Which stocks do you buy during a market downturn?
I bought $PYPL as a new position and I'm thinking of diversifying into sectors like $CELH or Elf Beauty.
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CM
Solid buys $META — I already have a large portion of my portfolio there at around $500 and I don’t plan to buy more, even though I think the upside is huge. $AMZN I also buy around $200–$210. And for $PYPL I think the bottom is around $50–$55 and the upside is much greater than the risk; the stock currently prices in almost no growth by P/E and P/S, but its PEG is about 0.80 if I’m not mistaken, which is solid. If the company keeps growing revenue—or improves it—the stock could run toward $100, and I’d plan to trim the position around $100–$120 ☺️
MB
This week I added to the usual names like $AMZN, $NU, $SOFI, and after a long time also bought some $CRM when it dipped below 230. I commented elsewhere on my strategy regarding $TTD; $META under 600 (585 — another buy only possibly under 570), yesterday $PANW after earnings, and $XIACY likewise. In some cases because of excellent results despite a solid drop and a not very large position, in others due to continued decline, an unchanged view on the stock, and dilution.
I should have obviously sold one share yesterday at the first decent price, but small mistakes happened, happen, and always will happen.
JM
What do you expect from an investment in $PYPL? It's been languishing at the bottom for over three years with no sign of recovery. Sentiment hasn't changed in that time, but maybe the market is undervaluing this stock? Or am I wrong? Or is it a once-in-a-lifetime investment?
CM
I’m taking that stock with that risk. Even if the growth profile stayed the same and revenues grew 6–7% annually, in my view the stock shouldn’t be at the levels it was in 2018. It makes up 3% of my portfolio and we’ll see how the next quarters go.