4 plummeting growth stocks you might want to collect

Growth stocks have had a difficult period in the past 12 months. For example, the Ark Innovation Fund has crashed by more than 56%. A quick look at some of the best-known momentum stocks shows that they have plummeted by more than 50% from their highs. Here are some of the best growth stocks that you might want to collect.

PayPal

PayPal (NASDAQ: PYPL) stock price has been in a strong bearish trend in the past few months. The stock has crashed by more than 60% from its all-time high and is trading at the lowest level since May 2020. As a result, its market cap has fallen from more than $350 billion to about $146 billion.

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The situation worsened this week as the company published weak earnings. Still, there is a possibility that the PayPal stock price will bounce back. While its earnings were a bit weak, beneath the surface, it is a great company. 

For example, it has more than 426 million users and is a highly profitable company. Also, it has some growth levers in areas like buy now, pay later, and even cryptocurrencies. 

SoFi Technologies

SoFi (NASDAQ: SOFI) is another growth stock that has retreated sharply lately. Like PayPal, SoFi stock price has crashed by over 58% from its all-time high. Its market cap has crashed to more than $9 billion.

There are several reasons why the shares have declined. For example, analysts are concerned about the company’s brokerage service after the weak results by Robinhood. Also, there are signs that its other lending business segments are slowing.

Still, SoFi is a good investment because of how diversified its business is. For example, its lending business will likely benefit as interest rates rise. It is also a good acquisition target by a company like PayPal or Block that want to create a super app.

Spotify

Spotify (NYSE: SPOT) has been in the spotlight lately as the Joe Rogan scandal has continued. The Spotify stock price is trading at $159, which is 58% below its all-time high. This performance gives it a market cap of just $30 billion.

In addition to the scandal, the company published weak earnings this week. Still, Spotify is one of the best growth stocks for three reasons. First, it has more than 400 million users globally, making it a major player in the industry. 

Second, it has low churn among paying subscribers. Third, the current dip is a good opportunity comparable to when Facebook went through the Cambridge Analytica scandal.

Twilio

Twilio (NYSE: TWLO) is a company that most people don’t know about. Yet billions of people use its services every day. It serves more than 15,000 companies globally. For example, whenever you receive a message from Lyft, Chime, and Crypto.com, it usually comes from Twilio.

Twilio stock price has crashed by over 60% from its all-time high. This drop is mostly because investors believe that its growth has slowed and that its Segment and Sendgrid acquisitions are not working well. Still, there is a likelihood that the stock will bounce back because of the company’s cash flows and the fact that it has the potential to upsell its products.

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