🤩 TOP 9 High Growth Stocks to Buy the Dip for 2022

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In this episode, I'm going to lay out exactly what I'm doing as growth stocks are collapsing
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and people continue running for the hills.
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If your portfolio is hurting after these last few weeks, this episode is for you.
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Your time is valuable, so here's the bottom line upfront: I'm not selling anything, I'm
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building up my cash and my defensive cash-like positions, and I'm updating my watch list
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with the exact stocks and funds that I'll cover in this episode.
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Full disclaimer, I'm not a financial advisor and nothing in this episode is financial advice.
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Let's get right into it.
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Here's what's in my entire $100,000 dollar portfolio on public dot com right now, just
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to show you.
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I'll talk about what I bought and how it's been changing in a separate episode, but I'm
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showing you this so you can see that I'm down 10%, 20%, or even 30% on the money that I've
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invested so far.
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This doesn't bother me at all because I believe in the underlying companies, many of which
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I've covered on this channel, and I bought them for prices I thought were fair.
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So the first thing I'm doing with this existing portfolio is absolutely nothing.
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If you have stop losses on your positions, make sure you at least check them and make
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sure they're still where you want them.
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I've cleared all my automations and I'm doing everything by hand.
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The only things I have automated right now are my price ALERTS so I know to check on
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stocks that fall below a certain price.
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For example, I'm always happy to buy Facebook stock below 300 dollars a share, which is
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about an 840 billion dollar market cap, so I have an alert set to let me know when that
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happens.
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The second thing I'm doing is building up my cash and cash-like positions.
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My account is actually still almost 50% in cash because I'm concerned about the Fed accelerating
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tapering as well as the next wave of the pandemic.
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If you're not concerned about those things, that's okay, but now you have a data point
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for how I'm personally digesting that news.
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What are cash-like positions?
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To me, they're big tech stocks that are relatively stable and resilient to inflation but still
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have plenty of ways to grow their business.
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Google.
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Facebook.
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Apple.
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Amazon.
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Microsoft.
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To you, they might be bonds or stocks like Walmart and Costco.
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That's fine; the point is they're positions you treat as cash but that don't lose value
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to inflation like cash does.
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So, if you include those, I'm actually about 55% cash right now.
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If you were considering putting a little more cash than usual into your own account, now
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might be a good time to get it in there.
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I'm not saying spend it, I'm saying have it ready so you're not waiting for transfers
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to complete when you want to be spending it sometime in the future.
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All we're doing here is being proactive, not emotional.
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Okay, with the housekeeping out of the way, let's talk stocks.
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I'm going to go through them roughly in order from least risky to most risky, starting with
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ETFs.
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The first fund I'm watching right now is META, the Roundhill Ball Metaverse ETF.
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This is a fund that gets rebalanced quarterly by a panel of experts and is filled with around
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40 great stocks.
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The top holdings in this fund are NVidia, Roblox, Microsoft, Facebook, and Unity.
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As I said, Facebook and Microsoft are very defensive positions which really help limit
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the volatility of this fund.
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Its holdings also include semiconductor companies like Taiwan Semiconductor, Qualcomm, Apple,
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Intel, AMD, and Skyworks, which are again very reliable growth companies over long periods
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of time, since they make most of the computer chips on the planet, among other things.
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The META fund also includes content companies like Unity Software, Sea Limited for their
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Garena Platform, Take Two Interactive, Electronic Arts, and Activision Blizzard, as well as
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plenty of fintech and e-commerce companies like Amazon, Sea Limited, Coinbase, Alibaba,
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Square, and Paypal.
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The big thing about this fund is it's filled with companies that are driving the Metaverse
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forward, which means its holdings will all benefit from that idea as it becomes more
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mainstream, but none of them require the Metaverse to happen in order to succeed.
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Companies like Nvidia and Microsoft and Amazon and Apple, all of which sit near the very
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top of the fund, are going to be fine if the Metaverse never comes to be.
