I don’t invest all that frequently in the Nasdaq. One reason is, like other investors, I’m moving away from growth stocks at present. Another more practical reason is that I’m charged an exchange rate fee for purchasing dollar-denominated shares. Despite this, here are three Nasdaq-listed stocks I’m looking at for my portfolio.

Netflix

Netflix shares have fallen massively this year. First the tech sell-off, then a disappointing trading update in which it highlighted falling subscriber numbers, and now investors are suing it for allegedly misleading the market. But Netflix remains a very profitable business. It’s price-to-earnings ratio was around 17 for the last four quarters. That’s not bad for a tech stock.

Operating income was $6.2bn in 2021 and I see this growing if the firm can sustain subscriber numbers while reducing content spending. This jumped massively between 2020 and 2021. Economising on such spending could improve margins. If I were to invest, I’d be a little concerned about competition eating into Netflix’s market share. As a consumer, I actually prefer Amazon‘s offering and BritBox.

Novavax

I was fortunate to invest in Novavax (NASDAQ: NVAX) as it rose during the pandemic. In the end, I lost faith in the company and its Covid-19 vaccine — its first commercialised product. But now I’m considering it again. It’s trading below its 2021 highs, and I still think there’s appetite for an effective non-mRNA vaccine in the battle against Covid-19. Novavax projects $4bn to $5bn in revenue for 2022. According to analysts, vaccine sales should account for $3.5bn in revenue.

The company is waiting for US regulatory approval, where green-lit shots include those made by Pfizer, Moderna and Johnson & Johnson. The vaccine has been approved around the world, including in the UK and EU, although that’s no guarantee it’ll be given access to the potentially lucrative US and that remains a risk.

Oriental Culture Holding

Oriental Culture (NASDAQ: OCG) is by far the smallest company on this list. The firm, based in China, provides a platform for the online trade of artworks and collectibles. In its recently released full-year results, OCG announced that operating revenues increased 115.6% to $37.6m in 2021. Gross profit rose 137.7% to $35.2m, up from $14.8m in 2020.

The growth of the Chinese art market is one reason I’m looking to add this stock to my portfolio. Revenue from fine art sales in China grew 43% to $5.9bn in 2021, with 63,400 pieces sold, according to Artron, a Chinese art sector group. This figure puts China ahead of the US by revenue generated from fine art sales. However, it’s worth noting that there could be some short term pain for the Chinese art market in 2022 with the current Covid-19 lockdowns.

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However, that doesn’t mean I’m ignoring growth stocks. In fact, I’ve been digging deeper to find some with great long-term prospects for my portfolio.

Oriental Culture Holdings

I’ve had Oriental Culture (NASDAQ: OCG) in my watchlist for a while. As I write, the stock is trading below its IPO price, but this belies a strong showing in 2021. In its full-year results, released on Monday, it said that operating revenues increased 115.6% to $37.6m in the 2021 fiscal year. Gross profit rose to $35.2m in 2021, up from $14.8 million in 2020, representing 137.7% growth.

The company is a leading online service provider for the trade of artworks and collectibles. It experienced its impressive growth on the back of a resurgent Chinese market. In 2021, more revenue was generated from fine art sales in China than in the US, according to Artron, a Chinese art sector group. Revenue from fine art sales in China grew 43% to $5.9bn in 2021, with 63,400 pieces sold. The company is also moving into the non-fungible token space, which could prove lucrative in the future.

While I feel this is a great long-term pick for my portfolio, it’s worth considering the impact of continued Covid-19 lockdowns in China on the country’s art market.

Netflix

Netflix (NASDAQ: NFLX) tanked in April after the subscription service released disappointing Q1 figures. The report showed that subscribers are leaving Netflix’s streaming services in record levels and investors subsequently rushed for the exits. The stock fell 40% in a single day and is currently trading around $200 a share. That’s a massive fall from the $700 it was trading at in November.

Despite this, the company remains profitable. Net income during the quarter ended March 31 fell 6.4% to $1.6bn, down from $1.7bn the year before. But interestingly, Netflix said it would have seen 500,000 net additions during the most recent quarter if it wasn’t for the impact of shutting down its services to Russians. The winding-down of all Russian paid memberships resulted in a loss of 700,000 subscribers. 

Yalla Group

My final pick is Yalla Group (NYSE: YALA). The stock gained after its IPO in 2020 and went from strength to strength, reaching $39 a share amid the unique market conditions. But it started falling in early 2021. Currently, the social networking and gaming provider is trading at a little over $4 a share, so there’s plenty of headroom here.

The firm posted net income of $82.6m in 2021 compared with net income of $3.2m in 2020. That’s impressive, but growth has slowed. In fact, revenue actually declined in the final quarter of 2021. For me, Yalla will need to show evidence that it can get growth back on track. But it has an ambitious plan and enough cash to push forward. Yalla’s price-to-earnings ratio is around 10, which for a tech stock, makes it look pretty cheap to me. 

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