Despite this, growth and tech stocks, on the whole, have performed poorly throughout 2022. And for me, this represents a buying opportunity.

So, here are two growth stocks I’m looking at buying before the market recovers.

Twilio

Twilio (NYSE:TWLO) shares have extended losses over the past five days. The stock is down 14% over the past week and 79% over the past year. However, it still has a market value of $14bn. That just reinforces quite how big this stock got in 2021.

The firm provides programmable communication tools for making and receiving phone calls, as well as sending and receiving text messages and app operations. It allows your smartphone apps to seamlessly connect with one another, and given the growth in app usage over the past few years, there is clearly a huge amount of potential here.

It’s recent performance has not been as bad as the falling share price suggests. In fact, in its last reported quarter, Twilio’s organic revenue rose 35%, above expectations. However, Twilio is still a loss-making company. Net losses for the last quarter were $221m.

So, it might be a while be Twilio becomes a truly profitable firm.

However, Twilio is on an impressive growth curve. Revenues have increased from $49.9m in 2014, to $2.8bn in 2021. Revenue from 2020 to 2021 increased by $1.1bn.

Broker ratings are hugely split on Twilio. Scotiabank issued an “outperform” rating and a $215 price target for the company in June, implying a $140 upside on today’s price. But, last week, Jefferies lowered their price target on the stock from $130 to $110.

Personally, I see this as an area of the market where there is considerable potential, and Twilio’s growth curve reflects that. For me, Twilio is a buy at $78.

Ceres Power

Ceres Power (LSE:CWR) is a British firm developing fuel cell technology. This is an area of immense potential as fuel cells could be used to power everything from cars to factories and even homes.

2022 could be a big year for Ceres. It has lucrative partnerships with Bosch and Doosan Fuel Cell, and the latter is working on a soft launch its 10kW SOFC product this year.

The fuel cell and electrochemical technology innovator also recently teamed up with Shell to deliver a megawatt-scale solid oxide electrolyser demonstrator. The product will be used to power R&D facilities in India. 

Doosan Fuel Cell is also looking to scale up production of the 10kW SOFC product with the opening of a 79,200 sq m plant in 2024.

Another positive is that Ceres does not have any debt. In fact, it had £245m in cash and has only burned £32m over the trailing 12 months, meaning it has a cash runway of about 7.6 years.

The Ceres share price has nearly halved over the past year. But the company now trades with a price-to-sales ratio of around 33.

It’s certainly going to be a competitive market, and there’s no guarantee that this technology will take off. But I’m willing to take that risk on Ceres. I’d add this stock to my portfolio today.

Conditions aren’t exactly great for growth stocks right now either. Higher interest rates tend to push the cost of growth upwards, unless the company in question has sufficient cash reserves to fund growth — Moderna being a good example.

For me, now is a good time to buy. So here are three high-potential growth stocks I’m looking at for my portfolio.

Ceres Power

Ceres Power (LSE:CWR) is a UK-based leader in fuel cell technology, enabling the production of clean and low-cost energy. Its main product, SteelCell, uses a perforated sheet of steel with a ceramic layer that converts fuel directly into electrical power.

There is clearly huge potential here. Fuel cells could be used in everything from cars, to powering homes in more remote areas, and even supporting data centre operations.

Ceres is also expanding its operations rapidly. It also has lucrative partnerships with Bosch and Doosan Fuel Cell, with the latter expected to soft launch its 10kW SOFC product this year. The South Korea firm is scaling up production and will open a 79,200 sq m plant in 2024. 

Ceres has also recently announced a partnership with Shell. It will provide the oil producer with its SOEC system to power R&D facilities in India.

With the share price falling this year, Ceres now trades with a price-to-sales (P/S) ratio of 34. It’s expensive, but that reflects the huge potential. I’d gladly add this stock to my portfolio.

NIO

I’m already a NIO (NYSE:NIO) shareholder, but I’m looking to buy more stock. However, although I think we’re going to see downward pressure on China-based stocks in the coming weeks, I believe the brand has great long-term potential.

NIO is on a Tesla-esque growth curve and its got a great USP. The Chinese electric vehicle maker uses battery-swapping technology to allow drivers to quickly return to full charge while on the road. The cars are also tech-packed and include gadgets like Nomi — an Alexa-like dashboard-mounted device that can open the windows for you, or even take a selfie.

The Chinese firm also looks cheap compared to its peers. It has a P/S ratio of 5.5, which is half that of Tesla and a fraction of US-based manufacturers.

I fear general economic woes in China may weigh on the share price in the coming weeks. But, again, I see the share price soaring in the long-run.

Twilio

US-based Twilio (NYSE:TWLO) provides programmable communication solutions for the telecommunications industry. It allows your smartphone apps to seamlessly connect with one another. 

Like other growth stocks, its been a tough year for Twilio. But there is some positive news behind the share price. In the last quarter, organic revenue rose 35%, above expectations, while revenue (including takeovers) rose 48%.

Scotiabank initiated coverage of Twilio with a bullish ‘outperform’ rating in June. The broker’s price target of $215 implies 160% upside from $85.

I think the firm is still some distance from turning a profit, hence the $221m loss in the last quarter. However, I’d be willing to add this stock to my portfolio due to its long-term potential.

Twilio stock is down 76% over 12 months.