Growth Stock Meltdown: ROKU and PYPL vs. NVDA and TTD
Lots of blood in the water so let’s decide where to buy some December gifts.
This story originally appeared on Zacks
Holy overvalued price-to-sales ratio Batman! These stocks are going down!
In today’s Cook’s Kitchen, I take a look at the bloodbath in our favorite growth machines, from Roku ROKU to PayPal PYPL.
I also explain why I’m confident about where I can buy PayPal, but not so sure about Roku.
Just as important, I explain how to buy any of your favorite ideas as they are coming down.
For instance, I want to be a buyer of PYPL above $170. And I’m so confident, that I’m willing to put a limit buy order in my account to capture the next flush.
Why is this so important? Because during crushing sell-offs in growth stocks, the algos will push hard to trigger all the stop-loss orders.
And this means that when you get that last spike down, it will come quick and reverse before you can say “I knew I shoulda had a buy order in there!”
Where’s the Strength in This Market?
Then there’s NVIDIA NVDA and The Trade Desk TTD. In the video, I show a table of relative strength for about 30 top growth stocks as of last week. It comes courtesy of Chris Perruna’s Twitter feed, @cperruna, where he ran a 3-month relative strength screen using MarketSmith.
In the top of the heap were two of my favorites, NVIDIA and The Trade Desk. I’m still holding NVDA with a cost basis near $100 with no fear of giving back some profits.
And in TTD — who I call the “CME of Advertising” — we just took 120% profits last month. So I’m looking to buy inside $90-95.
Finally, Shopify SHOP was holding up pretty well too at the end of last week with a relative strength rating of 88, right there with Apple busting new highs.
But this week it’s down another 7% from all-time highs above $1700. I’m getting ready to buy some Shopify if shares slip under $1425.
One more thing: In the video, I also talk about what I think the extent of this corrective action will be for the S&P 500 and where this whole sell-off turns around again to close the year on a high note.
Actually, two more: I mentioned my discussion with Tracey Ryniec on her MarketEdge podcast Tuesday. Here’s that link…
Growth Stock Sell-Off: What Should You Do?
Tracey and I discuss PINS, PTON, LULU, RH, EXAS and more in that 30 minute episode.
Disclosure: I own shares of NVDA and PINS and may be buying PYPL and TTD soon.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
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NVIDIA Corporation (NVDA): Free Stock Analysis Report
PayPal Holdings, Inc. (PYPL): Free Stock Analysis Report
Shopify Inc. (SHOP): Free Stock Analysis Report
The Trade Desk (TTD): Free Stock Analysis Report
Roku, Inc. (ROKU): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
Holy overvalued price-to-sales ratio Batman! These stocks are going down!
In today’s Cook’s Kitchen, I take a look at the bloodbath in our favorite growth machines, from Roku ROKU to PayPal PYPL.
I also explain why I’m confident about where I can buy PayPal, but not so sure about Roku.
Just as important, I explain how to buy any of your favorite ideas as they are coming down.
For instance, I want to be a buyer of PYPL above $170. And I’m so confident, that I’m willing to put a limit buy order in my account to capture the next flush.
Why is this so important? Because during crushing sell-offs in growth stocks, the algos will push hard to trigger all the stop-loss orders.
And this means that when you get that last spike down, it will come quick and reverse before you can say “I knew I shoulda had a buy order in there!”
Where’s the Strength in This Market?
Then there’s NVIDIA NVDA and The Trade Desk TTD. In the video, I show a table of relative strength for about 30 top growth stocks as of last week. It comes courtesy of Chris Perruna’s Twitter feed, @cperruna, where he ran a 3-month relative strength screen using MarketSmith.
In the top of the heap were two of my favorites, NVIDIA and The Trade Desk. I’m still holding NVDA with a cost basis near $100 with no fear of giving back some profits.
And in TTD — who I call the “CME of Advertising” — we just took 120% profits last month. So I’m looking to buy inside $90-95.
Finally, Shopify SHOP was holding up pretty well too at the end of last week with a relative strength rating of 88, right there with Apple busting new highs.
But this week it’s down another 7% from all-time highs above $1700. I’m getting ready to buy some Shopify if shares slip under $1425.
One more thing: In the video, I also talk about what I think the extent of this corrective action will be for the S&P 500 and where this whole sell-off turns around again to close the year on a high note.
Actually, two more: I mentioned my discussion with Tracey Ryniec on her MarketEdge podcast Tuesday. Here’s that link…
Growth Stock Sell-Off: What Should You Do?
Tracey and I discuss PINS, PTON, LULU, RH, EXAS and more in that 30 minute episode.
Disclosure: I own shares of NVDA and PINS and may be buying PYPL and TTD soon.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
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