VEEV

Veeva Systems Inc.

164.88
USD
0.04%
164.88
USD
0.04%
152.04 327.78
52 weeks
52 weeks

Mkt Cap 22.86B

Shares Out 138.66M

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3 Stocks I'm Buying During a Tech Stock Correction

It can be mentally and emotionally taxing to invest while stocks are falling. During a downturn, many investors simply decide to pack it up and stop investing. However, investing during a correction -- when stocks have been beaten down immensely and are now trading at discounts -- can be the time you find your best long-term investments. The Nasdaq Composite index has dropped 18% year-to-date, while these three tech stocks have plummeted between 10% and 64% over the same period. At these prices, here's why you should consider buying MercadoLibre (NASDAQ: MELI), Roku (NASDAQ: ROKU), and Veeva Systems (NYSE: VEEV) while they are at a discount. 1. MercadoLibre MercadoLibre has often been called the Amazon (NASDAQ: AMZN) of Latin America, but MercadoLibre has seen tremendous success in one category that Amazon hasn't: fintech. Yes, MercadoLibre has a thriving e-commerce platform in Latin America that sold 275 million items in Q2, but what's really exciting is its digital payments platform. Mercado Pago processed over $30 billion in total payment volume in Q2, representing an 84% year-over-year increase. With over 38 million active users, Pago is becoming one of the top dogs in the fintech space in Latin America. This hypergrowth segment, along with the company's steady e-commerce success, helped total revenue soar 56% year-over-year in Q2 to $2.6 billion, which is stellar for a company at this scale. However, there's even more room to flourish for MercadoLibre. The company has 84 million active users across its entire ecosystem, but Latin America has over 650 million citizens. With this much potential to expand its user count and drive higher engagement, MercadoLibre could be a big winner over the long haul. At just 5.9 times sales, you can get MercadoLibre at a historically low valuation as well. With its dominance in a lucrative, untapped market, you won't want to miss out on this bargain growth stock while shares are down. 2. Roku Roku is also trading at a historically low valuation. The streaming platform trades at just 3.7 times sales -- its lowest price since 2017. However, that's because the company is facing some rough short-term headwinds. Roku makes a sizable chunk of its revenue from advertising on its streaming platform. However, Roku has been left in a tough spot as a recession looks more likely and businesses have started to cut back on ad spending. In Q2, the company saw revenue rise just 18% year-over-year to $764 million, and for Q3 2022 management expects only a 3% jump compared to the year-ago period. The short term could be rocky for Roku, but if it can make it out of this tough economic environment, the company could see smoother sailing over the long haul. Management noted that, as the economy recovers, advertisers will start to bring back spending on platforms where the return on investment is highest. Considering Roku is the leading streaming platform in North America with over 63 million active accounts and almost 21 billion hours streamed in Q2, it could prove to be the best value for these advertisers for TV advertising. Therefore, Roku could see a sharp bounce back. If Roku can maintain its leadership and keep engagement high during this economic environment, this top dog could see a healthy recovery, making shares a bargain right now. 3. Veeva Systems While it can certainly be lucrative to make riskier investments like Roku, you should also balance it out with more stable investments like Veeva Systems. Veeva is the market-leading cloud provider for life sciences companies, helping pharmaceutical businesses with everything from drug testing to marketing. Its services are critical to its customers: Once you shift to a digital cloud platform like Veeva, it would be hard to move back to manual processes to manage data and information, especially when regulatory compliance is involved. As a result, Veeva generated over $505 million in revenue in its first fiscal quarter (which ended April 30, 2022). This represented an increase of just 16% versus the year-ago period -- but what Veeva lacks in growth, it makes up for with profitability. On a trailing-12-month basis, the company sports a 21% net income margin and a 40% free cash flow margin. Since Veeva's products are mission-critical and it's unlikely to see demand soften during an economic downturn, this company could thrive over the short term. Additionally, Veeva has lots of money to invest in its market leadership to capitalize on the $13 billion opportunity ahead of it, making the long haul look appealing too. Veeva looks like a smart stock to buy during this tech stock correction with this impressive combination of stability and potential. 