Nasdaq Bear Market: 5 Staggering Growth Stocks You’ll Regret Not Buying In The Dip

Professional and everyday investors have taken their lumps this year. After a relatively quiet 2021, each of the three major US stock indexes plunged by a bear market sometime in 2022. Focused growth Nasdaq Composite (^ IXIC -0.97%) it is the index that has fared worst of all, with a maximum drop of 38% from its all-time high.

When examined over a very short period of time, bear markets can be disconcerting and test the resolve of new and incumbent investors. But when that lens is extended from months or a year to decades, it becomes clear that bear markets represent once-in-a-decade opportunities for high-quality stocks at a discount.

The 2022 Nasdaq bear market is an ideal time to buy growth stocks they were unfairly hit by bad market sentiment. What follows are five amazing growth stocks you’ll regret not buying during the Nasdaq bear market crash.

CrowdStrike Entries

The first investors in impressive growth stocks that would be smart to take during the Nasdaq bear market crash is the end user cybersecurity company CrowdStrike Entries (CRWD -3.04%). Although bear markets tend to weigh on higher-valued stocks, CrowdStrike has proven itself worthy of the premium investors have placed on the company.

The key to CrowdStrike’s success is its cloud-native Falcon security platform. Falcon monitors trillions of events weekly and relies on artificial intelligence (AI) to become more efficient at recognizing and responding to potential threats over time. Although CrowdStrike solutions are not the cheapest, their gross retention rate among existing customers has steadily climbed to over 98%.

What investors should really appreciate is the adjusted underwriting gross margin of nearly 80% that CrowdStrike offers. While it hasn’t had a problem signing up new subscribers (450 total subscribers to over 21,100 subscribers in less than six years), it’s the company’s ability to encourage existing customers to buy additional services that really stands out. In the most recent quarter, 60% of subscribers purchased five or more cloud module subscriptions. Less than six years ago, less than 10% of their subscribers had four or more cloud module subscriptions. This explains how CrowdStrike’s earnings growth can easily outpace its rapid sales growth for the foreseeable future.

One last thing to keep in mind is that cybersecurity is a basic necessity service for companies of all sizes with an online presence and in any economic environment.

child

A second attractive growth stock that is ripe for the picking during the Nasdaq bear market pullback is China. electric vehicle (EV) maker child (INFANT -2.36%). Despite dealing with historic supply chain headwinds related to the COVID-19 pandemic, Nio is well positioned to become a disruptor to the automotive industry.

Innovation is the engine of Nio in the world’s leading automotive market. This is a company that has been introducing at least one new EV every year. This year, two sedans rolled off its production line for the first time, with deliveries of the ET7 and ET5 beginning in March and September, respectively. In November, Nio delivered an all-time monthly record of 14,178 EVs, of which 6,175 were its premium electric sedans. With the top-tier battery options in these sedans offering approximately 621 miles of range, Nio EVs can take on even established/legacy gamers.

But it’s not just traditional innovation that’s driving growth. I have praised Nio numerous times by the introduction of Battery as a Service (BaaS) subscription in August 2020. With BaaS, Nio buyers receive a discount on the purchase price of their vehicle and have the opportunity to charge, exchange and upgrade their batteries at the future. As for Nio, it ensures early buyer loyalty and generates high-margin monthly subscription revenue.

By 2035, more than half of all new vehicles in China are expected to run on alternative energy. That gives Nio a long way to increase its market share.

limited sea

For investors with a high tolerance for risk and volatility, based in Singapore limited sea (I KNOW -12.06%) It’s the amazing growth stock you’ll be kicking yourself for not buying during the Nasdaq bear market crash. Although short-term losses have been ugly as the company spends aggressively on its expansion efforts, this spending should pay huge dividends throughout the decade.

What makes Sea so special is that it doesn’t have one or two, but Three Differentiated and rapidly growing operating segments. The only one that generates positive earnings before interest, taxes, depreciation and amortization (EBITDA) at the moment is Garena, the company’s digital entertainment segment. Specifically, Garena benefits from the success of the hit mobile game Free shot. In total, 9.1% of Garena’s 568.2 million quarterly users paid to play its games in Q3. That percentage of pay-to-play users is good above the industry average.

Second, Sea has a thriving digital wallet business. Since the company operates in Southeast Asia and Brazil (ie emerging markets where a significant percentage of consumers are unbanked), it has a great opportunity to provide financial solutions where traditional banks have, until now, failed.

Third is the Shopee e-commerce platform. Shopee moved $19.1 billion in Gross Merchandise Volume (GMV) in the third quarter alone, compared to $10 billion in GMV for all of 2018. That’s how fast this e-commerce operation grew. With more conscious spending, Shopee is expected to approach adjusted EBITDA to breakeven by the end of 2023.

green thumb industries

marijuana reserve green thumb industries (GTBIF 7.67%) it’s a fourth phenomenal growth stock that you’ll regret not buying during the Nasdaq crash. Although extensive federal cannabis reform efforts have failed, legalization at the state level offers much promise for multi-state operators (MSOs) like Green Thumb.

As of early December, Green Thumb had 77 operating dispensaries in 15 legalized states, but has enough retail licenses in its back pocket to effectively double its dispensary presence over time. The company has focused much of its attention on limited license states where regulators deliberately limit the number of retail licenses a single company can hold. Entering limited license markets ensures that Green Thumb dispensaries have time to build brand awareness and grow their customer base.

What makes Green Thumb one of the best marijuana MSOs to own is your income mix. More than half of all sales are derived from a mix of edibles, dabs, drinks, vapes, pre-rolls, and health and beauty products. These are known as “derivative” marijuana products, and they command significantly higher price points and much juicier margins than traditional dried cannabis flower.

While most marijuana stocks are still in search of their first quarterly profit, Green Thumb has produced nine straight quarters of GAAP (GAAP) Benefits. In other words, you seem like a true leader in one of the fastest growing industries in the US.

metaplatforms

The fifth amazing growth stock you’ll regret not buying in the fall is social media giant metaplatforms (GOAL 2.82%). Although ad spending could weaken in the near term as fears of a potential recession in 2023 mount, Meta offers sustained competitive advantages that make it an obvious buy at its current share price.

Despite pivoting towards a metaverse approach (I’ll get to this in a bit), it can’t be simply overlooked how dominant are Meta’s social media assets. Combined, Facebook, WhatsApp, Instagram and Facebook Messenger attracted 3.71 billion unique visitors each month during the third quarter. That’s more than half of all the adults on this planet available to advertisers. There isn’t a social media platform anywhere that gives merchants the opportunity to reach users like Meta, and their historical ad pricing power proves it.

As for the metaverse, CEO Mark Zuckerberg is investing in content for the future. Even with heavy losses tied to Reality Labs (the company’s metaverse operating segment), Meta’s ad operations easily maintain the company’s profitability. For starters, Meta has $31.9 billion in cash, cash equivalents and marketable securities. There is ample financial flexibility here for Zuckerberg to make his company a key gateway to the metaverse.

Meta has never been so cheap in its 10 years as a publicly traded company, and it would be a shame for long-term investors to miss out on this opportunity to pick up shares on the cheap.