One of my preferred strategies over many years has been buying online marketplace stocks – REA Group, Seek and Carsales.com – during bouts of price weakness. Each is an exceptional company and well off their 52-week highs.
Online property classified star REA Group is 20% off its 2018 peak. Jobs platform Seek is down 24%; and Carsales.com is off 26.
These are unusual falls for these stocks. Previously, investors snapped up the leading online marketplace stocks during short-lived corrections. Not this time. The stocks have fallen since mid-2018 and modest rallies this year, to varying degrees, have lacked conviction.