If you own these 3 growth stocks, you may want to reconsider your position | Personal finance

It has catalyzed almost 1,000% of shareholder returns over the past three years and 200% over the past 12 months alone. Perhaps there was unrealized value in the stock before recent periods, but it becomes almost impossible for fundamental factors to keep up with this return.

With a price-to-sell ratio extremely high at 103, valuation inflation is also likely to push the stock price higher. As is the case with MongoDB, it will take years of sustained growth before its current price matches the FAANG ratings. Cloudflare is still liquidity negative as it invests in growth and it counts Amazon among its competitors. There is a lot of execution risk here.

Cloudflare’s returns have already validated investors, delivering results years ahead of schedule. If you bought this stock more than a year ago, it’s probably a much larger part of your total portfolio. Only now does it have a greater risk of falling and less room to appreciate. You do not want to give back a lot of these gains if the market corrects over the next year. Consider moving some capital to stocks that could become the next Cloudflare.

3. Confluent

Confluent (NASDAQ: CFLT) is a data analysis stock that burst onto the investment scene with its IPO in June. The company offers a popular cloud-based data infrastructure platform. It’s very technological jargon, but it does mean that Confluent helps companies access and analyze data quickly and efficiently. This leads to better customer experiences and superior operations, so Confluent’s value to its own customers is pretty obvious.


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