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So, this quarterly updated Metaverse Index Fund is my pick for the least risky but still
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great growth investment you can buy right now.
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Next up, we have ARKK, ARK Invest's flagship innovation fund.
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This fund is filled with the exact stocks that are getting hit the hardest, but it's
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actively managed by Cathie Wood
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and
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is pretty well diversified in terms of the kinds of technologies it holds: genomics,
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robotics, energy storage, blockchain technology, and artificial intelligence are all themes
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that show up in this fund.
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ARKK's top 5 stocks reflect that diversity pretty well: Tesla, Teladoc, Roku, Unity Software,
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and Coinbase are five companies that have very little in common.
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I treat ARKK like an innovation index since it contains companies working on technology
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platforms in all those different areas, except its holdings are updated daily.
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When ARKK crumbles like this, that tells me that something is going on with growth stocks
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and the broader market in general, not the companies themselves.
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Since this is an actively managed fund, you're not only getting a diverse set of growth stocks
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from all areas, you're getting Cathie Wood's management and all of ARK Invest's highest-conviction
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research as well.
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Since ARKK is the same financial product no matter the price, the cheaper it becomes,
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the more attractive it should be.
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In my opinion, if you loved this fund earlier this year, now is a great time to consider
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averaging down.
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I just did that in my personal portfolio.
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The first single company on the list is Meta Platforms, formerly Facebook.
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Meta Platforms is an extremely safe, stable, and diversified business today that's still
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growing like crazy year over year.
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Meta Platforms has slid around 20% in the last 3 months and is now sitting at under
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850 billion dollars in market cap.
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That's pretty crazy, considering they own Facebook itself, Instagram, WhatsApp, and
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Facebook Messenger, which are four of the top 6 or 7 most downloaded apps across all
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mobile devices, Apple, Android, or otherwise.
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A lot of people rightfully point out that Facebook's growth is slowing down in terms
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of daily and monthly active users.
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That's true but that's because, you know, more than a third of all humans alive are
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already on their platform.
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They're clearly shifting their focus to increasing average revenue per user, which they've increased
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by double-digit percentage points year-over-year around the world.
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They also own Oculus line of virtual reality headsets, which are the hands down the most
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popular VR headsets on the market today and will do a lot for them in the future.
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This is a stock that Cathie Wood holds inside ARKW, ARK Invest's fund themed around the
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next generation of internet applications.
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It's also a top position in the META ETF, and one of my favorite cash-like positions
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in my own portfolios.
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I think the low 300s is a great price for the stock.
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Next up is Alphabet, the parent company of Google.
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I'm actually struggling to find a market that Alphabet and Google don't compete in.
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Everything from dominating search and email and web browsing, to making their own phones
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and operating systems and smart TVs, to self-driving cars with Waymo, to building the most advanced
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artificial intelligence applications ever with programs like DeepMind and AlphaFold.
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Google even owns YouTube, so when I ask you to hit that like button and subscribe to the
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channel with all notifications turned on, what I'm actually asking you to do is tell
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Google's video content matching algorithm to put more of my content and other content
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like it in front of you over time.
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Like Facebook, investors who think Alphabet is out of room to grow probably haven't looked
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at the stock for a while.
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It's up 65% year to date, even with this most recent downturn.
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My point is, Alphabet isn't the kind of company that cares too much about inflation and does
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just fine during lockdowns.
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It's another great all-weather company that's held by Cathie Wood, this time in ARKQ, ARK
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Invest's fund themed around the autonomous revolution, as well as ARKX, their newer space
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exploration fund, and in the META ETF as well.
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If you've been following along with my portfolio project as an Insider tier Patron on Patreon
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or channel member right here on Youtube, you've noticed me buying a lot of Google stock lately,
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since I treat it as a cash-like position.
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Alright, now let's get into the more risky positions.
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First up is Sea Limited.
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If we go to Public dot com's page on Sea Limited, we can see it's actually three companies in
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one: Garena is their digital entertainment and gaming brand, Shopee is their e-commerce
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arm, and SeaMoney is their digital payment solutions.
