1 Growth Stock Down 42% to Buy Right Now
Investors could bolster their portfolio returns by focusing on businesses that have outsized growth prospects. As sales rise and market share grows, higher profits could be on the way.
Airbnb (NASDAQ: ABNB) is a company that fits the description. Yet, shares of the home accommodation business are currently trading 42% below their peak price in February 2021. Could this sizable discount mean that now is a good time to buy the growth stock? Let's take a closer look.
As a two-sided marketplace that connects hosts with travelers, Airbnb benefits from having a network effect. As more hosts list their dwellings on the site, travelers benefit because there are greater choices. And as the number of customers increases, hosts stand to gain from a bigger likelihood of renting out their property and generating revenue.
Source Fool.com