10 stocks we like better than MercadoLibre When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* They just revealed what they believe are the ten best stocks for investors to buy right now... and MercadoLibre wasn't one of them! That's right -- they think these 10 stocks are even better buys. *Stock Advisor returns as of July 27, 2022 John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Jamie Louko has positions in Amazon, MercadoLibre, Roku, and Veeva Systems. The Motley Fool has positions in and recommends Amazon, MercadoLibre, Roku, and Veeva Systems. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Today’s Big Picture Asia-Pacific equity indexes ended today’s session down across the board. India’s Sensex ended the day essentially flat, down 0.06%, China’s Shanghai Composite and Australia’s ASX All Ordinaries declined 0.54% and 0.55%, respectively while Japan’s Nikkei fell 0.65%, Taiwan’s TAIEX dropped 0.74% and South Korea’s KOSPI declined 0.90%. Hong Kong’s Hang Seng led the way, down 1.96% on a broad selloff led by Health Technology and Health Services names while Transportation and Communications sectors provided the only relief. By mid-day trading, major European equity indices are down across the board and U.S. futures point to a positive open later this morning. At 8:30 AM ET, the much anticipated July Consumer Price Index (CPI) report was released: The headline figure for the month was expected to fall to 8.7% from June’s blistering 9.1% reading with core CPI that excludes food and energy ticking higher to 6.1% in July vs. 6.0% the prior month. The actual numbers show that inflation hit 8.5%, and core inflation was 5.9%. With the national average retail price for a gallon of gas falling through late June and July from its June 14 high of $5.016 per gallon per data from AAA, forecasters had expected the month over month decline in the headline CPI for July. The July Employment Report also showed wage inflation ran hotter than expected during the month. Let’s also keep in mind that we will be facing a “wash, rinse, repeat” cycle when it comes to inflation data and expectations for the Fed given tomorrow’s July Producer Price Index report. Data Download International Economy Producer prices in Japan rose by 8.6% YoY in July, compared with market forecasts of 8.4% and following an upwardly revised 9.4% the prior month. While marking the 17th straight month of producer inflation, the latest reading was the softest since last December. China's annual inflation rate rose to 2.7% in July from 2.5% in June and compared with market forecasts of 2.9% but even so the July figure marked the highest reading in the last year. The country’s Producer Price Inflation figure for July eased to a 17-month low of 4.2% YoY from 6.1% the prior month and less than the market consensus of 4.8%. Annual inflation rate in Germany was confirmed at 7.5% YoY for the month of July, down slightly from June’s 7.6% reading but still above the March and April figures of 7.3%-7.4%. The annual inflation rate in Italy slowed to 7.9% YoY in July from June’s 8% reading matching expectations for the month. While energy prices declined, prices for food and transportation rose at a faster pace. Domestic Economy This morning we have the usual Wednesday weekly reports for MBA Mortgage Applications and Crude Oil Inventories from the U.S. Energy Information Administration. At 10 AM ET, Wholesale Inventories for June will be published, and the figure is expected to rise 1.9%. While investors and economists will keep more than a passing interest in those reports and data, as we discussed above, it will be the July Consumer Price Index report at 8:30 AM ET that will shape not only how the US stock market opens today, but also expectations for the Fed’s next course of monetary policy action. The U.S. Energy Information Administration (EIA) expects domestic production of crude oil, natural gas and coal will all increase next year compared with this year. It forecast US crude production rising 6.7% to an all-time annual high 12.7M bbl/day in 2023 from 11.9M bbl/day in 2022, US natural gas output climbing to 100B cubic feet (cf)/day from 97B cf/day, and US coal production inching up to 601M short tons in 2023 from an expected 599M this year. The EIA also modestly increased its 2022 average nationwide gasoline price forecast to $4.07/GALLON vs. $4.05 if called for last month. It now also sees 2023 prices at $3.59/GAL vs. its previous forecast of $3.57. Markets Stocks continued in their holding pattern waiting for the latest CPI print save for some fundamental stories pushing Technology names and small caps around. The