The NASDAQ Composite Index has recently fallen into a secondary bear market since the epidemic emerged in 2020. However, investors must keep in mind that a share price fall does not always indicate a company is failing. Several technology-related stocks continue to report positive growth for their most recent quarters. Many IT firms have reported continued development for their latest quarters, but their stock prices have been battered owing to an overall lowering of valuations across the sector.
Here are three growth stocks that have had their share prices reduced by more than half but still have good prospects.
For example, Fiverr International (FVRR 2.19%) is a company that matches freelancers with firms wanting their services. Since the epidemic began, the number of users on the platform has increased, according to the firm. Despite the fact that Fiverr stock has lost 62% in the last six months, Fiverr is still posting good numbers.
In 2021, revenue increased 57.1% to $297.7 million, and gross profit climbed by 57% to $245.9 million, resulting in a gross margin of almost 83%. Free cash flow rose over 170% to $35.4 million during the same period. Its active buyer population grew 23%, reaching 4.2 million users, while spending per customer improved 18%. The firm expects revenue growth of between 25% and 27 percent throughout 2022, with the goal of increasing client base through platform improvements.
PayPal is a well-known e-commerce payment system that links merchants and customers to enable fast and secure transactions. Its stock has tumbled 56% over the past six months, but its business has never been better. T his year, TPV increased 33 percent to $1.25 trillion. Net revenue rose 18% in line with $25.4 billion in net earnings. Importantly, PayPal turned free cash flow of $5.4 billion into profits this year, up 9%.
PayPal ended the year with 426 million active accounts, up roughly 10% from 2017. Last year also saw PayPal introduce several new initiatives to extend its presence, including a buy now, pay later acquisition and checkout via cryptocurrencies. This year should see TPV expand by 21% to 24%, along with revenue growth of around 20%.
The DocuSign ( DOCU 4.37%) is a cloud-based electronic signature service that provides the DocuSign Agreement Cloud. As investors fear the firm’s ability to develop as pandemic disease subsides, shares have declined by almost 65%. During the previous two years, the company has witnessed an increased use of its services as organizations embrace remote work.
Its latest financial year (ended Jan. 31), sales increased 45% to $2.1 billion, and subscription income rose 47%. Future service billings increased 37% to $2.4 billion in the last fiscal year. Customers are spending more with DocuSign, and the number of customers with annual contract values of at least $300,000 has risen from 599 in fiscal 2021 to 852 last year. Management is confident that it will be able to capture new business in the current year, leading them to forecast continued top-line growth of around 18%.