Investors love to be opportunistic. You can be sure the next time the market has a significant correction — or even an inevitable crash — that battle-tested investors won’t flinch at taking advantage of lower prices. What if I told you that a lot of promising growth stocks have already crashed…
Shares of Fastly (NYSE:FSLY), fuboTV (NYSE:FUBO), and Palantir Technologies (NYSE:PLTR) have all fallen at least 40% from their 52-week highs. These aren’t perfect stocks, but they’re definitely not broken. Let’s see why I think these are three investments are ripe for the picking in today’s market climate.
This next-gen content delivery network was rocking until the clock ran out on TikTok last year. Caught on the losing end of a trade war dispute between the U.S. and China late last year, Fastly lost a top account that was generating more than 10% of its revenue through the first nine months of last year — and growing quickly, to boot.
There is life after TikTok, even if Fastly stock has shed nearly 45% of its value since topping out in October. Growth will slow from last year’s 45% burst, but Fastly’s guidance calls for decent 29% to 32% top-line growth in 2021. A recent acquisition is helping pad revenue gains, and Fastly’s deficit will widen as it invests in new growth initiatives. This is far from a perfect company right now, but there’s a lot to like here. Its net retention rate and dollar-based net expansion rate are slipping, but still comfortably over 100%. Fastly is keeping its customers happy, and there’s no reason why the market believes that this is a little more than half the company it was five months ago.
We’re cutting the cord, and live-TV streaming services are there to fill the void that the leading streaming services can’t provide when it comes to live network programming. No one is growing faster than fuboTV in this niche, and it’s stepping on the accelerator. Pro forma revenue rose 71% in the third quarter, 98% in the fourth quarter, and fuboTV’s guidance calls for growth of 98% to 102% for the current quarter.
There are just 545,000 subscribers right now, but they’re a loyal and engaged lot of sports fans. Average revenue per user is up to $69.19 a month — up 17% over the past year — and that includes an industry-leading $8.47 a month in ad revenue. Why is this stock trading 49% below its December all-time high?
This isn’t the only game to watch here. A pair of recent acquisitions will lead to a fantasy sports platform for members this summer and a more ambitious online sportsbook offering by the end of the year. If you think fuboTV’s painting too rosy an outlook for 2021, keep in mind that…
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