Dow and the S&P 500 were down slightly at 0.18% and 0.42%, respectively while the Nasdaq Composite dropped 1.19% and the Russell 2000 closed down 1.46% on the day. Energy names led the way yesterday but were overpowered by Technology and Consumer Discretionary sectors. Here’s how the major market indicators stack up year-to-date: Dow Jones Industrial Average: -9.81% S&P 500: -13.51% Nasdaq Composite: -20.14% Russell 2000: -15.83% Bitcoin (BTC-USD): -52.08% Ether (ETH-USD): -55.38% Stocks to Watch Before trading kicks off, CyberArk (CYBR), Fox Corp. (FOXA), Jack in the Box (JACK), Nomad Foods (NOMD), Vita Coco (COCO), Tufin Software (TUFN), and Wendy’s (WEN) will be among the companies issuing their latest quarterly results and guidance. At 9 AM ET, Samsung (SSNLF) will hold its Galaxy Unpacked 2022 at which it is expected to introduce new Galaxy foldable smartphone models, a new Galaxy Watch, and Galaxy Buds. Shares of advertising technology platform company The Trade Desk (TTD) jumped after the company reported quarterly results that topped expectations and guided current quarter revenue above the consensus forecast. The RealReal (REAL) reported a smaller than expected bottom line loss for its June quarter as revenue for the period rose 47.2% YoY to %154.44 million, topping the $153.99 million consensus. However, the company issued downside guidance for both the current quarter and 2022. Revenue for the September quarter is now expected to be $145-$155 million vs. the $164.3 million consensus; for the full year of 2022, revenue is forecasted to be $615-$635 million vs. the $653.7 million consensus. Shares of Coinbase Global (COIN) moved lower after it reported June quarter results that missed top and bottom line expectations. Revenue for the quarter fell 63.7% YoY as Total trading volume fell 53.0% YoY and 29.8% sequentially to $217 billion. Monthly Transacting Users (MTUs) grew 2.3% YoY but fell 2.2% sequentially to 9.0 million. For the current quarter, Coinbase sees the number of MTUs trending lower sequentially and total trading volume to be lower compared to the June quarter. Shares of Sweetgreen (SG) tumbled in aftermarket trading last night after the company missed quarterly revenue expectations, lowered its 2022 forecast, announced it will lay off 5% of its workforce, and downsize to smaller offices. ChipMOS TECHNOLOGIES (IMOS) reported its July revenue was $65.1 million, a decrease of 19.4% YoY and down 7.7% MoM. Taiwan Semiconductor (TSM) reported its July revenue increased 49.9% YoY to NT$186.76 billion, which equates to a 6.2% MoM improvement. Electric vehicle subscription startup Autonomy placed a $1.2 billion order for 23K electric vehicles with 17 global automakers, including BMW (BMWYY), Canoo (GOEV), Fisker (FSR), Ford (F), General Motors (GM), Hyundai (HYMTF), Lucid Group (LCID), Mercedes-Benz (DDAIF), Polestar (PSNY), Rivian (RIVN), Stellantis (STLA), Subaru (FUJHY), Tesla (TSLA), Toyota Motor (TM), VinFast, Volvo Car (VLVOF) and Volkswagen (VLKAF). IPOs As of now, no IPOs are slated to be priced this week. Readers looking to dig more into the upcoming IPO calendar should visit Nasdaq’s Latest & Upcoming IPOs page. After Today’s Market Close Bumble (BMBL), CACI International (CACI), Coherent (COHR), Dutch Bros. (BROS), Red Robin Gourmet (RRGB), and Walt Disney (DIS) are expected to report their quarterly results after equities stop trading today. Those looking for more on which companies are reporting when, head on over to Nasdaq’s Earnings Calendar. On the Horizon Thursday, August 11 Germany: Thomson Reuters Ipsos Monthly Global Primary Consumer Sentiment Index - August US: Weekly Initial & Continuing Jobless Claims US: Producer Price Index – July US: Weekly EIA Natural Gas Inventories Friday, August 12 Japan: Thomson Reuters Ipsos Monthly Global Primary Consumer Sentiment Index - August China: China Thomson Reuters Ipsos Monthly Global Primary Consumer Sentiment Index - August Eurozone: Industrial Production - June US: Import/Export Prices – July US: University of Michigan Consumer Sentiment Index (Preliminary) – August Thought for the Day “The release date is just one day, but the record is forever.” ~ Bruce Springsteen Disclosures Tufin Software (TUFN), CyberArk (CYBR) are constituents of the Foxberry Tematica Research Cybersecurity & Data Privacy Index Canoo (GOEV), Fisker (FSR), Lucid Group (LCID), Rivian (RIVN), Tesla (TSLA), Vita Coco (COCO) are constituents of the Tematica BITA Cleaner Living Index Canoo (GOEV), Fisker (FSR), Lucid Group (LCID), Rivian (RIVN), Tesla (TSLA), Vita Coco (COCO) are constituents of the Tematica BITA Cleaner Living Sustainability Screened Index The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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