Will the stock market collapse again? Absolutely yes. It is a question of when not.
There are many investors who expect this to happen sooner rather than later. We are already seeing increased market volatility as the number of COVID-19 cases increases in the United States. The prospect of a severe second wave of autumn breakouts could be enough to burst what some think is a bubble.
I don’t want the stock market to crash again soon. But I like to admit that part of me wouldn’t mind buying shares in several of my favorite growth stocks at a lower price. Here are three stocks that I will buy absolutely positively when the stock market collapses again.
Since its low on March 16 in the last major stock market downturn Fast (NYSE: FSLY) has delivered an amazing gain of more than 680%. I bought the stock a few weeks ago, too late to get into most of the wild ride, but soon enough to get a decent return in a short amount of time.
Fastly was such a big winner because it is an ideal COVID-19 game. The company’s edge computing and content delivery network (CDN) platforms accelerate the delivery of apps and data from the cloud. This becomes more and more important when companies give employees the opportunity to work from home like never before.
The shares are currently trading at more than 33 times sales and a market capitalization of nearly $ 8 billion. Admittedly, that’s a nosebleed assessment. However, I don’t think it’s too late to buy Fastly: the company’s addressable market is expected to be around $ 36 billion by 2022, giving Fastly plenty of leeway.
I would like to have the opportunity to improve my position in Fastly if this resolves in a general market decline. But I doubt I’ll wait to see if it happens. Fastly’s prospects are so tempting that I will probably buy more stocks no matter what the stock market does.
2. Livongo health
Shares of Livongo health (NASDAQ: LVGO) have skyrocketed by more than 270% since the low point in mid-March. I only bought the stock in early May, but it has continued to make a strong profit in the past few months.
Livongo is another company that has benefited from the COVID 19 pandemic. The company specializes in providing technologies that help people manage their chronic illnesses better. Remote monitoring and disease management for people with diabetes and high blood pressure are the focus and will likely continue to grow in importance after the pandemic ends.
A price / performance ratio of more than 36 would be scary for most investors. It would also be for me if I were not sure of Livongo’s growth potential. The company estimates that its addressable market is nearly $ 47 billion. However, this total only includes the US market and only diabetes and high blood pressure. Livongo also targets other chronic conditions such as behavioral disorders and could later expand to international markets.
Still, it would be great to buy more Livongo Health stocks in one jump or dive. I think Livongo, like Fastly, should be more resilient than most stocks when the COVID-19 pandemic worsens. But it could pull back a little. If so, I am ready to throw myself.
3. The Trade Desk
The trade desk (NASDAQ: TTD) The stock has risen by more than 56% since the beginning of the year and has risen by more than 180% since its low on March 18. I am happy to say that I owned the stock for a while and participated in all the fun I’ve had in 2020 so far.
The COVID 19 outbreak poses a risk to The Trade Desk. The company’s programmatic advertising platform makes money when advertising agencies buy ads. If the clients of these agencies cut their advertising budgets, The Trade Desk suffers. That happened in March, but it was only a short headwind: the company’s sales recovered quickly.
Yes, The Trade Desk shares are trading at a premium of 27. However, the rapid rise in Connected TV (CTV) is leading to rapid growth in programmatic advertising. I expect a large portion of the planned $ 1 trillion global advertising market to be programmatic over the next decade, with The Trade Desk being a primary beneficiary.
Should another stock market crash occur in the near future, this is probably due to fears of a second wave of the coronavirus outbreak or a continuing recession as a result of the pandemic. In both cases, The Trade Desk stock can stall, especially if advertisers are managing their spending. In my opinion, however, this would only be a temporary problem, which would offer an excellent opportunity to buy The Trade Desk cheaply.