This year has certainly been one for the record books. The major market indexes began their record-setting coronavirus-induced swoon on Feb. 19, and the Dow Jones Industrial Average eventually declined 27%, the S&P 500 dropped 34%, while the tech-heavy Nasdaq Composite lost about 30%. Then the major indexes began to climb, eventually rising 56%, 60%, and 76%, respectively, from their March bottoms through Sept. 2.
Over the past week, however, the market has been…
firmly in decline mode, with the Dow, S&P, and Nasdaq falling 5%, 7%, and 10%, respectively, since hitting their peaks last week. It’s important to remember that markets rise and fall, and the current retrenchment is to be expected after the surprisingly strong bull run that began in March.
With that as a backdrop, let’s look at three stocks that are worthy of investors’ hard-earned money, particularly since these companies are significantly cheaper than they were just last week, and could be even more so if the current market declines continue.
1. Twilio: a crucial communication link
Millions of developers worldwide have embedded Twilio‘s (NYSE:TWLO) communications technology in their own consumer-facing apps, rather than reinvent the wheel. These tools help companies communicate with their customers using channels including text, chat, video, and email.
In fact, you’ve probably used Twilio’s technology without even knowing it. Those updates about the status of your food delivery? The online chat you had with a customer service rep? The real-time alert from your rideshare provider? They were, in all likelihood, powered by Twilio’s infrastructure.
The need to stay connected with customers has taken on even greater importance during the pandemic, and business is booming. In the second quarter, Twilio’s revenue grew 46% year over year, while its losses edged lower. The company continued to attract new customers, with its client base of more than 200,000 climbing 24%. Twilio continued to expand its relationship with existing customers, who spent 32% more on average than they did last year.
This could be just the beginning. Twilio produced revenue of $1.13 billion in fiscal 2019, which is a drop in the bucket compared with the company’s total addressable market, which is estimated at $40 billion.
Forward-looking investors can scoop up Twilio at a bargain: The stock is currently selling at a 15% discount to just a week ago.
2. Fastly: speeding up apps and websites
Arguably, nothing makes potential customers abandon a website faster than slow load times. That’s where Fastly (NYSE:FSLY) comes in. The company’s strategically placed edge cloud platform forms a state-of-the-art content delivery network (CDN) that helps its customers reduce the lag and supercharge response times. Like its name implies, Fastly helps deliver faster service for a variety of applications, including websites, apps, photos, videos, and more.
The pandemic has accelerated the need for Fastly services as education shifted to remote learning, brick-and-mortar stores pivoted to e-commerce, patients transitioned to telehealth, and streaming video saw a boom in adoption. The common thread among these diverse offerings is the need for the lightning-fast connection and response times that Fastly’s technology provides.
The company has expanded to…
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