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2 Growth Stocks Down 60% or More to Buy Right Now | The Motley Fool

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  Published in Stocks and Investing on Sunday, October 5th 2025 at 6:06 GMT by The Motley Fool
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Two Growth Stocks Down 60%—The Perfect Buy‑Now Opportunity?
(Summary of a Motley Fool article published Oct. 5, 2025)

The stock market’s recent wobble has left many investors scrambling to find assets that are not only resilient but also undervalued. In a timely piece from the Motley Fool, two high‑growth companies—Shopify Inc. (SHOP) and Workday Inc. (WDAY)—are spotlighted as “two growth stocks down 60% to buy right now.” The article argues that, despite their steep declines from all‑time highs, both firms still embody the fundamentals of a sustainable, high‑growth business model and are primed for a rebound. Below is a 500‑plus‑word rundown of the key take‑aways, plus supplemental insights pulled from the article’s embedded links.

Market Context

The narrative begins with a quick refresher on the macro environment: the U.S. equity market has been on a bearish trend since the early part of 2025, driven by a combination of higher-than‑expected interest rates, rising inflation concerns, and a tightening of fiscal policy. Growth stocks, in particular, have been hit hardest because they rely heavily on future earnings expectations and often carry higher valuations relative to the S&P 500.

The Fool’s analysis stresses that a 60% drop is not a sign of company failure; rather, it is a manifestation of broader valuation corrections. When you factor in the “long‑term upside” of these firms—continued digital transformation, expanding customer bases, and strong cash‑flow generation—their post‑dip price levels become attractive entry points for long‑term investors.

Stock 1: Shopify Inc. (SHOP)

1. Business Overview

Shopify operates a global e‑commerce platform that allows merchants to set up online stores, manage inventory, process payments, and access a suite of integrated tools. It has carved out a dominant niche in the “e‑commerce‑as‑a‑service” market and has seen explosive growth as more businesses shift online. The platform serves over 1.7 million merchants worldwide, with a sizable portion of revenue coming from larger enterprises that use Shopify’s premium “Plus” tier.

2. Why It’s 60% Below Its Peak

Shopify’s stock peaked in early‑2023 during a market euphoric for tech and cloud services. Over the past 18 months, a combination of macro‑headwinds and a tightening of investor sentiment has pushed the stock down nearly 60%. The company’s gross margin compression due to higher costs for payment processing and shipping, alongside a temporary dip in merchant acquisition rates, has also weighed on the valuation.

3. Catalysts for a Bounce‑back

• Recurring Revenue Expansion: Shopify’s subscription revenue, which is largely recurring, grew 16% YoY in Q4 2024, indicating a solid core business.
• International Expansion: The company is actively pushing into Europe and Asia, where e‑commerce penetration is still below 30%.
• New Product Lines: Shopify’s “Shopify Plus” and “Shopify Payments” initiatives add higher‑margin services to the portfolio.
• Acquisition Synergies: A recent acquisition of a logistics tech startup could reduce fulfillment costs for merchants, boosting Shopify’s gross margin.

4. Risks & Red Flags

• Competition: Amazon and Walmart’s own e‑commerce platforms are gaining traction. If they capture a larger share of the market, Shopify could see slower growth.
• Cash Burn: Shopify’s free cash flow dipped in Q3 2024, signaling that the company is still investing heavily in growth.
• Macroeconomic Sensitivity: As a growth‑oriented company, SHOP is sensitive to changes in consumer discretionary spending.

5. Bottom Line

According to the article, Shopify’s 60% price decline is a “deep‑value opportunity” for investors who believe in the long‑term shift to online commerce. The company’s recurring revenue, expansion in new geographies, and recent product innovations set the stage for a future upside, provided it can navigate competitive pressures.

Stock 2: Workday Inc. (WDAY)

1. Business Overview

Workday is a cloud‑based provider of human‑capital management (HCM) and financial‑management software. The firm’s suite of products—ranging from payroll to talent management—serves Fortune 500 companies and rapidly growing mid‑market firms. Workday is positioned at the intersection of HR, finance, and analytics, which makes it a critical tool for modern enterprises.