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If each of these business units were a separate company, I'd have all 3 of them in my portfolio.
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I'm not kidding.
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Garena is the Southeast Asian publisher of some of the most downloaded games in the world
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like League of Legends and Free Fire, which it also developed.
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Shopee becomes one of the dominant e-commerce channels in every country it touches and SeaMoney
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is one of the fastest-growing Fintech units I've seen a company create.
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The fact that you not only get all 3 with one ticker but they all talk to each other
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and share resources makes this my absolute favorite company to hold for the long term.
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I think that Sea Limited could be a 1 trillion dollar company one day and it recently slid
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back down to a 100 billion dollar market cap, meaning I think it can 10x from here.
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Will that take time?
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Definitely.
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Can it go lower?
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Definitely.
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Would I buy this stock at this price and hold it for the long term?
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Definitely.
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One thing I love about Public dot com is they have a little indicator showing why they think
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a stock could be down right now.
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Shares of streaming, social media, and gaming companies are trading lower amid overall market
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weakness as new pandemic concerns weigh on stocks across sectors.
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So, literally, nothing to do with the company itself.
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Another thing I really love about Public dot com is they really focus on investor education
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and learning about companies, not just stocks.
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As a result, they end up featuring my deep dives on stocks quite often and my video on
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Sea Limited is no exception.
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If you want to know why I'm so confident in Garena, Shopee, SeaMoney, and everything they
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share, I made an episode covering it all.
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It's even got Jackie Chan.
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I'll leave a link to that in the top right-hand corner of your screen and in the description
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below as well.
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Next up we have Twilio.
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Twilio is a B2B cloud communications company that allows software developers to build all
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sorts of web-based tools like automatically sending and receiving texts, phone calls,
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Facebook and Instagram messages, emails, and so on.
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All sorts of businesses use the Twilio platform and they grew revenues by 65% year over year.
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Twilio is ARK Invest's 11th biggest position overall with just over 1 billion dollars invested
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in it.
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I definitely owe you a dedicated episode on Twilio and I promise I'll do it in the near
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future.
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Let's look at the Public dot com page for Twilio as well.
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Shares of several companies in the broader tech sector are trading lower on continued
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volatility amid pandemic concerns.
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Weakness from DocuSign and Asana earnings has also weighed on the sector.
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So again, absolutely nothing to do with the company itself.
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If we scroll down a bit, analysts are currently giving Twilio a strong buy rating with a price
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target of almost double the current share price.
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This is why I often use Public dot com's website as a starting point to figure out what's going
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on with a company and its stock and why I asked Public to be a sponsor for the channel.
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So, whether you're looking for a new home for your own portfolio or you just want a
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different way to support the channel, you can go to public dot com slash ticker symbol
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you and you'll receive a free slice of stock worth up to $70 when you fund your account.
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Public dot com is free to use with no account minimum to get started, doesn't charge fees
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for standard trades, and allows you to buy slices of stocks for as little as one dollar.
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So that free slice of stock when you fund your account is a win-win if I've ever heard
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one.
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I'll leave a link to that exclusive offer for you in the description below as well.
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Crowdstrike is a leading cybersecurity company that protects customers by leveraging its
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security cloud solution to stop breaches.
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Cloud technologies have transformed companies in a wide variety of market sectors, and cybersecurity
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is no exception.
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Crowdstrike runs a software as a service platform called Falcon, which is an endpoint protection
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platform that detects, prevents, and responds to cyber threats and attacks.
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An endpoint is just an access point – think laptops and desktops, mobile phones, servers,
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and so on.
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Like I said, Falcon is a platform, which means Crowdstrike and their partners can extend
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it by building and deploying new modules to provide customers with new functionalities
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over time.
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Because Falcon is cloud-based and runs as a single agent, it's lightweight, easy to
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get up and running, and provides nearly instantaneous value, which can't be said of a lot of cybersecurity
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services.
