A A stock market crash can be a painful experience, and watching your portfolio’s value drop can lead to temptation to sell. However, asset price fluctuations are daily and regular. People buy and sell stocks on a daily basis, and sometimes factors beyond the control of specific companies can motivate sellers more than buyers.
It is therefore prudent for long-term investors to conserve cash during these times to buy stocks at lower prices. If there’s a market crash soon, here are three companies that could make some great buys: Roblox (NYSE: RBLX), Airbnb (NASDAQ: ABNB), and Meta-platforms (NASDAQ: FB).
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The pioneer of the metaverse
Metaverse pioneer Roblox has seen an increase in revenue and new users since the start of the pandemic. The company has grown from 18.4 million daily active users in the third quarter of 2019 to 47.3 million in the third quarter of 2021. Roblox’s platform is free. He earns money by selling an in-game currency called Robux. The currency allows users to purchase premium content and experiences not available to free users, including items like a virtual hat or shirt.
The business is lucrative – Roblox had $ 509 million in revenue in its most recent quarter, more than double the amount for the same quarter a year earlier. Perhaps more importantly, Roblox generated $ 181 million in cash out of the $ 509 million in revenue. The increase in users, revenue and cash flow has got investors excited for Roblox. The stock is on fire, up 47% in the last month alone.
A more convenient way to travel
Global travel facilitator Airbnb was devastated at the start of the pandemic. Few people wanted to leave their homes and go to a new place with a deadly virus in circulation. Fortunately, billions of doses of effective vaccines have been administered and people are once again traveling cautiously. Airbnb is reaping the benefits of the reversal and its revenue is back above 2019 levels.
Notably, Airbnb gives travelers more options than traditional hotels: Single travelers can book a room in a host’s apartment, and families can rent an entire house. Better-suited features are part of what allows Airbnb to gain traction with consumers.
Airbnb’s success is reflected in the numbers. Its year-over-year free cash flow reached $ 1.6 billion in the last quarter, up from $ 194 million in the same period in 2019. By this metric, the company is much stronger now than before. epidemic – which is no easy task for a travel company.
Investors have noticed. Airbnb shares are trading at a price-to-sell ratio of 20, which isn’t cheap.
Social media giant turns into metaverse company
Meta Platforms was previously known as Facebook. The company has changed its name to signal its refocus on the metaverse. Still, it could be a decade before most of the company’s revenue and profit is generated by the new segment. For now, investors will have to be content with whatever Meta platforms can muster outside of their social media focus.
Fortunately for investors, this is a massive, growing and lucrative business. The company has more than 3.5 billion monthly active users in its family of applications. It generates income – a lot – by showing ads to people when they open the app and start browsing. In fiscal 2020, Meta generated revenue of $ 86 billion, more than ten times more than around $ 8 billion in 2013. Likewise, earnings per share rose to 10. $ 09 in 2020 compared to $ 0.60 in 2013.
Roblox, Airbnb, and Meta Platforms are all great companies. Investors would be cautious to put money aside in case a stock market crash makes it available at much lower prices.
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Randi Zuckerberg, former director of market development and Facebook spokesperson and sister of Meta Platforms CEO Mark Zuckerberg, is a member of the board of directors of The Motley Fool. Parkev Tatevosian has no position in the mentioned stocks. The Motley Fool owns shares and recommends Airbnb, Inc., Meta Platforms, Inc. and Roblox Corporation. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.