Growth stocks have been punched in the face recently as worries about growth and hawkish Federal Reserve. For example, the Vanguard Growth ETF (VUG) has dropped by about 6% from its highest level this year. The closely-watched Ark Innovation Fund (ARKK) has crashed by more than 40% from its year-to-date high. This means that it is possible to get quality and cheap growth stocks at bargain prices.
Block
Block (NYSE: SQ), formerly known as Square is one of the biggest fintech companies in the world with a market capitalization of more than $100 billion. Yet, the Block square price has crashed by more than 42% from its highest level this year. It is trading at the lowest level since November 2020.
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The Square stock price has crashed as investors remain concerned about the company’s growth prospects. For one, analysts believe that the company’s cryptocurrency revenue will retreat in the coming months. It already did in the third quarter. Also, there are concerns that the volume of transactions will keep falling.
Still, there are several reasons to be excited about Block. First, Jack Dorsey has already resigned as the CEO of Twitter, meaning that he will focus fully on the company. Second, the company has a strong market share in its industry and it has more room to grow.
Third, from a technical perspective, the stock is in an oversold territory as shown by the Relative Strength Index (RSI) and the Stochastic Oscillator. This means that there is a possibility that the stock will bounce back.
Robinhood Markets
Robinhood Markets (NASDAQ: HOOD) stock price has underperformed significantly since going public. It has crashed by more than 77% from its all-time high, bringing its total market capitalization to about $16 billion. At its peak, Robinhood was valued at more than $30 billion.
The Robinhood stock price has crashed as investors raise questions about the company’s growth prospects. Besides, in the past few months, activity that exists in its platform has declined. This is evidenced by the relatively weak results. There are also concerns about the performance of cryptocurrencies, including popular options like Dogecoin.
There are three main reasons why the HOOD stock price is a good buy the more it drops. First, the company has a strong market share in the industry. Second, the stock has moved to the overbought level according to the Stochastic and RSI. Third, there is a likelihood that the volume of trading will increase in the coming quarters.
Coinbase Global
Coinbase Global (NASDAQ: COIN) stock price has crashed to the lowest level since October this year. It has fallen by more than 35% from the highest point this year. This performance has happened because of the overall correlation of the stock to cryptocurrencies. Indeed, Bitcoin and other cryptocurrencies have dropped substantially in the past few months.
Still, there is a likelihood that the Coinbase stock price will bounce back. It is a growth stock whose oscillators show that it is in the oversold level. It also has a strong market share in its industry.
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