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In a world where more and more businesses are going digital and more and more cyber-attacks
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and data breaches make the news, Crowdstrike is poised to grow massively, like it has been.
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Crowdstrike has been trending down all month and it's almost back to its lows for the year.
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This is actually the lowest it's traded from a price to sales point of view.
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You won't regret putting Crowdstrike near the top of your watch list.
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The final two companies are both Fintech companies.
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First, we have Coinbase.
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Coinbase is ARK Invest's 3rd biggest position for a reason, which is that it acts kind of
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like a crypto index without being one.
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So, Coinbase is a great way to gain exposure to the rise of cryptocurrencies without holding
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them, directly.
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Today, Coinbase makes money by charging fees on transactions.
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So, the more transaction volume the better.
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Let's look at Coinbase's key metrics.
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Retail trading volume is up almost 5x year over year.
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Institutional trading volume is up almost 9x year over year.
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And more revenue is coming from other crypto assets than Bitcoin and Ethereum put together,
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which is great because it means Coinbase isn't relying on the price action of any one cryptocurrency
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for a majority of its revenue.
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As a result, Net Revenues are up more than 4x year over year.
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4x.
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Coinbase also just released their own fully stand-alone crypto wallet along the likes
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of MetaMask and Trust Wallet.
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If we look at the stock, it's down 25% from its recent all-time high and its market cap
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is now just 57 billion dollars.
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Again, I would put this near the top of your watch list.
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The other fintech company is Stone.
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Oh boy.
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This is by far the riskiest stock on my list.
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Warren Buffett and Cathie Wood both hold millions of shares of this stock.
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Stone is a one-stop shop that provides small and medium-sized businesses in Brazil the
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Fintech solutions they need to move away from cash and join the digital economy.
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The thing I want to point out about Brazil is that a lower percentage of people have
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internet there than in the US, Canada, and Western Europe, meaning Stone's base-level
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market is still growing year over year as more and more people gain access to the internet.
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Stone has a point of sale solution for accepting credit cards, digital wallets, and QR codes,
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kind of like Square's payment terminal.
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In addition, they help businesses complete fully online transactions without any physical
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devices by generating payment links that can be sent to customers for quick and easy sales.
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Stone can support micro-merchants and very small vendors without actual storefronts or
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websites, which greatly expands their total addressable market.
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That kind of scalability is important to long-term growth.
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However, fintech companies in emerging markets come with real risks.
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For example, in Brazil, merchants have to put up a certain amount of collateral to get
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a business loan or credit line.
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That collateral is registered with one of a few registries in Brazil, made by the Brazilian
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government, so this registry isn't something Stone built, it's a new collateral system
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that they have to integrate with and keep up with as it changes.
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Due to a malfunction in these registries of receivables, merchants could put up collateral
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with Stone, then go apply somewhere else for financing and reuse that same collateral,
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because these registries don't talk to each other.
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That's a big malfunction and it resulted in Stone issuing a lot of non-performing loans,
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which showed up as BIG losses on their balance sheet over the last few quarters.
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That's what caused the start of Stone stock's landslide.
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Other than these non-performing loans though, Stone's business is growing very fast and
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performing very well.
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Compounding that landslide are all the things I've been talking about for the last few weeks,
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like fed tapering, talks of raising interest rates, the pandemic — the same things causing
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ALL of these stocks to slide, which is why I made this episode as well as the last few,
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which I encourage you to check out as well.
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Comment below or tweet me at Ticker Symbol YOU with your thoughts on these stocks and
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ETFs.
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Do you like the safer ones more or the risky ones?
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Were some of these on your watchlist already?
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Do you have your own price targets for them?
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I'm excited to hear your thoughts.
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Either way, the best things you can do right now are: don't panic sell, start proactively
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building up cash and cash-like positions, and fill your watch list with stocks and funds
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you'd be happy holding through landslides like the one we're going through right now.
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Stay informed, stay long, and stay strong.
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Thanks for watching and until next time, this is Ticker Symbol YOU.
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My name is Alex, reminding you that the best investment you can make… is in you.