Are These Stocks, Down More Than 80%, Worth Buying?
When you see a stock is down 80% or more, it's often a sign that the company is failing or something drastic has changed. But an examination of the businesses of Cloudflare (NYSE: NET), Unity Software (NYSE: U), and Upstart (NASDAQ: UPST), clearly show they are still humming along. And yet the stocks for these three companies have been decimated.
Their drops were caused by one primary factor: overvaluation. These stocks got way ahead of themselves and were richly valued. With the recent broad market sell-off, valuations have returned to a more normal range, but many investors got caught up in the news of large price losses and dumped these companies out of fear rather than a full evaluation of the company.
Should investors now consider adding these three price-deflated stocks to their portfolios? Let's find out a bit more about them and see if we can find the answers.
Source Fool.com
