What goes up can come down. We’re seeing that adage play out before our eyes with the Nasdaq Composite Index. The widely followed index is roughly 13% below its previous high, putting it squarely in correction territory.
However, many of the once-soaring but now-sinking members of the Nasdaq still have excellent growth prospects. Here are three Nasdaq stocks down 20% or more that you’ll regret not buying on the dip.
Shares of Google parent Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) have dropped 23% below the all-time high set only a few weeks ago. This decline could bring out all of the doomsayers who believe the company faces existential threats from generative AI and regulators. But the sky isn’t falling for Alphabet by any stretch of the imagination. I think the current pullback presents an excellent buying opportunity.
Some started predicting Google’s demise after OpenAI introduced ChatGPT in late 2022. However, Alphabet remains a powerful player in the AI market. The company launched AI Overviews, which merges generative AI with search. Today, AI Overviews are available in more than 100 countries and are driving user satisfaction and Google search engine usage, according to Alphabet CEO Sundar Pichai.
Others point out that Google Cloud is in a distant third place in the cloud services market. That’s true, but it leaves out something important: Google Cloud is growing faster than its two larger rivals. Google Gemini, Alphabet’s large language model (LLM) that competes neck-and-neck with ChatGPT, is a major factor behind this growth.
The “negative Nellies” who dislike Alphabet also usually fail to mention the tremendous growth potential of the company’s Waymo self-driving car unit. Waymo is the leader in the autonomous ride-hailing (robotaxi) market. It will soon expand into new cities. Deepwater Asset Management managing partner Gene Munster thinks Waymo could be worth as much as $850 billion by 2030. Even if that estimate is overly optimistic, I think Waymo will become a significant growth driver for Alphabet.
Amazon (NASDAQ: AMZN) is another so-called “Magnificent Seven” stock that’s been beaten down. Shares of the e-commerce and cloud services giant have fallen around 21% from the peak achieved in early February 2025. Buying Amazon stock on pullbacks has always paid off handsomely in the past. I think it will again.
I mentioned that Google Cloud holds the No. 3 spot in the cloud services market. Who’s No. 1? Amazon Web Services (AWS) — and it’s not even close. Granted, AWS isn’t growing as fast as it has in the past. However, that’s primarily because it has more competition now. But it’s still delivering strong growth (sales soared 19% year over year in the fourth quarter of 2024). More importantly, AWS continues to have exceptional growth prospects.
