Investing Insights: Navigating the Bull Market and Stock Opportunities
The current bull market commenced at the beginning of 2023. By the end of 2024, the S&P 500 surged more than 50%, while the Nasdaq Composite experienced an impressive 85% increase. Recent elections temporarily fueled optimism, with many viewing the new administration as beneficial for corporations and the stock market.
Despite this enthusiasm, market instability due to trade wars and tariffs has unsettled investors. The S&P 500 recently entered correction territory, dropping 19% from its peak, and the Nasdaq has entered a bear market with a 24% decline from its recent highs. Such downturns can be challenging, but there may be opportunities ahead.
Why a Market Pullback Could Present Opportunities
Investing in stocks during a bull market often means paying premium prices. However, a significant market pullback allows investors to acquire stocks that may be fairly valued or even undervalued. While concerns about a potential recession linger, the reality is that predictions are difficult. Many thought a recession would occur in 2023, but it did not.
The key to navigating these conditions is to focus on strong, profitable companies that are likely to thrive in the long run, regardless of short-term fluctuations. Here are two stocks I believe have strong potential to rebound.
Nvidia
Once a leading performer in the bull market, Nvidia (NASDAQ: NVDA) is currently over 23% below its recent high. Some investors worry that demand for its powerful graphics processing units (GPUs) might decline alongside the economy. Yet, contrary opinions suggest otherwise.
Major hyperscalers like Amazon, Meta Platforms, Microsoft, and Alphabet have indicated continued investment in AI-related capital expenditures in their earnings calls. Elon Musk’s xAI is also developing a supercomputer that began with 100,000 Nvidia chips and may eventually expand to 1 million.
These trends suggest that deep-pocketed companies will continue purchasing Nvidia’s products at a steady pace. Nvidia’s latest earnings report for its fiscal 2025’s fourth quarter was impressive, showcasing record sales of $39 billion, marking a 78% year-over-year growth. Notably, data center revenue surged 93% year over year to $36 billion. With $35 billion in net cash, the company remains financially robust, even having repurchased $8 billion of its stock.
Image source: Nvidia.
The recent price decline has made Nvidia’s stock more accessible, with the forward price-to-earnings ratio nearing its lowest point since 2023. Given current market uncertainties, employing a dollar-cost averaging approach could be beneficial. At this price level, Nvidia appears well-positioned for attractive long-term returns.
The Trade Desk
The decline of a profitable company like The Trade Desk (NASDAQ: TTD), which now holds a valuation lower than during the March 2020 COVID-19 crash, signifies potential investment opportunities. Despite disappointing Q4 2024 earnings, which were aggravated by the broader market downturn, the stock has fallen more than 60% from its recent peaks.
The digital advertising landscape has evolved, with programmatic buying dominating how advertisers and publishers interact. This shift favors platforms like The Trade Desk, which specializes in streaming advertisements.
The Trade Desk’s recent stock drop primarily stemmed from earnings that missed estimates for the first time in over eight years. However, the company’s revenue did rise 22% in Q4 over the previous year, reaching $741 million, and 26% for 2024 to $2.4 billion. Furthermore, operating income reached record highs: $195 million for Q4 and $427 million for 2024. The guidance for Q1 2025 anticipates revenue of $575 million, an increase of 17% compared to Q1 2024. With $1.9 billion in cash and no long-term debt, the company remains financially solid despite the stock’s significant decline.
The stock currently reflects a company in distress, which is not the case. Its price-to-sales ratio is now lower than it was at the bottom of the March 2020 crash. With a forward price-to-sales ratio dropping to just 9, this scenario presents an opportune moment for investors considering The Trade Desk stock at a low valuation.
TTD PS Ratio data by YCharts.
Although the market outlook remains uncertain—with questions regarding potential recession and tariff impacts—history suggests that moments of market fear often yield the best buying opportunities. Companies like Nvidia and The Trade Desk are of high quality, and their stocks are likely to reward investors in the long run.
# Seize Your Chance: Analysts Recommend Strong Stock Investments
A Second Chance at a Lucrative Opportunity
Have you ever felt like you missed out on buying some of the most successful stocks? If so, you might want to pay attention to this update.
Occasionally, our team of analysts issues a “Double Down” Stock recommendation for companies believed to be on the verge of significant growth. If you think you’ve already lost your opportunity to invest, this moment could be crucial to act before it’s too late. The data is compelling:
- Nvidia: If you had invested $1,000 when we doubled down in 2009, you would now have $294,438!
- Apple: A $1,000 investment when we doubled down in 2008 would now be worth $37,636!
- Netflix: If you invested $1,000 when we doubled down in 2004, you’d have $613,546!
Currently, we are issuing “Double Down” alerts for three noteworthy companies, available when you join Stock Advisor. Opportunities like this may not arise again soon.
*Stock Advisor returns as of May 5, 2025
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is also on The Motley Fool’s board. John Mackey, former CEO of Whole Foods Market, is a board member as well. Bradley Guichard holds positions in Amazon and The Trade Desk. The Motley Fool has positions in and recommends Alphabet, Amazon, Meta Platforms, Microsoft, Nvidia, and The Trade Desk. The Motley Fool also recommends long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. For more details, consult the disclosure policy.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
