion about investing in The Trade Desk and top growth stocks in general.
Attractive High-Growth SaaS Stock: Payroll and Human Resources
We purchased shares of this high-growth small-cap stock in our Disciplined Growth Portfolio in 2015 (when the share price was under $30 and the market cap was around $1.4 billion). It just announced another quarter of strong earnings on Friday, and the shares now trade at around $260 (and the market cap is over $14 billion). What’s more, we continue to like its exceptionally strong growth trajectory going forward (the shares have a lot more upside ahead). This report reviews the business and 10 things we like about it going forward.
If I Could Own Just One Stock
As a long-term investor, I believe in owning a prudently-diversified portfolio of many stocks. However, if I could own just one stock, I’d want it to be a leader in the important categories of revenue growth, dividend income and financial strength (including profitability, a strong balance sheet and an attractive valuation). Following its new quarterly earnings release this week, this report reviews Microsoft’s business, its strengths (in the categories listed above), the risk factors it currently faces and then concludes with my strong opinion on whether Microsoft would be “the one.”
Digital Turbine: Attractive If Acquired, Attractive If Not
The market has sold off hard this year, especially if you are a high-growth technology company. One name that has gotten hammered particularly hard is mobile growth platform, Digital Turbine (APPS). In this report, we give an update on the business, the opportunities, profitability, valuation (as an acquisition target and as a standalone company) and our opinion on investing.
Meta Platforms: Fervently Hated, Money-Printing Value Stock
Other than a Super Bowl watch party, most people hate commercials and advertisements of any kind. They are disruptive, often offensive and increasingly violate privacy. Nonetheless, Meta Platforms (formerly Facebook) continues to print and store massive piles of money it derives from advertising across its platforms, including Facebook, Instagram, Messenger, WhatsApp and others. And despite the fact that growth in traditional markets may be slowing, and its pivot to the Metaverse is wildly unproven, the low valuation (of this once growth now value stock) is hard to ignore. This report reviews the business, valuation, risks and concludes with our opinion on investing.
Shopify: Meme Stock, New Market Paradigm
We first purchased Shopify at ~$143 per share in August of 2018. It now trades at ~$333 per share. Not a bad return—until you realize the shares have fallen over 80% in the last 6 months! This report compares Shopify’s business fundamentals (including its business strategy, ongoing revenue growth and margins) to its current valuation, and then examines the question of whether Shopify CEO, Tobias Lütke, continues to imprudently push an easy-money, high-growth business strategy in an increasingly sober new market paradigm—now characterized by higher costs of capital and a starkly less friendly meme stock environment (yes—Shopify is a meme stock). We conclude with our opinion on who might want to invest—or if it’s simply time to sell and move on.
Roku: Despite Massive Sell Off, False Headwinds Still Exist
Roku (ROKU) shares are down 85%. And while some investors celebrate the bursting of what they believe was an obvious pandemic bubble stock, things could still get worse. For example, the Fed’s hawkishness is driving us into recession, Roku’s earnings are again negative and the shares remain highly shorted right along with many other now infamous “high-growth” stocks. In this report, we review Roku’s business, its growth opportunities, its valuation, the multitude of headwinds that many investors are now increasingly aware of (such as supply chain issues, competitive threats, slowing growth), and then conclude with our opinion on investing.
CrowdStrike: This “Ain’t” Their First Rodeo
CrowdStrike founder and CEO, George Kurtz, has founded and led multiple successful cybersecurity businesses, and he knows the drill. Specifically, CrowdStrike is a high-margin Software-as-a-Service company with highly attractive recurring revenues that continue to grow rapidly in a large (and expanding) total addressable market (cybersecurity). What’s more, despite the continuing rapid growth, the valuation has come down, thereby making the shares even more compelling to some investors. In this report we share our opinion on whether CrowdStrike is worth considering for investment at these levels (valuation), or if it’s just another overhyped growth stock that is being valued too much on a euphoric narrative and not enough on its underlying fundamentals.
