New age stocks witness recovery in stock prices. Is it time for them to grow?

Is it time for the growth of new-age stocks?

Companies gained huge interest when they got listed

New-age companies generated much interest when they launched their IPOs and went public. However, after listing, their shares did not perform as investors expected. While last year was a bumpy ride for these new-age stocks, the prospective seems to be improving this year. February 2023 has proved to be a good month as the stocks have stabilised and are also rising.

Here’s how the stocks of some of the popular new-age firms have performed in February compared to the previous months –

stocks of popular new age firms

As most of the stocks saw positive growth in February, analysts are cautious, while investors might think the bad phase is over. Is it?

Related - Here are the top 3 stocks offering bonus and stock splits in February 2023.

Q3 performance of new-age stocks

The impressive performance of the firms largely contributes to the jump in the share prices of new-age stocks. Most firms have reported positive financial metrics that have boosted their stocks' market confidence. Have a look at how these companies have performed in the October-December 2023 quarter –

companies performance during oct dec quartercompanies performance during oct dec quarter

Is the worse period over?

With good third quarterly results, many believe that the worst period for new-age stocks might end. Here’s what experts believe –

  • Though quarterly earnings are good, the companies do not have sufficient earnings and are also highly valued.
  • As the country’s economy grows, the future prospects are good.
  • After a sharp correction in their initial listing prices, new-age stocks have a good long-term prospect though they might experience short-term volatility.

What should you do?

New-age companies are performing well, and if you have a long-term perspective, you might get returns on investment. So, assess the performance of the companies and then make your investment decision.

Related - Read how to profit on the stock exchange in this guide for beginners.

Disclaimer: This article is intended for general information purposes only and should not be construed as investment or legal advice. You should separately obtain independent advice when making decisions in these areas


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