Zoom, PagerDuty, And MongoDB – Meet The New ‘Phoenix’ Stocks

The best-performing stocks of 2019 are surely enterprise software companies, despite the buzz over recent IPOs like Pinterest, Lyft, and Uber. We know that Uber and Lyft saw a significant downfall, which indicates that consumer-facing tech companies are slightly less viable for investors.

The Best-Performing Stocks Are Lesser Known Companies

Isn’t that the truth? Let’s take Zoom for example. This company went public in April 2019 and traded at nearly triple its IPO price of $46. The next company is PagerDuty, which traded at more than double its IPO price of $25. In 2019, MongoDB also increased its stock by 96% compared to 2017, when it went public. The interesting company is Salesforce, a veteran among these companies. Salesforce went up about 22% in 2019 but up 90% since 2017.

The Pure Examples of ‘Phoenix’ Stocks

Why are these called ‘Phoenix’ stocks? Danielle Shay, director of options at Simpler Trading wanted to explain. Basically, she said that these stocks will fail when the market falls, yet they’re the first one to rise from the ashes… Just like a Phoenix would do! The ‘Phoenix’ stocks aren’t here for the long-term investors. Instead, these are short-term investments that are best utilized after a market downfall. One company that caught her eye is Zoom. It exceeded expectations on both revenue and earnings, which is the best example of such stock.

A Great Year for the ‘Phoenix’ Stocks

2019 is one hell of a year for the ‘Phoenix’ stocks, especially for the subscription-based businesses. Now that we have Zoom, some of the most profitable companies also joined the ballpark. These include Cloudera, DocuSign, and Dropbox. The interesting thing is that all these companies are subscription-based and they all marked a significant growth. Kathleen Smith, manager of the Renaissance IPO ETF, told Yahoo Finance that these companies can get growth and recurring revenue. She also announced a new company called CrowdStrike, as well as Slack, which is already a well-known company.

Disclaimer: The information on this site is provided for discussion purposes only, and should not be misconstrued as investment advice. Under no circumstances does this information represent a recommendation to buy or sell securities.