The principle of highs and lows is clearly evident with the Nasdaq Composite Index, which currently sits around 13% lower than its recent peak, indicating it is in correction territory.
Despite the downturn, many stocks in the Nasdaq that were once thriving still show promising growth potential. Here are three Nasdaq stocks that have decreased by 20% or more, which you might regret not purchasing during this dip.
1. Alphabet
Stock prices for Alphabet, the parent company of Google, have fallen 23% from their all-time high achieved just a few weeks ago. This decline may trigger alarm among those who believe the company is threatened by generative AI advancements and regulatory pressures. However, Alphabet’s prospects remain strong, and this current drop may represent a prime buying chance.
While some might have predicted Google’s decline after the inception of ChatGPT by OpenAI, Alphabet continues to be a formidable force in the AI sphere. Its launch of AI Overviews, which integrates generative AI with search functions, has encouraged user satisfaction and increased Google search usage globally, as noted by CEO Sundar Pichai.
Critics often ignore Google’s rapid growth in its cloud services, particularly that Google Cloud, despite ranking third, is outpacing its larger competitors. The development of Google Gemini, Alphabet’s large language model designed to compete with ChatGPT, is a significant factor in this expansion. Additionally, the growth potential of Alphabet’s Waymo self-driving car division is noteworthy, with predictions suggesting it might be valued at up to $850 billion by 2030.
2. Amazon
Amazon has also faced recent challenges, with its stock dropping approximately 21% since its peak in early February 2025. Historically, investing in Amazon during dips has yielded substantial returns, and I believe this trend will continue.
Amazon Web Services (AWS) remains the leading cloud service provider, maintaining significant growth even amidst increased competition. AWS reported a 19% year-over-year sales increase in the fourth quarter of 2024. Moreover, Amazon’s e-commerce segment continues to thrive, largely due to the popularity of Amazon Prime, and the company is strategically looking to enter new markets, including healthcare and autonomous vehicles, which are expected to yield fruitful returns in the coming years.
3. The Trade Desk
The Trade Desk has seen its stock price plummet by over 60% following a disappointing Q4 performance coupled with the broader market sell-off. Many may view this decline as disproportionate.
While The Trade Desk did miss revenue expectations significantly in its fourth-quarter update, it still achieved a commendable 22% revenue growth. CEO Jeff Green acknowledged the revenue miss, attributing it to minor execution errors rather than competition or diminishing market potential. He remains optimistic, asserting that the company’s best days lie ahead, and I share that belief.
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John Mackey, the former CEO of Whole Foods Market, a subsidiary of Amazon, and Suzanne Frey, an executive at Alphabet, are board members of The Motley Fool. Keith Speights holds shares in Alphabet, Amazon, and The Trade Desk. The Motley Fool has investments in and recommends Alphabet, Amazon, and The Trade Desk. Access to their disclosure policy is available.
The views expressed in this article are those of the author and do not necessarily reflect those of Nasdaq, Inc.
