Please ensure Javascript is enabled for purposes of website accessibility

Why You Should Watch These 3 Strong Stocks That Are Down Over 20% From 52-Week Highs

By Jose Najarro – Sep 10, 2021 at 6:30AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The three stocks are in the gaming, software-as-a-service, and semiconductor industries.

Today's video focuses on Micron Technology (MU 4.59%)Activision Blizzard (ATVI -0.53%), and Twilio (TWLO 7.15%). As of closing prices on Sept. 8, these three companies have seen an over 20% drop in stock prices from 52-week high prices. All are in solid markets that continue to see growth. Could the current prices be a buying opportunity for investors? Here are some highlights from the video. 

  1. Micron Technology creates memory chips that are used in nearly all of the electronics that we use today. As data centers, gaming, smart vehicles, VR headsets, and new technology continue to expand, Micron Technology will have more bullish cases. The main reason for the drop is the fear of memory prices decreasing, as numerous analysts have expressed concerns. 
  2. Activision, a gaming company with solid franchise games like Call of Duty, Candy Crush, and World of Warcraft, dominates in grossing mobile games. Recent regulatory enforcement of video game rules in China has investors a bit worried about future growth. Still, investors should be reminded of the current development of mobile gaming in Latin America. 
  3. Twilio reported over 67% year-over-year growth in revenue in its most recent earnings. Software stocks have taken a hit in recent weeks due to market volatility and concerns about valuations. In the video, I share some value metrics and look at the current levels of these metrics. 

Click the video below for my full thoughts and analysis. 

*Stock prices used were the midday prices of Sept. 8, 2021. The video was published on Sept. 8, 2021.
 

 
 

Jose Najarro owns shares of Twilio. The Motley Fool owns shares of and recommends Activision Blizzard and Twilio. The Motley Fool has a disclosure policy. Jose is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.

Invest Smarter with The Motley Fool

Join Nearly 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Micron Technology Stock Quote
Micron Technology
MU
$57.65 (4.59%) $2.53
Activision Blizzard Stock Quote
Activision Blizzard
ATVI
$73.95 (-0.53%) $0.39
Twilio Stock Quote
Twilio
TWLO
$49.02 (7.15%) $3.27

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
349%
 
S&P 500 Returns
115%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 12/01/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.