Searching for tech deals in this volatile market? These two high-growth tech stocks are available at a discount.
In 2025, numerous tech stocks have experienced price reductions. As of March 19, the Nasdaq-100 index, which emphasizes technology, had fallen by 6.2% year-to-date. The declines largely stem from previous market favorites facing price corrections, indicating that it might be prudent to move away from risky investments in this uncertain economy.
However, some of the declining tech stocks were not overvalued to begin with. I am particularly drawn to Bill Holdings (BILL -0.07%), an expert in business automation, and PubMatic (PUBM 0.10%), which specializes in digital advertising. By the end of 2024, these high-growth stocks appeared reasonably priced, and they are now available at discounted rates.
PubMatic: Down 35% in 2025
PubMatic, a veteran in ad tech, initially had a fairly valued stock at the beginning of the year. However, it continues to suffer from the downturn in the advertising market that followed the inflation crisis of 2022, with its stock down 57% from its peak in late 2021. Meanwhile, many of its competitors have recovered from similar price declines, such as The Trade Desk (NASDAQ: TTD), which gained 28% over three years, and Alphabet‘s (NASDAQ: GOOG) (NASDAQ: GOOGL), showing a 31% rise. Unfortunately, PubMatic missed out on that recovery, trading at a modest valuation of 23.5 times free cash flow and 27.4 times forward earnings estimates, with positive earnings surprises failing to boost investor interest.
On February 27, the company reported earnings exceeding Wall Street’s predictions, but investors focused on a slight revenue miss, causing its stock to drop by 24% the next day. Furthermore, management provided a disappointing revenue target for the upcoming quarter, setting their midpoint guidance at $62 million, which fell short of the $66.2 million consensus among analysts.
However, this perspective overlooks some important aspects of PubMatic’s performance. When excluding one-off events from the fourth quarter, sales rose 15% year-over-year, demonstrating robust growth. A significant client was the last to adapt to first-price auctions, providing more consistent and predictable bidding outcomes and indicating potential for continued revenue growth moving forward. As the digital advertising market stabilizes, PubMatic’s stock currently represents a strong buying opportunity at its discounted price.
Bill Holdings: Down 43% in 2025
While cloud-based financial services for small and medium businesses may seem unexciting, Bill Holdings has been generating remarkable revenue growth in this sector. Previously, its stock averaged a forward price-to-earnings ratio of 59.5 and a price-to-free-cash-flow ratio of 58.2. The company consistently exceeds analyst expectations, and the second quarter was no exception, beating guidance estimates for both earnings and revenue, although future targets aligned closely with analyst predictions.
Despite this success, the stock plummeted by 35% the following day and fell a total of 55% in the subsequent five weeks. Currently, shares are trading at a mere 24 times forward earnings and 18 times trailing free cash flow. Bill Holdings, characterized by impressive growth and targeting a substantial market, deserves a better valuation. Fellow Motley Fool contributor Anthony Di Pizio previously highlighted Bill Holdings’ affordability; its potential is even greater now, especially with its innovative, AI-enhanced services. Investors ought to concentrate on the company’s improving profits as it matures and refines its focus on profitability.
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Anders Bylund has positions in Alphabet and The Trade Desk. The Motley Fool has positions in and recommends Alphabet, Bill Holdings, PubMatic, and The Trade Desk. The Motley Fool has a disclosure policy.
