Crashing Stocks with Strong Financials | 2022 Market Correction

Hi! In this video I did a stock analysis for 8 different crashing stocks that belong to businesses that have had increased revenues and increased net income from 2020 to 2021. All of these stocks have fallen more than 40% from their all time highs, which could present a potential buying opportunity or a red flag to sell. I used a discounted cash flow model on Microsoft Excel to figure out what the intrinsic value of these different stocks would be based on the projected free cash flow for the business. I typically look at the financial statements and the annual reports of businesses that I make videos on, but for this video I did a more surface level analysis of these individual stocks by looking at their P/E ratios as well as their current share price relative to their all time highs.

Economic News

7.5% inflation (Highest since 1982)
Russia invading Ukraine
Chinese Tech Regulation from the CCP
Global Supply chain disruptions

All businesses listed had increased revenues and net income for 2021 in comparison to 2020 with the exception of one.

Meta Platforms - Down 48% from all time highs (P/E: 14.53)
Parent Company of Facebook. Primary revenue source comes from providing a social media platform for advertisers to run paid marketing campaigns on.

Alibaba - Down 68% from all time highs (P/E: 26.79)
Chinese multinational company that specializes in selling products through E-commerce and retail.

Paypal - Down 68% from all time highs (P/E: 28.42) (Experienced a $40 million decline in their net income from 2020 to 2021 based on their unaudited 2021 income statement [$4.2 billion to $4.16 billion]).
Financial technology company that operates an online payment system bringing in most of their revenues from transaction fees and premium business features.

Shopify - Down 64% from all time highs (P/E: 25.70)
A Canadian E-commerce company providing an E-commerce platform for online stores. They make money from subscriptions, transaction, payment and referral fees, and commissions from selling website themes.

Zoom - Down 81% from all time highs (P/E: 24.21)
A video conferencing program that offers a free platform with limited services to their customers and produces most of their revenues from selling upgraded services to their customers.

Etsy - Down 49% from all time highs (P/E: 44.61)
An E-commerce platform for people who want to sell handmade items like bags, clothing and furniture. They make money by charging their users a fee for listing products on their platform and also taking a small commission for each individual sale on their platform. They also charge fees for product advertising, payment processing, website building tools.

Epam Systems - Down 72% from all time highs (P/E: 24.34)
Specialize in selling their services for product development, digital product design and digital platform engineering.

Netflix - Down 48% from all time highs (P/E: 32.20)
A streaming service that offers movies, shows and documentaries to millions of people around the world. Their primary source of revenue comes from subscriptions to their service by their customers. (For Netflix I used the 2020 free cash flow because their 2021 free cash flow was negative due to the way their business model is set up. They spend cash upfront for Netflix originals and to acquire different shows and then amortize the costs over time on their income statement. This means that in the same year that their revenues and net income are increasing, their free cash flow may still be negative)

OPTIONS TRADING VIDEOS

- Collecting Credit using Call Debit Spread Explained: https://youtu.be/DZ8sEDIgJ7g

- Long Straddle Explained: https://youtu.be/31bYVBtmqfw

- Long Iron Condor Explained: https://youtu.be/PA-UwuqWVjs

- THE DANGER OF SPREADS: https://youtu.be/M2t4hRkATwg

- Protective Collar Explained: https://youtu.be/2iVbsMGSC2A

- Long Call Calendar Spread Explained: https://youtu.be/gItoM47pfdQ

STOCK ANALYSIS VIDEOS

- 20 For One Google STOCK SPLIT: https://youtu.be/lUyz1pWJwrQ

- EPAM SYSTEMS DOWN 60%: https://youtu.be/jCG1CdGrZyU

- ZOOM Intrinsic Value Analysis: https://youtu.be/3WrVKTu8bPE

- Nvidia Down 30%: https://youtu.be/ncn-09iMVag

- Shopify DROPS 62%: https://youtu.be/iHSwKg9uyPc

- Meta DROPS 35%: https://youtu.be/fskWqiVJQm0

HOW TO READ FINANCIAL STATEMENTS VIDEOS

- Cash Flow Statement Explained: https://youtu.be/LyYoikPkpHQ

- Stockholders Equity Statement Explained: https://youtu.be/Vs_UI4G3zME

0:00 Intro
1:30 Meta Platforms
2:35 Alibaba
3:50 PayPal
5:23 Shopify
6:34 Zoom
7:41 Etsy
8:52 Epam Systems
9:50 Netflix

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