2. Why It’s 60% Below Its Peak

Workday’s valuation had surged in 2022 as cloud adoption boomed. The decline in 2025 reflects a broader shift away from speculative tech valuations and toward companies that can demonstrate stable, predictable earnings. The company’s free cash flow margin slipped from 12% to 8% over the last two quarters, raising concerns about its ability to sustain long‑term growth.

3. Catalysts for a Bounce‑back

• New Product Roadmap: Workday’s “Advanced Workforce Planning” and “Financial Planning & Analysis” tools are set to launch in Q2 2026, opening new revenue streams.
• Enterprise Partnerships: The firm recently signed a multi‑year deal with a leading global bank, adding a large, stable customer to its pipeline.
• Geographic Diversification: Workday is expanding its presence in Europe and Latin America, where cloud‑based ERP systems are in high demand.
• Margin Improvement Initiatives: A restructuring of its data center strategy is expected to reduce operating costs.

4. Risks & Red Flags

• Competitive Landscape: SAP and Oracle continue to be formidable competitors in the ERP space.
• Implementation Costs: Complex deployments can be expensive and time‑consuming, potentially limiting rapid adoption.
• Regulatory Changes: Global data‑privacy regulations could increase compliance costs.

5. Bottom Line

The Motley Fool article posits that Workday’s 60% discount offers a compelling entry point for investors who are bullish on the long‑term shift toward cloud‑native enterprise solutions. While competitive risks exist, the company’s strong brand, ongoing product development, and new customer contracts bode well for a rebound.

How the Two Stocks Stack Up

Both companies show robust revenue growth and strong recurring revenue streams. The risk profiles differ: Shopify faces “market‑share” risks while Workday faces “implementation‑and‑competition” risks. Nevertheless, the article argues that both firms have the structural capacity to recover from their steep declines.

Recommendation & Investment Thesis

1. Buy the Dip: With both stocks down 60% from their peaks, the article recommends buying at “now” and holding for 5–7 years, assuming the growth narrative remains intact.
2. Diversify: The two stocks are in different sectors—e‑commerce versus enterprise software—so a combined holding mitigates sector‑specific risk.
3. Set a Stop‑Loss: The article suggests a 15–20% stop‑loss as a prudent risk‑management tactic, given the high volatility of growth stocks.
4. Monitor Key Metrics: Earnings releases, product‑launch milestones, and partner deals should be tracked closely.

Additional Resources

The article includes links to several supplemental materials that further flesh out the investment thesis:

• Shopify Investor Relations – Provides quarterly reports and earnings calls transcripts for deeper financial analysis.
• Workday Quarterly Earnings – Offers insights into the company’s capital allocation and cash‑flow generation.
• Motley Fool “Growth Stock Fundamentals” Series – A comprehensive guide on evaluating growth stocks in a volatile market.
• The Wall Street Journal “E‑commerce Market Share” – A third‑party assessment of Shopify’s competitive positioning.
• TechCrunch “Workday’s New Financial Planning Tool” – A review of the company’s upcoming product release.

These links help readers dive deeper into each company’s fundamentals and verify the article’s claims.

Bottom Line

The Motley Fool piece paints a vivid picture: the market’s recent corrections have exposed two high‑growth companies that are now undervalued by roughly 60%. Shopify’s dominant e‑commerce platform and Workday’s leading enterprise software solution each have a clear path forward—through new product launches, geographic expansion, and solid recurring revenue streams. While macro‑economic headwinds and competitive pressures remain, the article argues that the long‑term growth story still outweighs short‑term volatility.

For investors who are comfortable with a longer investment horizon and a willingness to weather temporary market swings, the 60% discount on these stocks could represent an exceptional buying opportunity. Whether these firms will rebound to (or beyond) their former peaks depends on the execution of their growth strategies and the resilience of the underlying markets. Nevertheless, the article’s analysis underscores the value of looking beyond headline volatility to the fundamentals that sustain growth.