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Today’s episode of Full Court Finance at Zacks dives into the market after the Nasdaq fell into bear market territory earlier this week. The recent selling and larger 2022 downturn sent many growth stocks to levels that might start making them attractive to long-term investors, even if near-term volatility remains. The three beaten-down tech stocks we explore today ahead of earnings are Shopify (SHOP - Free Report) , Block (SQ - Free Report) , and Datadog (DDOG - Free Report) .
Buyers finally showed up Thursday after stocks had been hammered to start the final week of April, with the Nasdaq finishing 3% higher, followed by the S&P 500’s 2.5% climb, and the Dow’s 1.9%.
Tuesday’s huge fall sent the Nasdaq to new 52-week lows and back into bear market levels, while the S&P 500 slipped to roughly 15% off its highs. Wall Street appeared willing to start scooping up stocks again at these rather intriguing levels even though the same conditions that pushed the market lower and lower in 2022 remain.
Rising interest rates, soaring inflation, and log-jammed supply chains are dragging companies and the economy down. The continued major lockdowns of huge Chinese cities seems set to make matters worse. And fresh data out Thursday showed the U.S. economy shrank by 1.4% in the first quarter, for its first decline since the initial covid lockdowns.
Luckily, the headline number was driven by a growing U.S. trade deficit. In fact, U.S. consumer spending, which drives the economy, climbed in the first quarter. The coming months could remain uncertain, but the outlook for S&P 500 companies in 2022, 2023, and beyond appears strong.
Therefore, investors with longer-term horizons might want to start considering buying some tech stocks at what could look like bargain prices down the road.
The first stock up is Shopify (SHOP - Free Report) ahead of its Q1 financial release on Thursday, May 5. Shopify helps businesses with all things e-commerce and it’s expanding its offering to help its clients become more robust retailers. Shopify stock is up nearly 500% in the last five years, but it’s trading below where it was prior to the initial covid selloff in early 2020.
The next name up is Block (SQ - Free Report) ), formally known as Square. Block will report its Q1 results on May 5 and it also trades at a huge discount to its records. SQ is one of the quintessential fintech firms, offing payment software, POS tech, peer-to-peer payment apps, and much more. Block is setting itself up to compete alongside major banks, credit card companies, and other financial services firms for years to come.
The last name we discuss, Datadog (DDOG - Free Report) , is also set to release its quarterly results on May 5. Datadog is a cloud software firm that enables its clients to monitor the performance of databases, servers, apps, networks, and more. DDOG added tons of larger clients in 2021 and Datadog’s growth outlook remains strong even as it starts pulling in billions of dollars in sales.
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Buy These 3 Growth Tech Stocks at Big Bargains?
Today’s episode of Full Court Finance at Zacks dives into the market after the Nasdaq fell into bear market territory earlier this week. The recent selling and larger 2022 downturn sent many growth stocks to levels that might start making them attractive to long-term investors, even if near-term volatility remains. The three beaten-down tech stocks we explore today ahead of earnings are Shopify (SHOP - Free Report) , Block (SQ - Free Report) , and Datadog (DDOG - Free Report) .
Buyers finally showed up Thursday after stocks had been hammered to start the final week of April, with the Nasdaq finishing 3% higher, followed by the S&P 500’s 2.5% climb, and the Dow’s 1.9%.
Tuesday’s huge fall sent the Nasdaq to new 52-week lows and back into bear market levels, while the S&P 500 slipped to roughly 15% off its highs. Wall Street appeared willing to start scooping up stocks again at these rather intriguing levels even though the same conditions that pushed the market lower and lower in 2022 remain.
Rising interest rates, soaring inflation, and log-jammed supply chains are dragging companies and the economy down. The continued major lockdowns of huge Chinese cities seems set to make matters worse. And fresh data out Thursday showed the U.S. economy shrank by 1.4% in the first quarter, for its first decline since the initial covid lockdowns.
Luckily, the headline number was driven by a growing U.S. trade deficit. In fact, U.S. consumer spending, which drives the economy, climbed in the first quarter. The coming months could remain uncertain, but the outlook for S&P 500 companies in 2022, 2023, and beyond appears strong.
Therefore, investors with longer-term horizons might want to start considering buying some tech stocks at what could look like bargain prices down the road.
The first stock up is Shopify (SHOP - Free Report) ahead of its Q1 financial release on Thursday, May 5. Shopify helps businesses with all things e-commerce and it’s expanding its offering to help its clients become more robust retailers. Shopify stock is up nearly 500% in the last five years, but it’s trading below where it was prior to the initial covid selloff in early 2020.
The next name up is Block (SQ - Free Report) ), formally known as Square. Block will report its Q1 results on May 5 and it also trades at a huge discount to its records. SQ is one of the quintessential fintech firms, offing payment software, POS tech, peer-to-peer payment apps, and much more. Block is setting itself up to compete alongside major banks, credit card companies, and other financial services firms for years to come.
The last name we discuss, Datadog (DDOG - Free Report) , is also set to release its quarterly results on May 5. Datadog is a cloud software firm that enables its clients to monitor the performance of databases, servers, apps, networks, and more. DDOG added tons of larger clients in 2021 and Datadog’s growth outlook remains strong even as it starts pulling in billions of dollars in sales.