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Motley Fool Hidden Gems Investing

Diagnosing Stock Drops

Motley Fool Hidden Gems Investing

The Motley Fool

Investing, Business

4.33.1K Ratings

🗓️ 7 January 2023

⏱️ 29 minutes

🧾️ Download transcript

Summary

Just because a stock lost 98% of its value doesn’t mean it's cheap. Sometimes the market becomes efficient. Asit Sharma joins Ricky Mulvey to look at some justifiable reasons why stocks dropped last year and which strong businesses that may have been swept up in the tide. They discuss: - Carvana’s boom and bust, and the takeaways for investors - If Zoom has a sticky product - How Roku is addressing a tougher advertisement landscape - Meta’s valuation, and questions about its leadership - Mindset advice if you want to be a contrarian investor Companies discussed: LULU, ZM, MSFT, CVNA, ROKU, NFLX, META Aswath Damodaran’s blog on Meta: https://aswathdamodaran.blogspot.com/2022/11/meta-lesson-1-corporate-governance.html Host: Ricky Mulvey Guest: Asit Sharma Engineer: Tim Sparks Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

Click on a timestamp to play from that location

0:00.0

So there's no existential threat hanging over Roku.

0:04.5

They can weather this environment that is not their best environment.

0:09.9

At the same time, they keep increasing those key metrics and that's what you want to see.

0:14.8

Can you gain share, can you gain users, can you make them more active during a bad period?

0:20.1

If you've got sort of the solid financial picture to come out of that environment in a

0:25.7

stronger position.

0:27.0

And that's where, again, they may surprise some investors in the future.

0:31.3

I'm Chris Hill and that's Motley Fool's Senior Analyst Asa Sharma.

0:38.5

In a tough environment, some businesses break and some come out stronger on the other side.

0:43.4

Ricky Mulvey caught up with Sharma to talk about some of the most significant stock drops

0:47.6

of 2022.

0:49.4

What grows at all costs meant for a business like Carvana and advice for anyone who really

0:54.8

wants to be a contrarian investor.

1:00.8

So S&P is down more than 20%.

1:03.6

I can't use your to date still early in the year.

1:06.5

S&P 500 is down about 20% year over year.

1:10.3

Nasdaq is down about 34%.

1:12.4

Many stocks are down even more.

1:16.1

And I think my mentality and I think maybe other stock investors are thinking great.

1:21.3

Now I have a chance to buy low, hopefully sell high.

1:24.5

So are you really a contrarian and what's your mindset advice to those folks who are trying

1:29.8

to play that game?

...

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