In the video below, Motley Fool portfolio manager David Meier and managing editor Eric Bleeker discuss tech events over the past week.
Throughout 2012, momentum companies that often exhibited little-to-no profitability but high revenue growth were some of the market's top performers. Well known stocks like Netflix and Tesla epitomized the trend. Yet, since the Nasdaq hit new highs in early March, many of these momentum stocks have seen vicious pullbacks.
In the video below, David Meier highlights two high-flyers that he feels could be strong buys after recent retreats. He singles out Yelp (NYSE: YELP ) , which is off 43% since the beginning of March and Twitter (NYSE: TWTR ) , a stock off 45% from its December peak.
While David admits both stocks are still extremely pricey after their recent sell-offs, he highlights Yelps ability to continue building additional services for local businesses on top its platform. With regards to Twitter, Eric questions recent user engagement statistics, but David believes the company's management is making enough changes to assure Twitter remains a top social platform across the foreseeable future. While both Yelp and Twitter are still pricey stocks that could continue to see their share prices fall if the broader tech market sell-off continues, David believes long-term investors in either company will be rewarded if they can exhibit the patience to hold the stocks through continuing market turbulence.
To see Eric and David's full thoughts and discussions on these companies, watch the video below.
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