Stock markets can be volatile and unpredictable, and previous performance is not necessarily an indicator of future results. So while it’s true that market downturns can present opportunities to buy stocks at lower prices, it’s also essential to contemplate the risks and research before making investment decisions. So let’s dive into the two stocks you should consider as part of your portfolio.
Airbnb
Airbnb is a company that provides a platform for individuals to list and book short-term rentals of properties, such as vacation homes and apartments. The company’s share price has declined significantly over the last year, falling 37% and dropping 56% from its previous high.
Despite the decline in its share price, the third quarter saw the company report strong financial results, with sales increasing 29% year-over-year to $2.9 billion and net income rising 46% to $1.2 billion. The company also generated $960 million in free cash flow and $3.3 billion in free cash flow over the trailing 12 months.
Despite these strong results, Airbnb’s share price has declined significantly over the last year, falling 37% and dropping 56% from its previous high. This decline could be due to many factors, including investor concerns about macroeconomic challenges.
As a result, Airbnb’s market capitalization is currently at around $52 billion, or less than 16 times trailing free cash flow. However, this valuation may be attractive to some investors, given the company’s strong growth potential and the potential for margin expansion.
CrowdStrike
CrowdStrike is a cybersecurity company that provides different security services to help businesses protect against cyber threats. The company’s Falcon platform, a cloud-based security solution, prevents cyber-attacks by detecting and blocking malicious activity on these devices and provides real-time visibility and analytics to help organizations understand and respond to threats.
CrowdStrike is a leading cybersecurity firm that offers a range of security services designed to protect businesses from various online threats, including malware, ransomware, and phishing attacks.
The company’s Falcon platform is a cloud-based security solution that helps prevent cyberattacks by detecting and blocking malicious activity on devices and offers real-time visibility and analytics to help organizations understand and respond to potential threats.
During the third quarter, the company reported impressive financial results, with revenue rising 53% year-over-year to $580.9 million and adjusted free cash flow increasing 41% to $174.1 million.
However, despite these strong results, the company’s stock price has dropped significantly over the past year, falling 50% from its previous high. There could be several reasons for this decline, such as market pressures that have led to sell-offs of growth stocks.
Although the market can be volatile, long-term investors may view this drop in stock price as a buying opportunity, given the increasing importance of protection against cyberattacks for businesses and institutions.