The Nasdaq is down 22% since the turn of the year. This is largely because investors have turned away from tech and growth stocks, which form the basis of the index,. Some Nasdaq-listed firms have seen billions wiped off their valuations. Netflix (NASDAQ:NFLX) is one of them, falling from around $700 a share in the autumn, to less than $200 a share in April. It’s down 63% in a year while the Nasdaq as a whole is down almost 10%.
I don’t invest all that frequently in the Nasdaq. One reason is, like other investors, I’m moving away from growth stocks at present. Another more practical reason is that I’m charged an exchange rate fee for purchasing dollar-denominated shares. Despite this, here are three Nasdaq-listed stocks I’m looking at for my portfolio.
Netflix
Netflix shares have fallen massively this year. First the tech sell-off, then a disappointing trading update in which it highlighted falling subscriber numbers, and now investors are suing it for allegedly misleading the market. But Netflix remains a very profitable business. It’s price-to-earnings ratio was around 17 for the last four quarters. That’s not bad for a tech stock.
Operating income was $6.2bn in 2021 and I see this growing if the firm can sustain subscriber numbers while reducing content spending. This jumped massively between 2020 and 2021. Economising on such spending could improve margins. If I were to invest, I’d be a little concerned about competition eating into Netflix’s market share. As a consumer, I actually prefer Amazon‘s offering and BritBox.
Novavax
I was fortunate to invest in Novavax (NASDAQ: NVAX) as it rose during the pandemic. In the end, I lost faith in the company and its Covid-19 vaccine — its first commercialised product. But now I’m considering it again. It’s trading below its 2021 highs, and I still think there’s appetite for an effective non-mRNA vaccine in the battle against Covid-19. Novavax projects $4bn to $5bn in revenue for 2022. According to analysts, vaccine sales should account for $3.5bn in revenue.
The company is waiting for US regulatory approval, where green-lit shots include those made by Pfizer, Moderna and Johnson & Johnson. The vaccine has been approved around the world, including in the UK and EU, although that’s no guarantee it’ll be given access to the potentially lucrative US and that remains a risk.
Oriental Culture Holding
Oriental Culture (NASDAQ: OCG) is by far the smallest company on this list. The firm, based in China, provides a platform for the online trade of artworks and collectibles. In its recently released full-year results, OCG announced that operating revenues increased 115.6% to $37.6m in 2021. Gross profit rose 137.7% to $35.2m, up from $14.8m in 2020.
The growth of the Chinese art market is one reason I’m looking to add this stock to my portfolio. Revenue from fine art sales in China grew 43% to $5.9bn in 2021, with 63,400 pieces sold, according to Artron, a Chinese art sector group. This figure puts China ahead of the US by revenue generated from fine art sales. However, it’s worth noting that there could be some short term pain for the Chinese art market in 2022 with the current Covid-19 lockdowns.
