Down 40% or More, These Beaten-Down Cash-Rich Companies Can Keep Growing Even If Things Get Worse
The stock market has taken a nasty fall this year. Investors are increasingly concerned that the Federal Reserve's actions to combat red-hot inflation will put the economy in a tailspin. That would make it even harder for many companies to grow in the near term since it's getting more expensive to access the debt and equity capital they need for expansion.
However, that's not an issue for companies like CrowdStrike Holdings (NASDAQ: CRWD), Intuit (NASDAQ: INTU), and Zoom Video Communications (NASDAQ: ZM). While their stock prices are down more than 40% from their peaks, making it much more expensive to raise equity capital, that won't limit them since they generate a lot of cash and have cash-rich balance sheets. Because of that, they can keep growing even if market conditions worsen.
Leading cloud security company CrowdStrike has been growing like gangbusters. Its revenue was up 58% in the second quarter of its 2023 fiscal year. The company expects to continue growing briskly, driven by demand for its cloud-based cybersecurity solutions.
Source Fool.com
