3 growth stocks that are in extreme decline and billionaires keep buying them

The last period is not an ideal time for us investors and we can say that it is one of the most challenging in recent years. However, when we look at it from a different perspective, we can consider these volatile times in the market as a great opportunity to buy stocks that are in a significant slump. Even better, we have the opportunity to be inspired by major investment names and their purchases, which are certainly undergoing quality analysis.

Here are 3 companies that well-known investors buy even during downturns.

As for these companies, even the bear market hasn't stopped these investors from investing in companies that have high potential and are now in an attractive % downturn. The advantage we have is that we can track by Form 13F what is being bought and when it is being bought and especially by whom. And we can get pretty good inspiration based on that, as these names have access to good information.

What's particularly interesting is that the billionaires selected are focused on some of the overbought growth stocks on Wall Street. The next three growth stocks are down tens of %, but billionaires can't stop buying their stocks. which may be a good sign for these companies.

1. Okta $OKTA+1.1%

Okta, Inc. provides identity solutions for businesses, small businesses, universities, nonprofits, and government agencies in the United States and internationally. The company offers Okta Identity Cloud, a platform that offers a suite of products and services such as Universal Directory, a cloud-based system of record for storing and securing user, application, and device profiles for an organization, also Single Sign-On, which allows users to access applications in the cloud or on-premise from a variety of devices. Adaptive Multi-Factor Authentication provides a layer of security for cloud, mobile, web applications and data. Lifecycle Management, which allows IT organizations or developers to manage user identity throughout the lifecycle...

Okta is about an 80% drop from ATH as far as the chart is concerned, which is pretty attractive. However, the drop in Okta's share pricewasn't enough to scare off billionaire Ken Griffin of Citadel Advisors or Jim Simons of Renaissance Technologies. Citadel and Renaissance bought about 1.6 million shares and 618,300 shares of Okta in the second quarter.

Source: Yahoo.Finance

The attraction may be due to the increasing intensity of various cyber attacks. This makes enterprise-level and end-user cybersecurity solutions a necessity in any economic environment. Okta specifically relies on artificial intelligence to enable its platform to become more effective at recognizing and responding to threats over time. Another key aspect of Okta's growth story is its $6.5 billion acquisition of Auth0, which was completed in May 2021. Although Auth0 remains an independent entity under the Okta umbrella for now, this acquisition broadens Okta's appeal to enterprises and expands the company's sales channel capabilities into international markets. Okta has previously stated that its addressable identity security market is an $80 billion market. Source: Yahoo.Finance

As we can see, analysts from Yahoo are predicting a median price of $100 for this company, which is almost a 100% increase, but what we need to focus on is that they have a loss of almost $850 million for 2022.

2. Upstart $UPST-0.5%

Upstart Holdings, Inc. along with its subsidiaries, operates a cloud-based AI rental platform in the United States. Their platform aggregates consumer demand for credit and connects it to the company's network of AI-enabled banking partners. Nearly three-quarters of all loan approvals on Upstart's platform are automated. That means saved time and money for both loan applicants and the roughly six dozen financial institutions Upstart partners with. What gives them a competitive advantage is that the Upstart platform opens up opportunities for people who would not have been approved through the traditional screening process.

This company is often inflected and there are a lot of posts coming out about it, one fact is that it is down more than 90% from ATH and that can already look all kinds of things in terms of the chart. Despite Upstart's poor performance over the past year, billionaire Philippe Laffont of Coatue Management sees better days ahead. During the second quarter, Laffont's fund bought more than 2.36 million Upstart shares, giving him a nearly 2.8% stake in the company.

Source: Yahoo.Finance

As for the price, analysts estimate a median price of $26.

According to analysts, Upstart is just at the beginning of its potential journey and may have a lot ahead of it. After years of focusing on personal loans, it has begun to push into car loans and small business loans. On a combined basis, they offer an addressable market 10 times larger than personal loans, so there is certainly room for growth.

Source: Yahoo.Finance

However, as we can see Yahoo's rating is on a Hold status, so you need to do extensive research and analysis before investing.

3. Nvidia $NVDA+4.8%

I probably don't need to specifically introduce this company. NVIDIA Corporation provides graphics, computing and networking solutions in the United States, Taiwan, China and internationally. NVIDIA Corporation sells its products to original equipment manufacturers, original equipment manufacturers, system manufacturers, add-in board manufacturers, retailers/distributors, independent software vendors, Internet and cloud service providers, automotive manufacturers, etc.

