Two growth stocks, The Trade Desk and Snowflake, have fallen about 45-50% from their recent highs but remain strong investment opportunities due to their solid business fundamentals and growth prospects.
1.The Trade Desk
The Trade Desk (NASDAQ: TTD) is a leading digital advertising platform. Despite its shares dropping roughly 45% from late 2024 highs, this decline mainly reflects its previously high valuation rather than weak business results.
The company focuses on capturing a larger share of the $1 trillion advertising market, particularly the growing digital ad space beyond major platforms like Google and Meta.
In the first quarter, The Trade Desk’s revenue grew 25% year-over-year to $616 million. Its platform offers brands transparency and data to optimize ad spending, which is increasingly important as companies seek cost-effective marketing amid economic uncertainty.
Analysts expect earnings per share to grow at 31% annually, supporting the stock’s value and potential market-beating returns. The main risk is a possible slowdown in ad spending if the economy weakens, but the company’s long-term growth outlook remains strong.
2.Snowflake
Snowflake (NYSE: SNOW) is a cloud-based data management company benefiting from the shift of enterprise data to the cloud and the rise of artificial intelligence (AI).
Its shares have dropped over 50% from previous peaks due to concerns about slowing growth and high valuation. However, Snowflake continues to deliver over 20% annual revenue growth, with product revenue rising 26% in the latest quarter.
Snowflake’s platform is valued for its simplicity and cost savings, with some customers cutting data management costs by up to 50%. Its AI tools are widely adopted, with nearly half of its 11,000 customers using AI and machine learning weekly.
The company’s earnings are expected to grow at 36% annually, driven by strong demand for cloud data services and AI integration. Snowflake also maintains a healthy balance sheet and raised its revenue and profit outlook, signaling confidence in sustained growth.
Conclusion
Both The Trade Desk and Snowflake are trading at significant discounts but have strong revenue growth and earnings potential. They are positioned well to capitalize on large market opportunities in digital advertising and cloud data management, respectively, making them attractive buys for investors looking for long-term growth.
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