Despite the deteriorating macro scenario, 3 tech companies have everything to grow

  • Concerns about rising inflation, rising interest rates and a slowing economy.
  • Despite the difficult macro environment, some less targeted growth stocks rallied.
  • Uber, Trade Desk and Pinterest offer potential for growth.

Wall Street stocks are poised to record one of their worst years on record, amid fears of the Federal Reserve’s aggressive plans to raise interest rates to combat persistently high US inflation.

The index is down 14.4% for the year, while the EO, full of tech stocks, is down 17.5% and 25.6%, respectively.

Despite this, the three growth stocks have managed to recover significantly and still offer an optimistic outlook, thanks to the huge potential for their businesses to move forward.

Uber

  • Performance since the beginning of the year: -25.3%
  • Performance from an all-time high: -51.1%

Shares of Uber Technologies (NYSE: ) (BVMF: ) have struggled in 2022, sinking about 25%, as investors flee high-growth tech companies more vulnerable to rising interest rates because of their strained valuations.

After jumping to a record high of $64.05 in February 2021, the stock quickly fell to a low of $19.90 on June 30, but managed to recoup some of those losses. However, they remain about 51% below their recent peak.

daily uber

In my view, the sharp drop in Uber stock offers an attractive buying opportunity for long-term investors, as improving mobility trends and the current strength of the delivery segment have improved the risk-reward ratio.

Indeed, Uber posted impressive numbers in early August, thanks to higher customer demand.

Most importantly, the company posted positive cash flow for the first time in its history and is forecasting a better-than-expected 3Q operating profit.

“This marks a new phase for Uber in its future self-funded growth, with disciplined capital allocation and maximizing long-term shareholder returns,” Uber Chief Financial Officer Nelson Chai said in an earnings release.

Despite the recent rally, Uber shares remain among Wall Street’s favorites, with 41 out of 45 analysts polled by investing.com he recommends buying with very high conviction, with an upside potential of nearly 52%.

Uber - Consensus Estimates

Uber – Consensus Estimates

Trading desk

  • Performance since the beginning of the year: -30.3%
  • Performance from historical record: -44.1%

Trade Desk (NASDAQ: ) (BVMF: ), a company that operates a self-service software platform where clients can buy and manage data-driven digital advertising campaigns, has seen a sharp decline in value this year as its stock has fallen 30%.

However, shares of the digital ad acquisition specialist, which has a market capitalization of $31.2 billion, have seen an impressive rally since hitting a 52-week low of $39 on July 14.

Daily trading desk

Investors who missed out on last year’s strong bull run can consider buying on Trade Desk, thanks to its innovative online ad buying platform. The company’s digital advertising tools enable brands to more easily search audiences across devices, with greater precision in a world without third-party cookies.

“If we continue our execution, we believe we will benefit from this tailwind, just like any company in the world,” said founder and CEO Jeff Green.

The Trade Desk posted solid results, despite numerous macroeconomic headwinds. In addition, the company’s management expressed optimism about the outlook for the coming months, predicting revenue growth of nearly 28% in the third quarter to $385 million.

Not surprisingly, most analysts remain bullish on TTD stock, as research by investing.comwhich found that 15 out of 21 analysts covering the company recommend a buy.

Trade Desk - consensus estimates

Trade Desk – consensus estimates

Pinterest

  • Performance since the beginning of the year: -32.4%
  • Performance from the historical record: -72.6%

Pinterest (NYSE: ) has seen shares fall more than 30% this year as it loses appeal to investors amid concerns about slowing user growth and a worsening macro scenario.

After falling sharply for the year, shares of PINS have rallied sharply since hitting a 52-week low of $16.14 in mid-May.

Activist investor Elliott Investment Management made headlines in July after it revealed it had become the company’s largest shareholder, with a 9% stake.

the daily Pinterest

Despite year-to-date losses, I believe Pinterest stock should continue to rally, thanks to improving fundamentals, stabilizing user growth trends, and greater monetization potential under CEO Bill Ready.

Ready, a former Alphabet (NASDAQ: ) executive and e-commerce expert, took over in June, succeeding co-founder and CEO Ben Silbermann, who is now executive chairman of the board.

“As the industry-leading platform at the intersection of social media, search and e-commerce, Pinterest occupies a unique position in the advertising and shopping ecosystems, and CEO Bill Ready is the right leader to oversee Pinterest’s next phase of growth.” Elliot said in a statement following the company’s Aug. 2 announcement.

vWall Street has a fairly bullish view on PINS, with 33 out of 34 analysts polled recommending a buy or hold on the portfolio, as well as an average price target of $26.17, representing upside potential of 6.4%.

Pinterest - consensus estimates

Pinterest – consensus estimates

Warning: At the time of publication, Jesse had no position in the above assets. The views expressed in this article correspond solely to the opinion of the author and should not be considered an investment recommendation.

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