Top 3 most oversold Nasdaq 100 blue-chip stocks

The Nasdaq 100 index has struggled this year. It has already crashed by more than 11% from its highest level in 2022 as investors worry about the rising interest rates and weak earnings. Indeed, most of its constituent companies are in the red year-to-date. So, here are the worst-performing stocks in the index this year.

Moderna

Moderna (NASDAQ: MRNA) stock price has dived by almost 37% year-to-date as investors worry about the company’s growth prospects. Its stock has crashed from almost $500 to about $160. 

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The main concern is that the company’s revenue growth will slow since most people have already gotten vaccinated. Also, the company generates most of its revenue from its Covid vaccine since the other drugs and vaccines are in the pipeline.

At the same time, the fact that the Omicron variant is not as severe as the previous variants mean that the number of people who will need a booster shot is a bit low. Most importantly, the company’s insiders have been selling shares. 

Still, the average estimate of the Moderna stock price is bullish. Analysts expect that the stock will rise to $266, which is a substantial increase from the current level of $160.

PayPal

PayPal (NASDAQ: PYPL) stock has crashed by 35.62% year-to-date, making it the second-worst performer in the Nasdaq 100 index. It has fallen by more than 50% from its highest level in 2021 and is trading at the lowest level since May 4 last year.

PayPal has declined because of several reasons. The most important one is that the company is lacking organic growth as evidenced in its most recent results. The results showed that the company’s total users grew at a slower pace to 426 million.

The other reason is that investors have exited growth stocks, especially those in the fintech sector. Indeed, other companies like Block and Affirm have also retreated. There is a likelihood that PayPal stock price will bounce back in the long term.

Meta Platforms

Meta Platform (NASDAQ: FB) stock price has declined by more than 33% year-to-date. Most of this decline happened last week when the company published weak earnings. The results showed that the company lost users in the fourth quarter. It is also facing strong competition from the likes of TikTok and Snap. 

Most importantly, Meta lamented about the impact of Apple’s upgrade on its ad business. Still, FB is still a strong player in the social media industry and there is a likelihood that the stock price will rebound in the long term.

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