Source: Yahoo.Finance

As for the median price for Nvidia stock, analysts see the average at $197, which is a nice % from the current value.

Even though the company is down a significant amount versus ATH, about -60%, even that hasn't deterred some well-known investors from buying. Investors from Two Sigma Investments have been buying Nvidia stock in a big way. During the second quarter, Two Sigma bought nearly 1.27 million shares. The attractiveness of this company may also be due to Nvidia's plans to expand its data center segment. Although most investors know Nvidia for its graphics processing units, which are used in computer gaming and cryptocurrency mining, data centers represent the company's most interesting long-term opportunity. Nvidia is also opening doors in a new and fast-growing sector of the metaverse. However, nothing is ever perfect, and the weakening economic growth outlook and geopolitical issues are a serious concern for Nvidia at the moment.

Source: Yahoo.Finance

As we can see analysts from Yahoo have given this company a clear BUY status.

We can see that seasoned investors see this situation as an opportunity to buy the stock at a nice selloff. It is certainly clear that they have good information and teams of analysts. Therefore, it is certainly a good idea to take inspiration from them, but the decision is yours and do not take this as investment advice, just as a hint.

If you like this post, feel free to give me a follow and any comments.

Read the full article for free?
Go ahead 👇

Do you have an account? Then log in . Or create a new one .

I Like Your Post.

Comment

Trade involves the transfer of goods and services from one person or entity to another often in exchange for money Economists refer to a system or network that allows trade as a market An early form of trade barter saw the direct exchange of goods and services for other goods and services 1 i e trading things without the use of money 1 Modern traders generally negotiate through a medium of exchange such as money As a result buying can be separated from selling or earning The invention of money and letter of credit paper money and non-physical money greatly simplified and promoted trade Trade between two traders is called bilateral trade while trade involving more than two traders is called multilateral trade
Disclaimer This is by no means an investment recommendation This is purely my summary and analysis based on data from the internet and other sources Investing in the financial markets is risky and everyone should invest based on their own decisions I am just an amateur sharing my opinions
A cryptocurrency bubble is a phenomenon where the market increasingly considers the going price of cryptocurrency assets to be inflated against their hypothetical value The history of cryptocurrency has been marked by several speculative bubbles Some economists and prominent investors have expressed the view that the entire cryptocurrency market constitutes a speculative bubble Adherents of this view include Berkshire Hathaway board member Warren Buffett and several laureates of the Nobel Memorial Prize in Economic Sciences central bankers and investors
Trade involves the transfer of goods and services from one person or entity to another often in exchange for money Economists refer to a system or network that allows trade as a market An early form of trade barter saw the direct exchange of goods and services for other goods and services 1 i e trading things without the use of money 1 Modern traders generally negotiate through a medium of exchange such as money As a result buying can be separated from selling or earning The invention of money and letter of credit paper money and non-physical money greatly simplified and promoted trade Trade between two traders is called bilateral trade while trade involving more than two traders is called multilateral trade
Disclaimer This is by no means an investment recommendation This is purely my summary and analysis based on data from the internet and other sources Investing in the financial markets is risky and everyone should invest based on their own decisions I am just an amateur sharing my opinions
We all know the good old fable surrounding the great mans name which is that Buffett has been beating the S&P 500 index for a long time Better put Buffett and his Berkshire have generated a compound annual return of 201% since 1965 versus 105% for the S&P 500 This year that return may not be as great but thats due to the size of his Berkshire and not finding as many lucrative investments plus macroeconomic influences
Please note that this is not financial advice Every investment must go through a thorough analysis
Bitcoin is pseudonymous meaning that funds are not tied to real-world entities but rather bitcoin addresses Owners of bitcoin addresses are not explicitly identified but all transactions on the blockchain are public In addition transactions can be linked to individuals and companies through idioms of use e g transactions that spend coins from multiple inputs indicate that the inputs may have a common owner and corroborating public transaction data with known information on owners of certain addresses 65 Additionally bitcoin exchanges where bitcoins are traded for traditional currencies may be required by law to collect personal information 66 To heighten financial privacy a new bitcoin address can be generated for each transaction
Now a question for more experienced investors do you prefer value or growth style? If you combine both which I assume you do which one is more prevalent in your portfolio? Share in the comments!
Timeline Tracker Overview