3 Growth Stocks Down 39% to 84% to Buy Right Now
As 2024 draws to a close, it’s been nearly two years since the bottom of the 2022 bear market. While many top stocks have rebounded, driving indexes to new highs, several smaller stocks are still trading far below their pandemic-era peaks. With the recovery beginning to broaden, now might be the perfect time to consider these underperformers—particularly the three growth stocks highlighted below.
1. Airbnb (Down 39%)
Airbnb (NASDAQ: ABNB) has revolutionized the short-term rental industry but is currently down 39% from its 2021 high. The company’s AI-powered tools, which enhance pricing strategies and mitigate risks like property damage, continue to offer a competitive edge. Despite a challenging global economy and rising competition from hotels, Airbnb’s revenue climbed to $4.9 billion in the first half of 2024, with a net income increase of 7%.
Investors can now grab Airbnb at a price-to-earnings (P/E) ratio of 18, reflecting what could be an overreaction to temporary hurdles, making it a potential bargain for long-term buyers.
2. Sea Limited (Down 75%)
Sea Limited (NYSE: SE) was a pandemic winner, thriving in e-commerce, gaming, and fintech. However, strategic missteps, like expanding into non-core markets, led to a 75% drop in its stock price. The company has since refocused on its Southeast Asian core and seen a resurgence in its popular Free Fire game.
Sea Limited posted a 23% revenue increase in the first half of 2024, despite a temporary decline in profits due to increased marketing investment. With its stock up 130% this year, Sea Limited could be on a path to reclaiming its past highs.
3. Roku (Down 84%)
Despite Roku (NASDAQ: ROKU) growing its customer base and streaming hours, its stock has plunged 84% since 2021. The company faces challenges from a slow recovery in the ad market and intense competition from streaming giants like Netflix and YouTube. However, Roku remains a leading TV operating system in the U.S.
Roku’s revenue grew 16% in the first half of 2024, with losses shrinking to $85 million from $301 million the previous year. Its price-to-sales (P/S) ratio of 3 suggests it’s undervalued, and as monetization improves, Roku may finally begin its long-awaited recovery.
These three stocks—Airbnb, Sea Limited, and Roku—could represent attractive opportunities for investors seeking growth at a discount.