Why I’m Not Panicking About the 2 Worst-Performing Growth Stocks in My Retirement Account

Following the Gardner-Kretzmann Continuum’s recommendation for individual investors to hold as many stocks as their age, I currently have 36 core holdings in my retirement account. While I also own starter-sized positions in other stocks, I focus the majority of my monthly dollar-cost averaging on these 36 holdings.

In 2024, my worst-performing stocks so far have been fintech company SoFi Technologies (NASDAQ: SOFI) and streaming platform Roku (NASDAQ: ROKU), which are down between 36% and 38%. Despite these drops, I have no intention of selling at this time.

I have a fear of missing out (FOMO) when it comes to selling too early and potentially missing out on significant gains in the future. Many successful stocks, like Nvidia, Amazon, and Netflix, have faced challenges in the past before becoming multibaggers.

Instead of selling, I prefer to pause my additions and monitor struggling stocks over a longer period. Here’s why I’m not panicking over the recent sell-off of SoFi and Roku, and why I find one of them particularly intriguing at current prices.

SoFi Technologies has seen a 35% drop in its stock price in 2024, despite beating estimates in its most recent quarter. The company’s revenue grew by 26% in the first quarter, with its financial services segment showing strong growth. SoFi’s deposits have increased, providing a stable funding source for its lending segment.

Roku, on the other hand, has faced challenges with its free cash flow margin but is benefiting from the shift in ad spend towards connected TV (CTV). The company’s deal with The Trade Desk and its industry-leading reach make it a compelling long-term investment.

While both stocks have experienced declines, I believe in their potential for future growth and am willing to be patient. As an individual investor, I prefer to focus on the long-term outlook rather than short-term fluctuations.

In conclusion, I remain confident in my investment strategy and see the current market conditions as an opportunity to potentially benefit from the long-term growth prospects of SoFi Technologies and Roku.