Better Growth Stock Today: Upstart or Shopify?
Growth stocks have been on a roller-coaster ride in 2022 after enjoying massive gains from the March 2020 pandemic lows through the end of last year. That should come as no surprise given macroeconomic conditions have deteriorated in light of high inflation, increasing borrowing costs, and geopolitical concerns linked to the war in Ukraine. When economic conditions worsen, investors tend to exit positions in high-growth stocks in that many of them bear steep valuation multiples and lack a history of profitability.
Two companies, Shopify (NYSE: SHOP) and Upstart (NASDAQ: UPST), are particularly struggling right now. Not only are they being adversely impacted by macro conditions, but they're also both undergoing transitional phases at the moment. While the timing has been unfortunate, both companies still enjoy long runways for growth in the years to follow. On that note, which of the two stocks, if either, should investors consider buying today?
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Source Fool.com
