In the unpredictable tech market of 2025, two high-growth tech stocks are currently being offered at significantly reduced prices. The tech-focused Nasdaq-100 market index closed on March 19 with a 6.2% decline year-to-date. This decrease mostly arises from price corrections in previously high-performing stocks, prompting many to reconsider risky investments amid the current economic uncertainty.
Some tech stocks experiencing price declines were not overvalued initially. Business automation specialist Bill Holdings and digital advertising firm PubMatic have seen substantial stock value reductions, although both were reasonably priced at the end of 2024 and are now available at a discount.
Ad-tech company PubMatic experienced a 35% drop in stock value in 2025. Despite the initial reasonable valuation, the company is still feeling the effects of the ad market downturn caused by the 2022 inflation crisis. The stock price decreased by 57% since late 2021, though many competitors have rebounded, including The Trade Desk with a 28% gain and Alphabet with a 31% increase.
However, PubMatic did not benefit from this recovery. Its stock traded at 23.5 times free cash flow and 27.4 times forward earnings estimates, yet positive earnings surprises did not sway investor opinion. The company reported strong earnings on February 27, surpassing Wall Street’s expectations. Nevertheless, the focus shifted to a slight revenue miss, resulting in a 24% drop in stock value the following day.
Management projected lower revenue targets, with the midpoint of PubMatic’s guidance falling short of analyst expectations at $62 million. Nevertheless, when excluding one-time effects, fourth-quarter sales increased by 15% compared to the previous year. This growth reflects PubMatic’s shift away from second-price auctions to first-price auctions, which resulted in more consistent and predictable bidding outcomes.
As the digital advertising market stabilizes, PubMatic’s stock appears appealing at current discounted prices.
Meanwhile, Bill Holdings saw a 43% decline in stock value in 2025. Specializing in cloud-based financial services for small and medium-sized businesses, the company continued to demonstrate strong revenue growth. Over the two years leading up to February’s second-quarter report, the stock traded at a forward price-to-earnings ratio of 59.5 and a price-to-free-cash-flow ratio of 58.2.
Bill Holdings exceeded analyst expectations, typically setting modest guidance and delivering stronger actual results. Despite this, the stock dropped by 35% the following day and by 55% over the subsequent five weeks. Currently, shares are trading at 24 times forward earnings and 18 times trailing free cash flow.
The company is recognized as a high-growth entity in a vast market and is considered deserving of a higher valuation. Contributor Anthony Di Pizio identified Bill Holdings as undervalued in November 2024, and the stock is even more affordable now, with promising AI-infused services. Investors are encouraged to concentrate on Bill Holdings’ improving profits as the business matures with a sharper focus on profitability.
It is important to note that Suzanne Frey, an executive at Alphabet, serves on The Motley Fool’s board of directors. Contributor Anders Bylund has positions in Alphabet and The Trade Desk, while The Motley Fool has positions in and recommends Alphabet, Bill Holdings, PubMatic, and The Trade Desk.
