A bull market is coming: 2 growth stocks are down 55% and 82%, buy now
The past year has been tough for investors, especially those with growth-focused portfolios. The Nasdaq Composite It has plunged deep into bear market territory, currently down 27%, and many individual growth stocks have suffered even larger losses. For example, shares Shopify (a store -3.71%) And the I am convicted (Goodbye. Yes -1.97%) 82% and 55%, respectively.
However, the Nasdaq has weathered the worst downturns in the past and has always rebounded from every bear market. This means that sooner or later another bull market will come and push the index to a new high. In the meantime, patient investors have the opportunity to buy quality stocks like Shopify and Adyen for sale.
Here’s what you should know about these two stores.
1. Shopify: Simplify omnichannel commerce
Shopify’s mission is to make commerce better. It provides software that helps merchants manage sales across physical and digital channels—think online marketplaces, social media, and direct-to-consumer (D2C) websites—and provides complementary services such as payment processing, discount shipping, and financing. This makes Shopify a one-stop shop for small business owners, and this value proposition has generated strong demand.
In fact, Shopify is the most popular e-commerce software platform that is measured by market presence and user satisfaction, according to a recent G2 Grid report, and it powered 10.3% of e-commerce sales in the US last year, making it a niche. second place behind Amazon.
Unfortunately, Shopify struggled this year. Consumers have cut discretionary spending in response to rising inflation, and online shopping has faded as the social effects of the pandemic fade. As a result, Shopify saw revenue rise just 16% in the second quarter, and posted a GAAP loss of $0.95 per diluted share.
On the bright side, the company continued to gain market share in both online and offline commerce in the US during the first half of the year, and the long-term investment thesis remains largely intact. Global e-commerce sales are expected to exceed $7 trillion by 2025, leaving a long growth treadmill, and Shopify is implementing a robust growth strategy.
For example, Shopify Plus – a customizable commerce platform for large organizations – has helped Shopify win companies like Netflix And the Figs. In fact, Shopify Plus supports over 14,000 brands, and management is working to increase that number through product innovation. It recently introduced a new AI-powered marketing program for Plus merchants, and added new B2B commerce tools to the platform, which means organizations can sell B2B and D2C from the same location. This significantly expands Shopify’s addressable market, with B2B e-commerce sales expected to exceed $33 trillion by 2030, according to Grand View Research.
In the short term, Shopify may continue to struggle with rising inflation. But over the long term, its leadership in e-commerce software should yield solid financial results, which means impatient investors are well-positioned to see returns hit the market when the next bull market rolls around. This is why this growth stock is worth buying.
2. Adyen: Simplify digital payments
Adyen is a European company that simplifies digital payments. Specifically, its platform integrates payment processing (authorization), acquisition (settlement), and risk management services, making it easier for merchants to accept all types of digital payments – credit and debit cards, digital wallets, buy now, pay later – via online storefronts. and unconnected. By unifying transaction data from both physical and digital sales channels, Adyen can also provide businesses with AI-powered insights that boost revenue and fight fraud.
On this note, Adyen has won many outstanding customers, including the e-commerce market Etsyrunning platform spotifyMobility service provider Uberand fast food chain McDonald’s. Most importantly, the company has delivered solid financial results on a consistent basis, driven by a secular shift towards digital payments.
In the first half of 2022, revenue increased 55% year-over-year to €3.9 billion, driven by particularly strong growth in North America and the Asia Pacific region, and net income rose 38% to €282 million.
Investors have good reason to be optimistic. Adyen is well positioned to benefit as online shopping continues to drive growth in digital payments, but the company is also gaining meaningful momentum in physical stores. Point of Sale (POS) volume increased by 97% during the first half of 2022, and Adyen recently compounded this success with the launch of its own POS terminals.
It’s also worth noting that Adyen operates its own private banking infrastructure across the US and Europe, which means it can offer efficient services such as financing, card issuance and deposit accounts to customers. This gives it a small advantage over fintech companies like PayPal Collectibles and Stripe, and they are creating a growth opportunity beyond digital payments.
For all of these reasons, this growth stock is worth buying today.
John Mackie, CEO of Whole Foods Market, an Amazon company, is a member of The Motley Fool’s Board of Directors. Trevor Jennewine has positions at Amazon, Etsy, PayPal Holdings, and Shopify. Motley Fool has and recommends positions at Adyen NV, Amazon, Etsy, Netflix, PayPal Holdings, Shopify and Spotify Technology. Motley Fool recommends Adyen and Uber Technologies and recommends the following options: long January 2023 calls worth $1140 on Shopify and short January 2023 calls worth $1160 on Shopify. Motley Fool has a disclosure policy.