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Well howdy there folks and welcome into today’s video i hope you guys are doing great out there as always so today we’re going to talk about three new grow stocks i never talk about on the channel that are down over 50 i saw this uh basically article in the newsletter yesterday on the hungry bowl that they put out on three gross stocks that have crashed over 50
Percent and is it time to buy these stocks so i said let’s go ahead and let’s do a little reaction to these three stocks in this video here today let’s talk about these stocks not stocks i ever talked about on the channel so i want to give my two cents on these stocks do i think they’re buys do i not think they’re buys things like that so i hope you guys enjoy
This video as always all i ask in return is that you smash that like button and that’s literally it i appreciate you guys in a huge way for being here by the way if you haven’t got a chance to check out the hungry bowl there’s a way to track your stock to keep up with the news in relation to your stocks as well as do a little bit of research listen to earnings
Calls i’m hoping to have sec reports in there in the next week or two as well as read our daily newsletter so if you haven’t got to check that out on your ios or android store definitely do it’s absolutely free to use that all right uh well you know i gotta at least mention the chef is up guys i couldn’t believe it i woke up this morning i was like oh my gosh
The chef is actually up i got to turn my fireplace green oh it’s magical and oh man obviously the short sellers and the bears they’ve had a lot of fun over the past uh you know few trading days let’s put it that way with the memes uh making fun of me making fun of it you know anybody in the in the tattoo chef squad but i gotta say i definitely saw the longs
Getting back at him today i like this one burr that’s one of the the the bearish people on the stock when he knows jeremy makes ten thousand plus after every one percent and goes up oh man yeah you know yeah if you’re gonna give it you got to be able to take it as well man and then the bears and the short sellers they love to make all those memes when the stocks
Going down but uh hey you know it happens the other way as well alrighty guys let’s get into these three stocks first one up here of the bunch is this one it’s a wish and the wish shareholders wish i would say a lot of good things about this one okay oh the wish stock this one has been getting devastated look at this okay the discount ecommerce platform is down
About 70 percent since its nasdaq debut in december booking a 26 loss in the past three days alone the company posted disappointing earnings last week reporting a 13 drop in downloads and a 15 decline in average time spent on the app from the prior quarter okay so first off that’s like legit bad news okay this isn’t like a situation where it’s like oh they they
Just barely missed analyst estimates on the revenue or something like that right like oh they missed by four million dollars in revenue no no this is this is different okay this is really bad news when you report a 13 drop in downloads and a 15 decline in average time spent on app from the prior quarter that means people are spending far less time on your app and
That means a lot less people are interested in downloading so which is obviously bad bad bad news for wish or any app like you know in general right revenue fell 29 percent year over year also super bad news i mean it you know as an e-commerce company it doesn’t matter you should never see your revenues decline right never and the fact that this company had 29
Year-over-year revenue down this is extremely bad news i can understand why the stock has gotten absolutely devastated many wall street analysts have downgraded the stock but 64 percent of analysts have wish as a buy that’s kind of scary when you see these type of bad numbers and 64 has still had it as a buy it means there’s probably more analysts coming out to
Go to holds or cells right with rest saying hold the depressing quarterly numbers were likely amplified by the broader trend of slipping e-commerce sales as the economy reopened during the quarter in wishes making an intense effort to improve operations and products with recent hires from google okay i understand like the world’s opening back up maybe ecommerce
Sales aren’t as strong as expected but you can’t have 29 down year over year you can’t have 13 drop in downloads and you can’t have 15 less time spent on the app right that’s just things you can’t have and not only that when it comes to this wish stock it gets worse okay you’re looking at it by the way look at that chart oh my goodness from 22 to six bucks here
Today right you’re looking at a company that roughly has let’s say a four billion dollar market cap on it or so or a little over four billion dollars but here’s the problem with wish this is a company that is going to shrink revenues this year right down expected to be down one percent but when you saw 29 percent down last quarter don’t be surprised if that
Number is a lot worse than that expected to get back to revenue growth next year but that’s not uh when you when you just see a year over year number down 29 don’t automatically expect they’re going to grow right but let’s assume they grow it’s still very low growth and the company is a money loser okay so at the end of the day when it comes to wish as bad as
You know me i love beating down dog stocks and this one’s it’s definitely a beating down dog stock from 22 dollars to six bucks i mean i would love to be like yeah this is the next stock i’m buying but man i mean it’s uh there’s nothing to be excited about here when you have 29 revenue growth down year over year when your downloads are going down when people are
Spending far less time on your app and uh you know you’re a money loser all those are wrapped into one that’s just it’s too much bad news to overcome for me to be like i gotta go buy this one as bad as i would like to if i saw a major change in the business model that or i saw i don’t even need to see a major change in the business small i just didn’t see enough
Change that would make me say um okay this is interesting you know okay then we can talk but right now it’s it’s in an ugly ugly place and uh somebody needs to save that company because they’re they’re in a bad situation let’s put it that way okay so that’s wish stock that was the first these three stocks up mentioned here let’s get in the second stock of these
