Thu. 25 Nov 2021, 10:52am ETBenzinga
In: Long Ideas, Short Ideas, Top Stories, Media, Trading Ideas

Stocks of high-growth names on the Nasdaq took a severe hit during Wednesday’s trading session.

On CNBC’s “Halftime Report,” Jenny Harrington of Gilman Hill Asset Management said they were not looking to buy the dip. She recommended buying stocks for their growth strategy and have a 5% or more free cash flow yield.

Stocks like PayPal Holdings Inc (NASDAQ:PYPL), Coinbase Global Inc (NASDAQ:COIN) and Zoom Video Communications Inc (NASDAQ:ZM) can be considered if they get cheaper, Harrington said. She added, however, that they were “still a long way away.” These stocks will need to decline another 30% to get to the targeted free cash flow yield.

Joseph Terranova of Virtus Investment Partners said that the largely bearish sentiment for hypergrowth stocks is unlikely to reverse till yearend.

There is likely to be “a bifurcated performance” in technology stocks through the remainder of the year, depending on their qualitative performance and free cash flows, Terranova mentioned. These are “really the multi-trillion-dollar type of equity names,” like Microsoft Corporation (NASDAQ:MSFT) and Apple Inc (NASDAQ:AAPL), he added.

There may not be a recovery in the stocks of companies that will generate revenues sometime in the future, Terranova said.