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by squeaky-clean
1494 days ago
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(Disclaimer that I own some NET so I don't necessarily believe this is the case for them but also am probably biased). You can't really know it's a downturn until it ends and pops back up. Otherwise it's just their downfall. If a stock is going to just drop and continue dropping until bankruptcy, or plateau forever at a low point, then cutting your losses early would be better. But no one can really be sure which way a stock is going to go in the long-term. If you believe the dip is just a temporary thing and end up being correct then yeah it's a good play. If you end up being wrong it's just a slow way to lose money. |
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And the best legal way to do that is to be a customer or prospective customer and observe that there are no other ways to accomplish what you want to.
There're a number of beaten-down tech companies that IMHO would pass that test: NET and COIN are two of them, ZOOM, probably SHOP as well (the small businesses I know on them swear by them). I'd stay away from Affirm, Peloton, Netflix and Roblox, though - those are the ones where, as a customer, I just don't get much value out of them and could easily go elsewhere.