2 ASX shares to consider amid the share market sell-off

These two ASX shares have been hurt, but are they opportunities right now?

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Key points

  • Some ASX shares have dropped significantly in 2022 but that doesn't necessarily make them good value
  • The Betashares Nasdaq 100 ETF is invested in many of the world’s biggest tech companies
  • Kogan is an e-commerce ASX share that sells a wide variety of products and services

The ASX share market has seen significant volatility since the start of 2022.

While some investors may be looking to swoop on companies with lower share prices, a company isn’t necessarily better value just because its share price drops.

Sometimes the decline may reflect an issue with the company itself rather than the prevailing market conditions.

However, these two ASX shares could be ones to consider in the current environment:

Betashares Nasdaq 100 ETF (ASX: NDQ)

This is an exchange-traded fund (ETF) focused on the 100 largest businesses on the NASDAQ, which is a stock exchange in North America.

The fund owns a number of the world’s largest technology businesses like Microsoft, Apple, Amazon, Alphabet, Meta (Facebook), Tesla, and Nvidia.

The NDQ ETF price has fallen almost 20% since the start of 2022. An ETF simply tracks the progress of the underlying businesses so, on average, the ASX share’s underlying holdings have dropped by almost 20% in value in Australian dollar terms.

There are a number of other businesses in the portfolio, not just the biggest tech names. These include Adobe, PayPal, Booking, Moderna, Costco, Starbucks, Intuitive Surgical, and Advanced Micro Devices.

The fund has an annual management fee of 0.48%.

Kogan.com Ltd (ASX: KGN)

Kogan is one of the largest e-commerce businesses in Australia and New Zealand.

However, its market capitalisation is now a lot lower after this year’s volatility. Since the beginning of 2022, the Kogan share price has fallen by 44%.

Yet, despite that, the company has continued to deliver scale growth. In the first six months of FY22, gross sales increased by 9.4% to $698 million. The number of active customers also increased by 9.4% to more than four million.

Kogan First subscribers are growing quickly – between the first half of FY21 and February 2022, subscribers grew 213% to over 310,000. Kogan members demonstrate “stronger loyalty and repeat purchase behaviour than non-subscribers”, according to the company.

While the company’s operations and profitability are facing issues, the ASX share points out that it’s increasing market share in a rapidly growing market. In FY21, the company’s market share grew from 2.4% to 2.7%.

In the second half of FY22, it’s expecting further growth in Kogan First subscribers, heading towards its FY26 goal of one million subscribers. It’s also expecting continued growth in the Kogan marketplace as well as improved operating leverage, which the company says is consistent with its long-term track record.

Another FY26 goal for the ASX share is $3 billion of gross sales. To reach that, Kogan aims to achieve a gross sales compound annual growth rate (CAGR) of at least 20% per annum.

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns and has recommended Adobe Inc., Advanced Micro Devices, Alphabet (A shares), Amazon, Apple, BETANASDAQ ETF UNITS, Booking Holdings, Costco Wholesale, Kogan.com ltd, Meta Platforms, Inc., Microsoft, Nvidia, PayPal Holdings, Starbucks, and Tesla. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended Alphabet (C shares) and Moderna Inc. and has recommended the following options: long March 2023 $120 calls on Apple, short April 2022 $100 calls on Starbucks, and short March 2023 $130 calls on Apple. The Motley Fool Australia owns and has recommended BETANASDAQ ETF UNITS and Kogan.com ltd. The Motley Fool Australia has recommended Adobe Inc., Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Booking Holdings, Meta Platforms, Inc., Nvidia, PayPal Holdings, and Starbucks. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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