This Steady Growth Juggernaut is a Gift from the Market
There is a lot to like about the highly-profitable business we review in this report, including its high margins, powerful revenue growth, large total addressable market opportunity, impressive history of dividend growth (10+ years) and its compelling valuation. The company helps consumers and small businesses make short work of their financial responsibilities and challenges. And the shares have absurdly lost nearly 50% of their value since November as they’ve gotten caught up in the recent market-wide high-growth selloff. Yet, yesterday’s earnings announcement makes clear this business is still quite healthy (they again exceeded expectations) and on track to do even better (perhaps dramatically so) in the years ahead.
Disciplined Growth Portfolio: 6 New Buys!
I don’t trade often (because I believe in long-term investing), but recent market dislocation has created some very attractive buying opportunities. Year-to-date, growth stocks have been hammered, and as counterintuitive as that may seem—that can often be the best time to buy. In this report, we review the new buys, the new “buy under” prices, and the aggregate portfolio details. has all the details.
Albemarle to Benefit from Inflation, EV Lithium Demand
The basic materials stock we review in this report has increased its dividend for 28-years in a row. It also has newfound growth opportunities related to dramatically increasing lithium demand and pricing (courtesy of exploding demand for lithium-based batteries in electric vehicles, for example). Not to mention, the basic materials sector can continue to be a highly attractive inflation hedge. In this report, we review the details and then conclude with our opinion on investing.
Micron: 25 Growth Stocks To Rip Higher
To the satisfaction of many prognosticators, hoards of “pandemic darling” stocks have now fallen more than 30%, 50% and even 70%. However, it’s worth noting that some of them actually have impressive businesses and now trade at dramatically more compelling valuation multiples—even after taking into consideration the risks created by the fed’s aggressive interest rate hike trajectory (to battle inflation) which could drive us into recession and decisively warrant discounted valuation multiples being assigned to these businesses still on track to achieve significantly higher future earnings. In this report, we highlight 25 examples, including a special focus on Micron (MU).
This Stock: 360 Degrees of Attractiveness
If you are looking for an investment opportunity that is attractive in every direction, you might want to consider this professional services consulting company. It’s classified in the information technology sector, but benefits handsomely from the massive opportunities that exist across the many compelling industries it serves. In this report, we review the company’s healthy growing dividend, share repurchases, massive cash flow, strong balance sheet, powerful earnings and revenue growth trajectories, and the attractive valuation for this very impressive business model.
This Attractive, High-Growth, Blue-Chip Stock Is On Sale
Now trading at only 6.4 times sales (down from over 12x in late 2021), but with an ongoing sales growth trajectory of nearly 20%, this CRM (customer relationship management) technology company has a lot of room to run (large total addressable market) and a highly defensible moat to its business. In this report, we review the business details and the risks, and then conclude with our opinion on investing (we currently own shares).
Nascent SaaS, Big Upside (Smart Battery Storage Solutions Company)
Traditional valuation metrics (such as price-to-forward-earnings, and even gross margins) are better suited for evaluating mature blue-chip businesses. On the other hand, such valuation metrics leave a lot to be desired when evaluating nascent innovators—especially those with appropriately shifting business strategies and backed by massive secular trends. If you are looking for a steady-eddy dividend stock, this article is not for you. However, if you are looking for an increasingly attractive opportunity that is trading at a large discount to its compelling long-term potential, then this stock is worth considering, especially after the recent share price decline. In this report, we review the business strategy, the market opportunity, the valuation and the risks, and then conclude with our opinion on investing.
Powerful Contrarian Growth: This Is No Meme Stock
There is little doubt that this business is growing rapidly with a massive total addressable market opportunity (i.e. it has a long runway for continued growth). However the company is not profitable, its shares continue to be diluted, and in a fairly short period of time the share price has gone from high-flying pandemic darling to now a poster child for stocks to avoid in a rising interest rate environment. In this report, we review a variety of big headwinds the business currently faces, we consider several critical attractive qualities, and then we conclude with our opinion on whether a contrarian investment currently makes sense.