1 Popular Growth Stock Down 74% I'll Be Avoiding in 2023
Investors are coming off one of the toughest years for the technology sector since the dot-com bust in the early 2000s. The Nasdaq-100 index declined by 33% in 2022, and many individual stocks fared even worse than that.
So what changed last year? Inflation surged, which sent interest rates climbing, leading to fears of an economic slowdown across the globe. Investors flocked to safe assets and rewarded profitable companies while shunning high-growth, unprofitable enterprises -- most of which are in the tech industry. This shift led to a drastic decline in valuations.
In some cases, that presents an opportunity to buy quality stocks at a discount, but not all discounts are created equal. Shares of food delivery giant DoorDash (NYSE: DASH) have plunged 74% from their all-time high. However, despite accelerating revenue growth, its net losses are sinking deeper into the red.
Source Fool.com
