2 Stocks Down 23% to 57% to Buy Right Now

Core Insights - Despite the Nasdaq Composite and S&P 500 indices reaching all-time highs, there are still investment opportunities in the tech sector for discerning investors [1][2] Group 1: The Trade Desk - The Trade Desk has been a popular buy-side digital advertising platform since its IPO in 2016, attracting customers due to its neutrality compared to competitors like Google and Amazon [3] - The company's growth faced challenges in 2025 after missing revenue projections for Q4 2024, leading to a 57% decline in stock price from its 2025 peak [4] - Transition issues from the legacy platform Solimar to the new AI-based platform Kokai have caused user confusion and dissatisfaction, resulting in lawsuits [5] - Recent improvements in addressing Kokai's issues have led to a 22% year-over-year revenue increase for the first half of 2025, with the stock rising 17% since mid-September [6] - The Trade Desk's P/E ratio stands at 62, which is double the S&P 500 average, but the stock is currently trading below its historical earnings multiple of 150 [7] Group 2: Reddit - Reddit's shares have decreased by 23% from their all-time high earlier this year, despite a 508% increase since its IPO in March 2024 [8] - Concerns regarding the decreasing citation of Reddit sources by AI models like OpenAI's ChatGPT have raised doubts about the value of Reddit's data, potentially impacting revenue from data licensing [9][10] - The majority of Reddit's revenue (nearly 90%) comes from advertising, making the potential decline in AI-driven traffic a significant concern [11] - Despite these challenges, key metrics such as user growth, revenue growth, and earnings growth remained solid as of the latest earnings report for Q2 2025 [12] - Investors are encouraged to consider buying Reddit shares on the dip, with the next earnings report expected around November 3, 2025 [13] Group 3: Investment Considerations - Both The Trade Desk and Reddit have faced skepticism regarding their competitive advantages, leading to significant stock sell-offs [14] - Successful investing involves assessing whether market reactions to new challenges are overreactions or indicative of long-term issues [15] - Continued growth in popularity and revenue for both companies suggests potential for stock price recovery over time [15]