In this bear market, everything is getting hammered. But the stocks that are getting hit the hardest are those high-risk "rule-breakers" that have unproven business models. With this sell-off, risk-tolerant investors can grab 100 shares of these stocks for under $1,000.
Here are 10 stocks you might want to buy now while this macro negativity has made the stock market super-cheap.
1. Farfetch -- $7 a share
Farfetch (FTCH 3.87%) is the top dog and first mover in providing an internet platform for selling high fashion online. While Farfetch has its own retail presence, for the most part it's providing a back-end service for the $110 billion luxury fashion industry. Farfetch enjoys 65% profit margins as it helps over 1,300 high-end luxury brands market their wares online.
The stock has been hammered because of the cyclical downturn in the economy, and because Russia is a small but significant customer. If and when Farfetch stock returns to its highs, investors who buy now will enjoy a nice 9- to 10-bagger as this internet superstar climbs back over $70 a share.
2. Opendoor -- $7 a share
Opendoor Technologies (OPEN 8.05%) is the top dog and first mover in the iBuyer industry. This software company has been making waves throughout the housing market, forcing traditional real estate agencies to respond. Opendoor wants to make buying a house quick and easy, like buying a stock in the stock market. So the question is whether the company's A.I. technology can keep the company solvent while it tries to become the ultimate market maker for the multi-trillion housing market.
I'm not sure if this company can pull it off, but at $7 a share you might want to open a small position. The upside is vast. And Opendoor just reported killer Q1 numbers -- $5 billion in revenue and as well as profits in the bank.
3. Joby Aviation -- $4 a share
Joby Aviation (JOBY 4.19%) is my favorite SPAC (special purpose acquisition company) stock. The company went public by that unusual method a year ago. It's a quick and dirty way of taking a company public, and it's created a class of stocks that are really under-the-radar (because no investment bank hypes the stock to its institutional clients). Don't feel sorry for Joby, though. Even at its low share price, the stock is valued at $2.5 billion. (And in the short term it might get cheaper from here).
For me, though, this is a long-term play. Joby is top dog and first mover in the nascent air taxi industry. That's a nothing business right now, but Morgan Stanley estimates that it will be a $1.5 trillion industry by 2040. Joby's super-quiet air taxi will start hitting the skies in 2024, and I want to be an owner when it does.
4. Olo -- $10 a share
Olo (OLO 0.34%) stands for "On Line Ordering." The company's software is speeding up the trillion dollar fast-food industry as more and more people order their fried chicken and burgers from their smartphones via Olo's backend solution. Over 600 restaurant brands have migrated to the Olo platform, including names like Outback Steakhouse (BLMN 0.97%), Five Guys, Wingstop (WING 1.18%) and Shake Shack (SHAK -0.51%).
Olo promises to be the main beneficiary of an estimated $400 billion shift to online ordering. While Olo charges a cheap monthly fee for its cloud solution, what's particularly exciting about this stock is all the transaction revenue. The more people who order their fast food online, the more money Olo will make.
5. Nano-X Imaging -- $9 a share
Nano-X Imaging (NNOX -0.48%) has been a wild ride for early investors. The stock took off after its initial public offering (IPO) in 2020, running up to almost $90 a share in January 2021. The start-up has made a scientific breakthrough in nanotechnology that allows it to mass produce hospital X-ray machines for an estimated $10,000, far cheaper than the standard CAT scanner.
Nano-X wants to sell its machine at cost, or below cost, and get paid per usage. Bringing the X-ray into the digital age will make this machine ubiquitous around the world. The World Health Organization (WHO) estimates that two-thirds of the world has no easy access to X-rays. Nano-X seeks to change that situation. The company expects the U.S. Food and Drug Administration (FDA) will clear its multi-source device later this year.