Although it seems that we have reached some sort of near-term bottom, tech and growth sectors still see a ton of downward selling pressure during bearish sessions. Just two years ago, many of these stocks were the darlings of Wall Street. Now, a difficult to maneuver macroeconomic environment combined with fears of an impending recession, have multiples being slashed faster than a Hollywood horror movie.
When sentiment is this low, we must remind ourselves to try and be greedy when others are fearful. Sentiment for tech stocks are at rock bottom right now. I seriously advise against getting our information from FURUs on Twitter or Reddit. Remember that free information usually comes with an ulterior motive for most of these traders. So even though many on Twitter are calling for tech stocks to never return to the same price levels again, think logically about how the markets operate. When you do, you’ll realize the following stocks are trading at a bargain price.
CrowdStrike (NASDAQ:CROWD)
I’ve written about CrowdStrike before, and it’s only gotten cheaper since then. The cyber security company recently announced a blowout quarter as its earnings rose by 210% on a year over year basis. ARR or Annually Recurring Revenue is a metric used to gauge customers staying with the platform year after year. This came in higher than expected with a 61% year over year rise.
CrowdStrike is one of the leaders in the cybersecurity industry and its cloud-based security network utilizes artificial intelligence and machine learning to neutralize and predict threats. As the world moves towards Web3 and the Metaverse, we will need cybersecurity software more than ever before. Crowdstike is down nearly 50% from its 52-week high price of nearly $300 per share.
Asana (NYSE:ASAN)
Okay, I know. Asana shot way too high and I even wrote about it once in an article about stocks to short. But I believe it’s also overshot to the downside and is being punished in an environment where non profitable companies are not worth holding. Asana also reported its earnings recently and earnings and revenues came in higher than expected. But the company is burning money as it attempts to expand its foothold in the industry and grow its customer base. Asana is succeeding at this, and investors should be happy to see the strides the company is taking even though its stock price does not reflect this. For a high-growth company the stock is now trading with a price to sales ratio of below 10. That is an oversold stock that is being pressured down because of the market environment, while it is exceeding expectations everywhere else. Sometimes stocks just fall because the entire market is which results in good companies being dragged down and sold off. Asana is trading at a fraction of its 52-week high price of $145 per share, and since then the company has only grown larger and attracted more customers.
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