One of the few guarantees you’ll get on Wall Street is that there are no guarantees when it comes to short-term stock market movements. Following a phenomenal 2021, all three major U.S. stock indexes sank into a bear market last year, with the growth-driven Nasdaq Composite (^IXIC 2.19%) falling the hardest. By year’s end, the Nasdaq rang the register with a loss of 33%.
Although bear markets can be temporarily unpleasant and cause investors to question their desire to stick around during peak periods of volatility, patience is undeniably rewarded on Wall Street. Despite never knowing how long a bear market will last or how steep the decline will be, history is crystal clear that all double-digit-percentage downturns in the major indexes, including the Nasdaq Composite, are eventually erased by bull markets.
Image source: Getty Images.
Even with a relatively strong start to 2023, the growth-focused Nasdaq Composite remains more than 20% below its all-time high, set in mid-November 2021. While some might view this as disappointing, long-term investors see it as an opportunity to pounce on high-quality growth stocks trading at a discount.
What follows are four unforgettable growth stocks you’ll regret not buying during the Nasdaq bear market dip.
The Trade Desk
The first phenomenal growth stock you’ll regret not pouncing on during the Nasdaq bear market decline is adtech company The Trade Desk (TTD 2.13%). Although ad spending could come under temporary pressure if the Federal Reserve’s forecast of a “mild recession” later this year comes to fruition, The Trade Desk finds itself at the center of one of the ad industry’s fastest-growing trends.
The Trade Desk is a demand-side platform, which means it provides a cloud-based programmatic ad platform that allows businesses to bid on digital ad space. It’s no secret that advertising budgets are moving away from traditional print and toward various forms of digital dissemination. But there’s a lot more here than simply “everything is going digital.”
Where The Trade Desk is making its mark is in the connected TV (CTV) space — in other words, internet-connected devices that allow users to stream video and/or browse the web. The company estimates its reach at more than 120 million CTV devices. Since The Trade Desk is heavily reliant on data, which allows advertisers to target consumers with their message more accurately, the company notes that CTV cost per 1,000 impressions (commonly known as CPM) is double that of traditional TV ad purchases ($20 CPM vs. $10 CPM).
To add to this point, the CTV space isn’t dominated by the usual juggernauts. Whereas Alphabet dominates traditional internet search, CTV is an open playground with transparent bids. This makes it even likelier that businesses will shift their marketing budgets to support higher ad spend in the CTV space.
Another reason The Trade Desk can shine is its international opportunity. Approximately two-thirds of all ad spend in the top 20 worldwide advertising markets occurs outside the United States. Shifting its data and innovation budget to reflect this international opportunity should provide The Trade Desk with a sustainable double-digit growth opportunity.
With nearly a decade of recurring profitability under its belt, The Trade Desk appears perfectly positioned to thrive over the long run.
Fiverr International
A second unforgettable growth stock you’ll regret not adding to your portfolio during the Nasdaq bear market plunge is gig economy stock Fiverr International (FVRR -2.56%). While rapidly rising interest rates and potential economic weakness could adversely impact the labor market, Fiverr’s online-services marketplace is rife with competitive advantages.
One of these key competitive edges comes from a macroeconomic shift in the workforce because of the COVID-19 pandemic. Although the worst of the pandemic looks to be over, more people are choosing to work remotely than ever before. This fits in perfectly with Fiverr’s operating model, which is to connect freelancers and buyers via an online marketplace.
To be fair, there are other online-services marketplaces that could benefit from this labor market change. However, Fiverr’s freelancer marketplace stands out for two reasons.
The most front-and-center difference can be seen in how freelancers market their services on Fiverr. Most competing platforms present freelancer services on an hourly cost basis. By comparison, Fiverr’s freelancers provide their scope of work for an entire project as a single cost. Buyers are getting unparalleled cost transparency when they use Fiverr’s platform, which is probably why the aggregate number of buyers on the platform, as well as spend per buyer, both keep climbing.
Read More: Nasdaq Bear Market: 4 Unforgettable Growth Stocks You’ll Regret Not Buying on