Many investors have lost their taste for richly valued equities. With inflation at a 40-year high and three or four interest rate hikes on the horizon, consumer spending is likely to grow more slowly (or even decline) in the near term. And that, in turn, will have a negative impact on corporate revenue and profits. So traders have pulled money out of the market, especially where high-growth tech stocks are concerned.
Fortunately, that domino effect has created a buying opportunity for long-term investors. High-quality businesses like Shopify (NYSE: SHOP) and MercadoLibre (NASDAQ: MELI) currently trade a cheaper valuations than they have in years. Yet, global e-commerce sales are expected to grow at an annualized rate of 10.7% to reach $7.4 trillion by 2025, meaning both companies have plenty of room to grow.
Here's what you should know.
For further details see:
Tech Sell-Off: 2 Bargain Growth Stocks to Buy Now and Hold Forever