A wide array of different ASX growth shares have been sold off in recent weeks and months. It looks to me like they’re on sale.
I think that the weakness of many different share prices looks like a good time to think about buying.
It’s true that some companies may have suffered a temporary bump from the COVID period of the last two years. However, I think the record low interest rates have had an even bigger impact on the willingness of many people to look at investments that might not make sense if interest rates were say 2% higher.
Businesses that are rapidly growing and are on track to making big profits in the coming years look like opportunities to me where the share price has dropped. These lower prices seem attractive, for the right business.
For example, it’s certainly possible that the share prices of Afterpay Ltd (ASX: APT) and Zip Co Ltd (ASX: Z1P) could be opportunities today. But higher interest rates (as well as regulation changes) could make it more difficult for those BNPL companies to make as much profit as expected in the future.
But, there are plenty of ASX shares that look great:
Temple & Webster Group Ltd (ASX: TPW)
The Temple & Webster share price is down 9% today at the time of writing and it’s down 23% in 2022.
The e-commerce homewares and furniture business continues to grow revenue at a very fast pace. Ongoing Omicron infections may send more customers to the business’ website.
More products and categories adds further potential for the company to grow revenue and profit in the future.
As more people shop online, I think this ASX growth share has a very positive future. Its investments in technology and customer service should pay off. Geographic growth should be good in the future too.
Adore Beauty Group Ltd (ASX: ABY)
The Adore Beauty share price has fallen 8% from 6 January 2022 and 22% since 4 November 2021.
Online beauty retailing continues to grow strongly as consumers look for places that offer a wide range of products, good prices and great customer service. Adore Beauty has a smart strategy of connecting with customers through a variety of ways, including podcasts.
I think operating leverage and scale will have a very beneficial impact on the business. The website has already been created, it can benefit as more and more volume passes through its systems.
Other opportunities
I’ve also got my eyes on other ASX tech shares such as Xero Limited (ASX: XRO), Pushpay Holdings Ltd (ASX: PPH) and Volpara Health Technologies Ltd (ASX: VHT) which have all suffered double digit drops as well in recent weeks.
If I were building a portfolio of growing businesses, this volatile period would be a great time to start doing it. The valuations are looking much better now in my opinion.
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