It’s been a turbulent 2022 for growth stock investors as the combination of high inflation and surging interest rates dampened sentiment and led to lower valuations.
The NASDAQ Composite Index, known as the bellwether technology stock index, lost a third of its value last year.
Many stocks were beneficiaries of the pandemic boost and saw a surge in business that soon tapered off.
In the ensuing sell-off, babies were also thrown out with the bathwater.
If investors looked carefully, they can still find businesses that posted healthy growth.
Amid the carnage, there may be attractive bargains to scoop up if the company can continue to ride on sustainable trends and long-term tailwinds.
Here are four US stocks that may have lost more than half their value in 2022, but could turn out suitable for your buy watchlist.
Tesla (NASDAQ: TSLA)
Tesla is an automotive and clean energy company that designs and manufactures electric vehicles and battery storage products.
Its share price has fallen 65% in 2022 from US$352.26 to US$123.18.
For the third quarter of 2022 (3Q2022), the company generated US$21.4 billion of revenue , up 56% year on year.
Tesla’s operating margin improved from 14.6% in 3Q2021 to 17.2% in 3Q2022, leading to an 84% year on year surge in operating profit to US$3.7 billion.
Net profit doubled year on year from US$1.6 billion to US$3.3 billion.
Total vehicle production for 3Q2022 rose 54% year on year to 365,923 units, of which 343,830 were delivered.
4Q2022 saw 439,000 vehicles produced with 405,000 delivered, and overall deliveries rose 40% year on year to 1.31 million units.
However, the electric car maker recently suspended production at its Shanghai plant without giving a reason.
Elsewhere, Bloomberg reported that Tesla is also firming up plans to build production facilities in Indonesia with a capacity of one million units.
Zoom Video (NASDAQ: ZM)
Zoom Video offers a videoconferencing platform as a communication tool for individuals and corporations to connect.
The company was a pandemic darling but has since seen its share price plunge by 63.2% in 2022 to US$67.74, but has since recovered slightly to US$70.
For the first nine months of fiscal 2023 (9M2023), revenue inched up 8.1% year on year to US$3.3 billion.
However, net profit plunged by 76.5% year on year to US$207.7 million because of higher operating expenses and a loss on its strategic investments.
Despite the lower profit, Zoom Video still generated a healthy free cash flow of US$992.5 million, down just 22% year on year from 9M2021’s US$1.27 billion.
Zoom also reported a trailing 12-month net dollar expansion rate of 117% for 3Q2023.
The number of enterprise customers has also been increasing, going from 183,700 a year ago to 209,300.
At its Zoomtopia Investor Day event held in November last year, Zoom identified a potential total addressable market of US$125 billion by 2026, giving the company significant room for further growth.
DocuSign (NASDAQ: DOCU)
DocuSign offers electronic signatures to manage electronic agreements as part of its DocuSign Agreement Cloud platform.
The company’s software has over a billion users worldwide with around 1.3 million paying customers.
DocuSign’s share price has tumbled by 63.6% in 2022 to end the year at US$55.42.
3Q2023 saw revenue jumping by 18% year on year to US$645.5 million with subscription revenue making up close to 97% of total revenue.
Billings increased by 17% year on year to US$659.4 million and the company generated a free cash flow of US$36.1 million for the quarter.
DocuSign has introduced new features in the latest iteration of its cloud software.
These include Elastic Signing, which offers a seamless and quick personalised signing experience, and DocuSign Notary, which has digital certificates attached to each notarial transaction.
Match Group (NASDAQ: MTCH)
Match Group is a company operating a range of dating apps, with popular brands such as Tinder, PlentyOfFish, OkCupid, Meetic, and Match.
Match Group’s share price has skidded by 68.6% in 2022 to close at US$41.49.
For the first nine months of fiscal 2022 (9M2022), the company saw revenue rise 10% year on year to US$2.4 billion.
A sharp jump in impairment and amortisation of intangible assets led to its net profit tumbling by close to 38% year on year to US$277.4 million.
Despite the drop, the number of paying customers inched up 2% year on year to 16.5 million for 3Q2022.
The rate per payer (i.e. amount spent per customer) remained flat year on year at US$16.02.
Match Group had suffered significant negative foreign exchange exposure for its latest set of financials.
For context, during 3Q2022, revenue would have grown 10% year on year instead of 1% on a constant currency basis, while the rate per payer would have increased by 9% year on year.
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Disclaimer: Royston Yang does not own shares in any of the companies mentioned.
