Nasdaq Correction: 2 Brilliant Stocks Down 39% and 60% to Buy Before They Soar, According to Wall Street

Market Overview - The Nasdaq Composite entered market correction territory on March 6, closing more than 10% below its recent bull-market high and currently trading 12% below the record high reached in December [1][2] Economic Impact - Uncertainty surrounding the economic impact of U.S. trade policy, including tariffs imposed by the Trump administration, has contributed to the market drawdown [2] Company Analysis: The Trade Desk - The Trade Desk stock has declined 60% from its record high in early December, with a median target price on Wall Street of $112 per share, implying 100% upside from its current price of $56 [4] - The Trade Desk is the largest independent demand-side platform (DSP), which eliminates conflicts of interest seen in competitors [6] - The company reported mixed fourth-quarter results, with revenue increasing 22% to $741 million but missing management's guidance of $756 million [7] - Non-GAAP net income rose 44% to $0.59 per diluted share, exceeding analyst expectations [7] - Wall Street expects The Trade Desk's earnings to grow at 14% annually through 2026, making its current valuation of 33 times earnings appear reasonable [9] - The company is expected to continue beating Wall Street forecasts, presenting a buying opportunity for investors with a three to five-year horizon [10] Company Analysis: Datadog - Datadog shares have fallen 39% from their record high in December, with a median target price of $160 per share, implying 55% upside from the current price of $103 [11] - Datadog provides observability software and has been recognized as a leader in digital experience monitoring and AI for IT operations [12] - The company reported strong fourth-quarter results, with revenue rising 25% to $738 million and non-GAAP earnings increasing 11% to $0.49 per diluted share [13] - Datadog's revenue retention approached 120%, indicating strong adoption of its products by existing customers [13] - Despite disappointing guidance with expected revenue growth of 19% in 2025, the company is positioned to benefit from trends in cloud computing and AI [14] - Shares currently trade at 14 times sales, below the two-year average of 18 times sales, making it an attractive option for long-term investors [15]