Growth stocks were hit particularly hard in the downturn equity markets experienced last year. Considering the market is far from fully recovered, there are still plenty of growth-oriented companies trading at much lower levels than they were a year ago. But while some of these stocks are worth investing in, others are best left alone, given their questionable prospects. Let's consider two growth stocks, one in each category: Netflix (NASDAQ: NFLX) and Cronos Group (NASDAQ: CRON) . Here is why the former is a buy right now, while the latter isn't worth the trouble.
Last year, Netflix's stock was battered and bruised as the company faced increasing competition and slower (sometimes non-existent) use growth. But the streaming specialist is doing well this year, with shares up by 24%. The broader market rebound is undoubtedly helping, but the company's fourth-quarter results helped, too.
Netflix grew its revenue by 1.9% year over year -- or 10% in constant currency -- to $7.9 billion. Also, the company added 7.66 million new net accounts, bringing its total to 230.75 million, up 4% compared to the year-ago period. Netflix may or may not keep its momentum for the rest of the year, but for long-term investors, there is much to be excited about.
For further details see:
1 Growth Stock to Buy in 2023, and 1 to Avoid at all Costs