These 2 Former Growth Stocks Are Down Over 85%, but They're Not Exactly Bargains
The technology sector of the stock market has spent much of 2022 in bear territory, with many stocks down 20% or more since the beginning of the year. The Nasdaq-100 index, which is made up of 101 companies (most from the tech industry), provides a good indicator of how tech stocks are doing and it's down over 29.5% year to date.
Plenty of stocks in the index declined by significantly larger percentages, with several seeing their valuations slashed by half (or more). The challenge for investors is determining which tech growth stocks are attractive discounts poised to deliver long-term returns, and which are unlikely to recover to their previous highs.
Share prices of Robinhood Markets (NASDAQ: HOOD) are down 85% from their all-time high, and the company's user base and revenue appear to be in structural decline. Peloton Interactive (NASDAQ: PTON) stock is down a whopping 95%, and its business is shrinking overall. Here's why neither stock represents a good value despite the steep losses.
Source Fool.com
