Top Stocks to Buy Amid Market Volatility and Uncertainty

You may have heard a saying that the Chinese word for “crisis” combines “danger” and “opportunity.” Although that isn’t true, it resonates because crises often present significant opportunities. This is evident in today’s market volatility and economic uncertainty, regardless of whether you label the situation a crisis.

Where to Invest $1,000 Now

Many strong stocks have been impacted in the recent market downturn. Here are three top stocks that are down 20% or more, making them worthwhile investments right now.

Image source: Amazon.

1. Amazon

Buying shares of Amazon (NASDAQ: AMZN) during its dips would have been a smart move in the past. Currently, its shares are 22% below their early-year peak.

This pullback largely stems from worries about tariffs. However, Amazon’s business resilience may surprise many. Even if higher costs from tariffs are passed on to consumers, its e-commerce platform remains a strong option for low-priced products.

It’s also crucial to note that high tariffs are likely a temporary issue. Whether through trade negotiations, inflation pressures, court decisions, or political changes, the current uncertainty will ease. When that happens, Amazon is positioned to rebound.

The long-term investment case for Amazon is as compelling as ever. E-commerce has significant growth potential. Companies will continue to shift IT spending to the cloud, and advancements in artificial intelligence (AI) bring additional benefits to Amazon.

2. Alphabet

Shares of Google parent Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) have fallen nearly 27% from their peak this year. Several factors are contributing to this decline beyond mere market panic.

Primarily, Alphabet faces the looming threat of antitrust lawsuits. Recently, two federal courts have ruled that Google violated antitrust laws—one case involving its search engine and another its advertising technology. Compounding matters, testimony revealed concerns that AI search engines may eventually outpace Google Search.

While these challenges may seem daunting, I don’t believe it’s time to flee from Alphabet. Although antitrust issues could pose challenges, the outcome of appeals may not be as dire as predicted.

AI advancements may eventually lead to competition for Google Search. However, Google is actively developing innovative features, such as AI Overviews embedded in its search engine. Betting against Google in this sector seems unwise.

Additionally, AI presents numerous growth avenues for Alphabet. Google Cloud is the fastest-growing major cloud provider, and Waymo is leading the way in autonomous ride-hailing. I expect Alphabet to gain significantly from these trends in the coming years.

3. The Trade Desk

The Trade Desk (NASDAQ: TTD) has seen its stock price plummet this year, down almost 60% from its high in the fourth quarter of 2024. However, this decline shouldn’t be viewed as a final blow; there is potential for recovery.

The company’s struggles stemmed from missing revenue estimates in its fourth-quarter results, marking a concerning shift in its performance. Thankfully, management has acknowledged the issue and is actively implementing strategies for improvement.

Is the transition from linear to digital advertising slowing? Not likely. The demand for ad-supported connected TV is expected to increase. Furthermore, The Trade Desk remains a preferred platform for advertisers targeting specific demographics.

If my assessments hold true, investing in The Trade Desk now could offer substantial rewards over the coming years. The current challenges present a valuable opportunity for long-term investors.

Conclusion: A Chance to Reconsider Your Portfolio

Feeling like you missed opportunities with successful stocks? Now might be the right moment to reassess your investment strategy.

At times, expert analysts issue a “Double Down” recommendation for companies poised for significant gains. If you think you’ve missed your chance to invest, consider this a strategic opportunity.

• Nvidia: Investing $1,000 when we doubled down in 2009 would have turned into $302,503!
• Apple: An investment of $1,000 in 2008 would now be worth $37,640.
• Netflix: A $1,000 investment in 2004 would have grown to $614,911.

We are currently issuing “Double Down” alerts for three exceptional companies. This opportunity may not come around again soon.

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. John Mackey, a former CEO of Whole Foods Market, an Amazon subsidiary, is also on The Motley Fool’s board. Keith Speights holds positions in Alphabet, Amazon, Apple, and The Trade Desk. The Motley Fool recommends Alphabet, Amazon, Apple, and The Trade Desk, and maintains a disclosure policy.

The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.