Three and that is this one fastly f s l y now before i get into this real quick for the hungry bull app we actually just started using fastly recently uh the tech team ryan over there and whatnot he says uh you know fastly definitely helps us uh basically with our speeds as far as opening the app and things like that in different markets in a major way so i just
Want to be telling you guys that literally for the hungry bull we’re using them now fastly’s valuation has been cut in half over the past six months its latest earnings report revealed a slow and yearly growth and fastly expects revenue to only grow 17 to 20 percent for the full year versus previous analyst estimates of 31 percent as a massive change in growth
Rates right you know and oh yeah we’re only going to grow 17 to 20 when you were supposed to grow 31 you know once again another stock that i can understand has been devastated right the stock has been getting hammered as a service outage in june led to some big customers let’s hope they never have a service outage anymore man i don’t want that for the hungry
Bull led some big customers away from the cloud computing platform but customer accounts are still up 30 percent year over year bulls say fastly it has a unique opportunity to expand revenues through the edge computing servers and deliver higher margins in the future sixty-four percent of analysts have uh fastly as a whole it’s interesting from that perspective
That’s exactly what we’re using it for the edge right and um i can definitely see this being a potential sticky business model long term where you know clients such as uh you know us with the hungry bull right or other apps that get used to using them as long as we’re happy with them right we’re gonna continue to use them and they’ll have pricing power long term
However they got to watch out because i could tell you if also in an app goes down for a day or several days yeah your clients are going to be off of you right they’re going to go to some other competitor um or somebody like that right and from our understand from my understanding as far as hungry bull like fastly made the most sense for us when trying to choose
Somebody for the edge because of the kind of their customized solutions we they can have over there okay but yeah this is the bad news okay if they ever have that type of situation again with fastly i can tell you they’re going to lose more clients and they’ll be just you know kind of cast away as uh unreliable so they really need to watch that so it’s definitely
A risk okay now another kind of uh troubling thing with fastly is when you look at this stock we’re talking about it by the way today i don’t know why yahoo finance is tripping there’s no 4p on the stock to expect to lose money next year as well so it’s a money losing company and it’s at a price to sales ratio of let’s say 14. uh you know definitely even after
All that falling in the stock is definitely pretty highly valued still on a price to sales ratio and the fact that they don’t make any money now on the flip side what excites me about fastly when i really think about this one is i can definitely see them growing at let’s say a 15 to 25 clip for years and years and years and years to go in the future as long as
They have no more major outages that’s the big thing okay if they have another major outage oh boy okay it could get much uglier for the stock but as long as they can stay out of outages i could see the stock being a 15 to 25 revenue growth growth company for years like as far as i can see pretty much and from that perspective makes it pretty interesting then
When you think about margins long term as this company gets more and more clients and into the sticky business model which is a needs-based business model the edge right i can definitely see fastly as being one of those stocks that could potentially be a beast long term so i’m at least interested in this one i’m going to do more research here it’s interesting to
Me okay fastly all right guys let’s get this last stock the third stock of of these three and by the way a lot of you guys might own the stalker have thought about owning the stock in the past i don’t think i’ve ever ever talked about this one although it’s a kind of a ev related play okay and his plug power plug after a wild run in the back half of 2020 plug
Power dropped off significantly from its all-time highs the stock is down 48 and a half percent over the last six months but has rebounded off recent lows to 20 dollars per share auburn higher analyst colin roush reiterated his buy rating on plug with a price target of 62 dollars representing a potential upside at nearly 150 percent 150 percent the hydrogen
Fuel cell company recently started working on its third green hydrogen plant and roush says this offers plug with critical scale capabilities plug power also recently raised revenue guidance to a range of 475 ml to 500 ml okay like i said this stock is one of those that you know it kind of gets um let’s just say it’s obviously wrapped up into i don’t want to
Call it the ev wave i really want to call it the um let’s call it the renewable energy wave right and with all the renewable energy stocks made this crazy move in the back half of 2020 and obviously at the beginning of 2021 plug power went right along with all those other renewable energy type companies right and so if we look at this company look at this it
Was at 75 plus dollars and it’s at 25 bucks a fall has been dramatic it’s still a pretty big market cap in this company right 14.5 billion so i mean we’re not talking about one of these small caps like a lot of these stocks that have been you know heavily damaged this is actually a pretty big market cap 14.5 billion there unplugged power right now i will say
What is interesting about this stock okay what is not interesting is the money loser right expect to lose money this year and next year as well but we’re things are a little bit at least interesting when it comes to plug power and why i might have to spend a little time on this stock is look at the revenue growth expected here 45 and a half percent revenue
Growth expected in current year and then an acceleration of revenue growth which you know one of the best things you can ever see in a stock is is revenue acceleration 51.6 percent revenue growth expected in 2022 and so that makes this stock actually pretty darn intriguing okay so with stock ah you know i got to see something changing the business model fastly
Definitely the most interesting these three for me and this one’s a little interesting to plug power as well hope you guys enjoyed this video as always much love and have a great day
Transcribed from video
3 NEW GROWTH STOCKS DOWN 50%+ | STOCKS TO BUY? By Financial Education
