Risky pockets of the stock market were crushed in 2022 as the Federal Reserve was forced to aggressively raise interest rates to curb decades-high inflation. Some stocks, like Peloton (PTON:US) and Carvana (CVNA:US) fell more than 95% as they failed to adjust to the post-pandemic environment.
Despite the rising rates environment, which is not friendly toward high growth risk-on stocks, Congressman Ro Khanna was still buying shares of these tech companies. Here, we highlight Khanna’s three failed bets on high-growth names.
RingCentral (RNG:US): Shares of this tech communication business contracted more than 90% from their peak in February 2021. Rep. Khanna was buying the pullback in stock, starting from August 03, 2021, when shares closed at $269.90. He was adding to his long RNG position throughout 2022 as the stock was falling. His latest buy transaction occurred on May 05, when shares closed at $81.30. The RingCentral stock closed at $36.35 on January 11.
Unity Software (U:US): Unity stock peaked later compared to RingCentral but shares still fell about 90% from their high in November 2021. Rep. Khanna commenced purchasing shares following a 50% correction from the top when the stock was exchanging hands at above $100 per share. His latest purchase occurred on November 03, when the stock closed at $26.31. Unity Software stock closed at $32.56 on January 11.
Cloudflare (NET:US): Shares of the high-growth cloud business fell about 21% from the peak in November to the 2022 low set a year later. Congressman Khanna started buying early last year when the NET stock closed at $88.55 on January 21. He kept adding to his position with the most recent purchase made on November 02, when the stock closed at $49.94. Cloudflare shares closed at $43.53 on January 11.