These 3 Stocks Were Once Hot Buys. Now They're Down More Than 50% From Their Highs. Can They Bounce Back?
Before buying struggling stocks, it's important to understand the risks that come with them.
Overview
When top growth stocks fall sharply in value, it can potentially be a great time to buy. If their fundamentals and growth prospects remain encouraging and the market has simply overreacted to short-term adversity, then the lower prices can open up some enticing opportunities for investors.
However, that doesn't mean every dip in price is a buying opportunity. In some cases, beaten-down stocks may be heading for even greater declines. It's always important to consider the context and understand why a stock has been struggling so that you understand the risks.
Details
Three stocks that in the past were hot buys but have fallen significantly this year include ServiceNow (NYSE: NOW), Strategy (NASDAQ: MSTR), and Oracle (NYSE: ORCL). Here's a look at what's weighing them down today, and if they could be worth buying at reduced levels.
Source
Originally published at www.fool.com.