2 Remarkable AI Stocks Plummeting 30% and 73% to Consider Buying Before a 2026 Rebound

Key Takeaways

AI stocks have driven gains in the S&P 500, but not all companies have performed well this year.
The Trade Desk and DataDog have seen significant stock price declines, presenting potential buying opportunities.
Both companies show strong growth fundamentals that could lead to recoveries in 2026.

The Trade Desk’s Challenges and Opportunities

The Trade Desk has faced a sharp decline in its stock price, down 73% from its high in late 2024. This drop is attributed to a disappointing revenue forecast and increased competition, particularly from Amazon, which is aggressively entering the demand-side platform market. While The Trade Desk’s revenue grew by 20% in the first nine months of 2025, this figure fell short compared to the previous year’s growth of 27%. Third-quarter revenue, in particular, was concerning, showing just an 18% increase.

Despite these challenges, CEO Jeff Greene emphasizes The Trade Desk’s commitment to supporting the “open internet” as a differentiator from Amazon, which focuses on its own ad inventory. The company’s advanced AI algorithms promise to enhance advertisers’ campaign performances, indicating potential for mid-teen revenue growth moving forward. With a forward P/E ratio under 21, The Trade Desk could be an attractive investment as the digital advertising market continues to expand.

DataDog’s Growth Amidst Stock Pressure

DataDog’s stock price has decreased by 30% since a strong third-quarter earnings report, primarily due to insider selling and the competitive threat posed by Palo Alto Networks’ acquisition of Chronosphere. Nonetheless, DataDog’s revenue grew by 28%, while remaining performance obligations surged by 53%, projecting strong growth moving forward.

The company has also made strides in AI, with over 500 clients leveraging its tools for operational performance in large language models and generative AI applications. DataDog’s BitsAI agents, which assist in problem resolution, have shown promising user interest. Although the stock trades at a high valuation with a forward P/E of 69, the growing demand for cloud computing and observability solutions makes it a compelling investment opportunity amidst its recent price pullback.

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