Subtitles section Play video Print subtitles Investors threw more money into the stock market in the first 5 months of 2021 than in the previous 12 years combined. Everything was growing so tremendously that no one could stand aside and watch how the world is making money. Even kids jumped in and traded crypto, at least. It felt like the entire world has been trading crypto in the last 2 years. People saw crypto as a way to finally make a few million dollars and escape the rat race. Especially since we had a few crypto millionaires who earned fortunes on dogecoin. Crypto enthusiasts made a strong case that if dogecoin reaches a dollar, we are all going to become super-wealthy. However, now it doesn't even worth 10 cents. But nothing illustrates more accurately the last 2 years than the case with Gamestop. What happened there was only possible in theory and should have never happened! But it happened! Through a Reddit form, retail investors collectively pushed the stock price so dramatically that hedge funds with billions of dollars and the best analysts under their supervision couldn't defend themselves. In fact, they lost 13 billion dollars. It got so bad that brokers literally started preventing retail investors from buying GameStop shares. This case is going to go down in history. But the roller coaster is over. Now, no one wants to invest in the stock market. The bright days are over. Everyone is selling off even though we have massive inflation. No one wants to hold stocks that are losing value faster than a crashing plane. Many people might be exhausted seeing their portfolios down by 30 or 50 percent, but let me calm you down because these are normal periods in the stock market. Besides long-term investors, there are traders who consistently earn no matter if the market is rising or falling, and then there are periods when it's time to sell. A rise in interest rates is the number one indicator. So, we just had a period of a massive sell-off. The market will bounce back. The good news is that the market is filled with undervalued stocks. Most tech giants will gain back their values, but the question that interests me the most is - what are the most undervalued stocks? Which stocks lost most of their value? And which ones will not just recover but will thrive? We will answer all of these questions and many but before we do that, here is a little disclaimer, this is not financial advice, and everything that's said in this video is for educational and entertainment purposes. Netflix Netflix isn't having its best days. The stock fell so much that even Bill Ackman got rid of all its Netflix stocks, losing 430 million dollars. In the last two years, the pandemic was the ideal reason for people to sign up for Netflix. That's why the company experienced some of its best years ever. You don't have many entertainment options sitting at home. You can either play video games or watch something, and Netflix solves one of these problems. The stock price almost doubled during the pandemic and peaked at 690 dollars in November. However, that's when the good news ended. Since then, the stock plummeted first by 42 percent and then by 55 percent, bringing it down by a total of 72 percent. The stock is back to where it was in December 2017, as if it didn't gain anything in the last 5 years. The only difference is that, back then, it had around a hundred million subscribers, and now it has 220 million subscribers. In fact, if you look at its P/E ratio, it's 17, which means it will take the company 17 years to pay you back. That number sounds big, but for a tech company, that's low since tech companies, on average, have a 25 to 30-year P/E ratio, and some, like in the case of Tesla, have 90. Yes, of course, a drop in subscribers is worrying investors that the company has reached its peak, but if you look at it objectively, it hasn't. It's just the beginning. 2. Pinterest Pinterest is a weird social media platform. It's not popular like Instagram or TikTok, but it has always been there. You either use Pinterest and know how helpful it is or don't and have no clue why anyone would ever use it. It had its momentum during the pandemic, where the stock grew by almost 400 percent, but since then, it has lost almost all of its gain. It's even lower than its pre-pandemic level of 22 dollars per share. Pinterest has also been losing subscribers since its peak of half a billion users in 2021, but it is nowhere close to becoming irrelevant. It's the place where designers, photographers, artists, and many more come for ideas. Do you have a photoshoot and looking for ideas? Pinterest is the best place for that! Designing your house? Pinterest is the place to go for ideas! Looking for an outfit? Pinterest is the place! Of course, Instagram and google images are also an option, but Pinterest is far better. Its PE ratio is 35, which is not bad for a stock that has been in the market since 2019. What separates Pinterest from the rest is that its ads are almost indistinguishable from other posts on the platform. If people hate ads on social media, then it's a completely opposite story on Pinterest. Pinterest growth might be much slower than that of Instagram or TikTok, but its gradual growth makes it more predictable and stable. 3. coinbase It might not sound convincing to suggest Coinbase if you take at what's happening to crypto. Some coins that looked like they had a bright future literally vanished. Leave alone the number of scams that are taking place in this industry. Regardless, crypto has a future, and it's going to play a much bigger role with each passing year since moving around money with crypto is far more convenient than traditional banks. Coinbase is one of the largest crypto exchanges in the world, and now it's down by 80 percent since its peak. Will it go back to 350 dollars as it was at its peak? Probably yes, but most likely not this year. 4. Nvidia Nvidia was one of the best-performing stocks in the last two years. The stock grew by over 500 percent. That's not surprising since the pandemic created a huge shortage of chips and graphic cards in the market. In fact, one of the main reasons for high inflaiton is that there aren't enough chips to produce electronics since chips are the most important part of any tech. Everyone thought we were about to solve the problem, but the war in Ukraine and the new variant of the virus kept creating supply chain problems. The stock definitely suffered in the last 6 months since it's down by 50 percent, but the demand for chips is still there. The company has already beat analyst expectations for sales and earnings, but the massive sell-off is still pushing the price down. However, as they solve their supply chains, revenues are going to soar since the demand for chips isn't just high, but it's soaring. 5. Moderna Long term Not a single company received as much attention as Moderna to the point where it became a household name. But as the world moved on from covid, so did investors from Moderna. It's down by 70 percent since its peak. The stock doesn't seem like it will recover. However, the truth is that Moderna is the first company to prove that mRNA tech works, and that's a big deal since this technology makes it much faster and cheaper to create and test new drugs. People might have started paying less attention to the pandemic, but that doesn't mean we are not going to face new viruses and diseases. Moderna sold $5.9 billion, tripling its vaccine sale in the first quarter of 2022, blowing out revenue and profit expectations. The world is going through some fundamental changes. The geopolitical changes are affecting everyone. From 1990 to 2020, we had a world order that everyone wanted to keep since everyone saw an interest in keeping it. However, that began to change when the US failed to handle the most recent pandemic, and the war in Ukraine is challenging the United States' global dominance. It disrupts supply chains, creates massive inflation, and makes the future uncertain. The next 2 years will either enforce the Current world order led by the United States or reshape it. So it's normal that a lot of companies are going to go throw some dark and difficult times. A global recession in such a period is inevitable. These will most likely be going to suffer further, but if they survive the storm, they will most definitely grow much bigger. Thanks for watching, and I will see you at the next one.
B1 pinterest stock crypto moderna percent pandemic 5 Massively UNDERVALUED Stocks To Buy in 2022 3 0 Summer posted on 2022/10/14 More Share Save Report Video vocabulary