High-growth stocks have tumbled sharply in the last three months.
The NASDAQ Composite Index fell by 15.6% since hitting its peak in November last year.
Rising inflation has been a strong impetus for the US Federal Reserve to hike interest rates, thus reducing the attractiveness of growth companies.
Despite the decline, there are still more than a handful of companies that reported healthy results.
Investors who are seeking opportunity should look for businesses with strong fundamentals and a great track record.
These characteristics should enable investors to identify the resilient stocks that can latch on to catalysts and sustainable trends.
Here are four US stocks that recently reported strong growth in their business.
Fiverr (NYSE: FVRR)
Fiverr operates a platform that matches freelancers with businesses that seek their services.
The company lists skilled freelancers offering digital services in more than 550 categories and as of end-2021, 4.2 million customers have purchased services from freelancers in more than 160 countries.
For its fiscal 2021 full year (FY2021) earnings, Fiverr reported a 57.1% year on year jump in revenue to US$297.7 million.
Active buyers (of services) rose by 23% year on year to 4.2 million, while spend per buyer also increased by 18% year on year to US$242.
Customers are also becoming stickier — for FY2021, repeat buyers made up 59% of total revenue on Fiverr’s platform, up from 55% in the previous year.
The company has guided for around 26% year on year revenue growth for FY2022 as it continues to launch new features for its platform and expand internationally.
DoorDash (NYSE: DASH)
DoorDash operates a food delivery platform that connects thousands of merchants with more than 25 million customers.
The company also operates a logistics platform in the US, Canada, Australia, and Japan.
For FY2021, the food delivery platform reported a sharp 69.4% year on year jump in revenue to US$4.9 billion.
Net loss, however, stayed flat at around US$468 million due to a sharp increase in sales and marketing spend and higher admin costs.
Free cash flow surged more than four-fold year on year from US$93 million to US$455 million.
In terms of operating statistics, DoorDash had smashed records for total orders and marketplace gross order value (GOV).
The fourth quarter of 2021 (4Q2021) saw total orders hit 369 million, up 35% year on year.
GOV climbed by 36% year on year to US$11.1 billion.
Management sees significant growth opportunities in the restaurant category in the US and will spend to improve DoorDash’s competitive advantages.
Amazon (NASDAQ: AMZN)
Amazon is one of the largest e-commerce companies in the world and is worth more than US$1.5 trillion in value.
The company reported a strong set of earnings for FY2021, with net sales climbing by 21.7% year on year to US$469.8 billion.
Operating profit rose by 8.6% year on year to US$24.9 billion while net profit surged by 56.4% year on year to US$33.4 billion.
Amazon’s cloud computing product, Amazon Web Services, or AWS, saw an impressive 40% year on year jump in revenue to US$71 billion.
Meanwhile, the online retailer’s Prime Video service is ramping up its content slate with the September release of The Lord of the Rings: The Rings of Power series.
For the first time since 2018, Amazon will raise the price of a Prime membership in the US, with monthly fees increasing from US$12.99 to US$14.99 and annual memberships costing US$139, up from the current US$119.
Tesla (NASDAQ: TSLA)
Tesla designs, develops and sells high-performance electric vehicles as well as energy generation and storage systems.
The company saw its vehicle deliveries surge by 87% year on year in FY2021, and in the process, reported its best financial results in the past five years.
Tesla reported revenue of US$53.8 billion last year, up 71% year on year, while operating profit more than tripled year on year from US$2 billion to US$6.5 billion.
The electric car manufacturer reported a net profit of US$5.5 billion for FY2021, up 655% year on year, and also generated a free cash flow of US$5 billion.
The company has ambitious plans.
Tesla plans to scale up its manufacturing capacity to achieve a 50% average annual growth in vehicle deliveries in the future.
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Disclaimer: Royston Yang does not own shares in any of the companies mentioned.
