Plenty of our favorite companies have seen their stock prices tumble as tech stocks seem to be the target of the latest sector rotation. Of course, growth investors have a long-term outlook for these companies, and valuations today are rarely indicative of valuations in the future. Take fintech favorite Square (NYSE:SQ). Nobody really doubts the potential that this company has especially as it continues to report impressive growth in each subsequent quarter. Still, shares are down about 25% over the past month and the stock has shown little sign of finding any support.
Here are two other stocks that have been hammered by the markets that could be long-term winners from today’s prices.
Robinhood ($16.58|1.66%): Oh boy, Robinhood had one of the most high profile IPOs of the past year, and yet shares are now trading at all-time lows. One optimistic sign that growth investors have had is that Cathie Wood of Ark Invest continues to load up on Robinhood even as it continues to fall. So what does Wood see in Robinhood that the rest of the market does not? Robinhood has a strong name brand, even if that reputation was tarnished during the GameStop and Reddit event earlier in the year. On a tech basis, Robinhood remains one of the easier platforms to use to begin trading with. Its integration of popular cryptocurrencies has certainly helped bolster its usage amongst millennials and other younger investors. Persistent rumors of adding popular retail tokens like Shiba Inu Token for trading can only help its cause among those who remain loyal to the platform. Still, its revenues have been inconsistent and rely heavily on crypto trading fees. The stock is trading well below its 52-week high price of $85.00 per share and has a price to sales ratio of less than 10. The future of trading is online and on mobile phones, and Robinhood isn’t a bad play for a rebound if you can wait a couple of years.
Sea Limited (NYSE:SE): I have written about Sea Limited before and it is one of my favorite stocks out of Asia. Currently, the stock is mired in the tech company sell off and has fallen by 33% over the past month, down from it's all-time high price of $372.70. Is this sell off justified? Of course not. Only for investors who believe that valuations today should be representative of what they will be in the future, which is a very short-term way to look at the stock market. Sea relies on a number of different segments to bolster its company including Shopee for eCommerce, Garena for gaming, and Shopee Pay for payments. As much as Sea has grown, it is still a young company and it will have its growing pains. It is far from profitable, but it is reinvesting into its platforms that I believe will become a multi-headed monster in the future in the same vein as Tencent and AliBaba (NYSE:BABA). Scoop some shares of Sea Limited up now before everyone else does!