The Nasdaq Is Plunging: 4 No-Brainer Stocks to Buy With $200 Right Now

The Nasdaq Is Plunging: 4 No-Brainer Stocks to Buy With $200 Right Now

When there’s panic on Wall Street, there’s often opportunity for patient investors.

There’s no denying that things are ugly right now for the investing community. Through this past weekend, the iconic Dow Jones Industrial Average , broad-based S&P 500 , and technology-dependent Nasdaq Composite ( ^IXIC ), were all, respectively, mired in a bear market with peak-to-trough losses of between 22% and 34%.

Although the magnitude of unrealized losses during bear markets can be unnerving to tenured and new investors alike, history has shown time and again that sizable declines in the broader market are the perfect opportunity for patient investors to pounce. That’s because every double-digit percentage drop in the major indexes, including the Nasdaq, has eventually been put in the rearview mirror by a bull market rally. Image source: Getty Images. Best of all, you don’t need to have a mountain of cash in your bank account to build wealth on Wall Street. Since most online brokerages have done away with commission fees and minimum deposit requirements, any amount of money — even $200 — can be the ideal amount to put to work.

If you have $200 ready to invest, which won’t be needed to pay bills or cover emergencies, the following four stocks stand out as no-brainer buys with the Nasdaq plunging. Etsy

The first surefire stock to buy with $200 as the Nasdaq plummets is specialty e-commerce company Etsy ( ETSY 4.85%). Although retail stocks are taking it on the chin with interest rates rising rapidly and historically high inflation threatening to reduce the purchasing power of the lowest-earning decile of workers, Etsy’s unique operating model can propel its valuation significantly higher over time.

The biggest difference between Etsy and virtually every other online retail marketplace is personalization. Whereas Amazon is the volume leader, no other online retailer can offer the personalization or customization that Etsy can provide. That’s because it predominantly deals with small businesses and self-proprietors. In other words, Etsy is truly in a class of its own within the online retail landscape.

What’s more, Etsy hasn’t been shy about reinvesting in its business — and the rewards have been plentiful. The introduction of video ads, as well as improved search functionality, produced a 248% increase in habitual buyers over the trailing three-year period, through June 30, 2022. “Habitual buyers” are consumers who make at least six purchases totaling $200, in aggregate, over a trailing-12-month period. Growing the number of habitual buyers on the platform is what allows Etsy to increase fees on sellers.

As one final note, Etsy’s five-year ad revenue growth (516%) has more than doubled its marketplace gross merchandise sales increase (253%) over the same time frame. This suggests merchants are seeing the value of Etsy’s platform, and they’re willing to pay a premium to get their message in front of users. Palo Alto Networks

Another no-brainer stock to buy right now with $200 as the Nasdaq plunges is cybersecurity stock Palo Alto Networks ( PANW 3.60%). Despite recessionary fears weighing on growth stocks, Palo Alto has the tools and intangibles needed to overcome these headwinds.

The beauty of cybersecurity is that it’s become a basic necessity service over time. No matter how poorly the U.S. economy or stock market perform, there are always going to be hackers and robots trying to steal sensitive data. This means subscription-driven operating models tend to generate very predictable cash flow.

What makes Palo Alto special is its four-year (and counting) transformation that’s seen the company move away from physical firewall products and toward higher-margin, cloud-based software-as-a-service subscriptions. Over the span of five fiscal years (the company’s fiscal year ends July 31), Palo Alto’s percentage of revenue derived from subscriptions has grown from less than 60% to just over 75% . The move away from physical firewall products should help the company reduce the revenue lumpiness associated with physical product replacement cycles.

Also, don’t overlook Palo Alto Networks’ penchant for making smart acquisitions . Bolt-on acquisitions are expanding Palo Alto’s service offerings, and improving its cross-selling opportunities. It’s an ideal growth stock to weather the bear market. Image source: Getty Images. Green Thumb Industries

A third no-brainer stock to buy with $200 during the Nasdaq plunge that’s a bit more under the radar is U.S. marijuana stock Green Thumb Industries ( GTBIF 10.99%). Even though pot stocks lost their buzz due to the inability of Congress to federally legalize weed, state-level legalizations are providing more than enough impetus for multi-state operators (MSOs) like Green Thumb to thrive.

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